Not every lawsuit gives rise to attorney fees if you win. Yet, the Arizona Supreme Court just ruled that the successful party on a claim for breach of the implied warranty of workmanship and habitability qualifies for an attorney-fee award under either a contractual fee provision or A.R.S. § 12-341.01. see Sirrah Enterprises v. Wunderlich

Plaintiff/homeowner hired a general contractor to build and finish a basement. Plaintiff sued for breach of the implied warranty of workmanship and habitability, and the jury ruled for the Plaintiff. The trial Judge then awarded the attorneys’ fees pursuant to both a contractual fee provision in the General Contractors Construction Agreement and A.R.S. § 12-341.01. The court of appeals affirmed based only on the contractual fee provision.

The Arizona Supreme Court stated that the law imputes the implied warranty of workmanship and habitability into every construction contract, rendering the implied warranty a term of the existing express contract. In short, you may have rights that are not spelled out in your construction contract. The Arizona Supreme Court therefore concluded that a successful party on a claim for breach of the implied warranty of workmanship and habitability is eligible for an award of attorneys’ fees under A.R.S. § 12-341.01. It makes sense, because everyone knows that you build a house to live in it, thus it is “implied” that the various rooms should be habitable.

Construction law cases are very fact intensive. At the law firm of William A. Miller we have handled scores of these on both the builder and homeowners behalf. Give us a call at 602-319-6899 if you would like to discuss your case.

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