§ 9.3.1.4 TAXATION OF COSTS AGAINST PARTY FOR LACK OF GOOD FAITH IN CONDUCT OF LITIGATION

• Jurisdiction: Arizona

§ 9.3.1.4 Taxation of Costs Against Party for Lack of Good Faith in Conduct of Litigation

In addition to the other bases on which costs may be awarded, Arizona courts have indicated that, at least in condemnation cases, costs may be assessed against a party that has not conducted the litigation in good faith. Because of the heavy-handed nature of the power of eminent domain, Arizona courts have permitted the condemnor to be taxed for the defendant's costs if the condemnor either instituted or abandoned the lawsuit in "bad faith," or if it did not diligently prosecute the case. State ex rel. Morrison v. Helm, 86 Ariz. 275, 282-83, 345 P.2d 202, 206-07 (1959), appeal dismissed, 362 U.S. 609 (1960); City of Sedona v. Devol, 196 Ariz. 178, 179, 993 P.2d 1142, 1143 (App. 1999). In Helm, the owners of a leasehold interest in real property obtained a judgment in their favor fixing the amount of damages that would result from the state's taking of their leasehold interest. The state appealed; however, while the appeal was pending, the state...