ARIZONA STATE SENATE
Phoenix, Arizona
commercial
landlord tenant; attorney fees
Purpose
Requires the
court to assess damages, attorney fees and court costs in an action involving a
commercial landlord-tenant dispute.
Background
Current commercial landlord tenant law stipulates that when a tenant fails to pay timely rent or violates any provision of the lease, the landlord may take possession of the property or begin a court action to recover the premises (A.R.S. 33-361). Although statute provides for the recovery of costs in an eviction proceeding, it does not specifically provide for recovery of attorney fees and court costs. However, it has been customary practice in the commercial property leasing industry for landlords to interpret the statute to be inclusive of attorney fees and court costs. Currently, the Arizona Residential Landlord and Tenant Act and the Mobile Home Landlord and Tenant Act allow the recovery of such costs in an eviction proceeding (A.R.S. 33-1315; 33-1377 and 33-1408).
A recent Arizona Court of Appeals ruling in Camelback Plaza Development, L.C. v. Hard Rock Café International, Inc. (Phoenix) [200 Ariz. 206] overturned customary practice in the commercial property leasing industry by stating, “as a general rule, when the Legislature means to authorize the recovery of attorneys’ fees, it expressly states that intention.” The decision held that such fees are not recoverable unless they are expressly provided for by statute, even when the parties’ lease provides otherwise. This essentially negates the ability of commercial landlords to recover attorney fees and court costs in commercial eviction actions.
H.B. 2264 authorizes the court to assess damages, attorney fees and court costs, in addition to determining the right to actual possession, in an action involving a commercial landlord-tenant dispute.
There is no anticipated fiscal impact to the state general fund associated with this bill.
Provisions
1. Authorizes the court, in addition to determining the right to actual possession in a commercial landlord-tenant proceeding, to assess damages, attorney fees and court costs.
2. Makes technical and conforming changes.
3. Provides for a general effective date.
JUD 2/5/02 DP 9-0-0-1
CED 1/28/02 DPA 10-0-0-0
3rd Read 3/21/02 53-3-4-0
Prepared by Senate Staff
March 28, 2002