Section 3.7.28 Issues Arising from Fee Disputes

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 3.7.28 Issues Arising from Fee Disputes

Even unpublished appellate decisions provide some guidance as to how courts will resolve fee disputes between design professionals and their clients. First, and foremost, where the contract requires delivery to a complete set of construction documents as a condition of payment, that condition must be fulfilled.²³¹ Second, where the contract includes a schedule and terms on which the professional fee will be paid, that schedule will usually be enforced rather than an estimate of the reasonable value of services performed.²³²

Contracts for a design professional’s services often require a transfer of the copyright in the professional documents to the client or a third party such as a lender or investor in the project. If the design professional has not required in its contract payment in full before that copyright assignment is effective, courts will enforce a transfer of copyright ownership of the design and construction documents to a third party even though the design professional has not been paid.²³³

A Tumbling-T Ranches v. Flood Control District of Maricopa Cnty., 220 Ariz. 202, 204 P.3d 1051 (Ct. App. 2008)........................................................................................................................................................... 3.7-35

Aesthetic Prop. Mgmt., Inc. v. Capitol Indem. Corp., 183 Ariz. 74, 900 P.2d 1210 (1995) 3.7-37

Albano v. Shea Homes Ltd. P’ship, 227 Ariz. 121, 254 P.3d 360(2011)................................... 3.7-33

Archicon, L.C. v. TPI Proprs., LLC 2013 Ariz. App. Unpub. LEXIS 305; 2013 WL 1174059 (Ct App 2013)................................................................................................................................................... 3.7-4, 36, 37, 38

Audlane Lumber & Builders Supply, Inc. v. D.E. Britt Assocs., Inc., 168 So. 2d 333 (Fla. Ct. App. 1964)...................................................................................................................................................................... 3.7-18

Badia v. City of Casa Grande, 195 Ariz. 349, 988 P.2d 134 (Ct. App. 1999).......................... 3.7-22

Barmat v. John & Jane Doe Partners A-D, 155 Ariz. 519, 747 P.2d 1218 (1987).......... 3.7-12, 21

Barrett v. Harris, 207 Ariz. 374, 86 P.3d 954 (Ct. App. 2004)....................................................... 3.7-29

Bd. of Regents of the Univ. & State Colleges of Ariz. v. Cannon, 342 P.2d 207, 86 Ariz. 176 (1959) 3.7-28

Beaudry Motor Co., Inc. v. New Pueblo Constructors, Inc., 128 Ariz. 481, 626 P.2d 1113 (Ct. App. 1981)...................................................................................................................................................................... 3.7-32

Bianco v. Cessna Aircrafts Co. 2004 WL 3185847 Ariz. App. (Oct. 16, 2004)......................... 3.7-9

Blecick v. School Dist. No. 18 of Cochise Cnty., 2 Ariz. App. 115, 406 P.2d 750 (1965)..... 3.7-9

Brennan v. St. Louis Zoological Park, 882 S.W.2d 271 (Mo. Ct. App. 1994)......................... 3.7-28

Burkhons v. Ticor Tile Ins. Co. of Cal., 168 Ariz. 345, 813 P.2d 710 (1991).......................... 3.7-24

Cella Bar Assocs., Inc. v. Cohen, 177 Ariz. 480, 868 P.2d 1063 (Ct. App. 1994).................. 3.7-36

Chaney Bldg. Co. v. City of Tucson, 148 Ariz. 571, 716 P. 2d 28 (1986)................... 3.7-25, 27, 30

Chiara v. Fry’s Food Stores of Ariz., 152 Ariz. 398, 733 P.2d 283 (1987)................................ 3.7-21

Coburn v. City of Tucson, 143 Ariz. 50, 18 691 P.2d 1078 (1984)...................................... 3.7-23, 26

Cont’l Lighting & Contracting, Inc. v. Premier Grading & Utilities, LLC, 227 Ariz. 382, 258 P.3d 200 (Ct. App. 2011)................................................................................................................................................ 3.7-38

Cook v Orkin Exterminating Co, Inc. 227 Ariz. 331; 258 P.3d 149 (Ct. App. 2011)........... 3.7-14

Craviolini v. Scholer & Fuller Associated Architects, 89 Ariz. 24, 357 P.2d 611 (1961)......... 3.7-9

Cunningham v. Goettl Air Conditioning, Inc., 194 Ariz. 236, 980 P.2d 489 (1999)............. 3.7-35

Darner Motor Sales, Inc. v. Universal Underwriters Ins. Co., 140 Ariz. 383, 682 P.2d 388 (1984) 3.7-22

Del Mar Land Partners, LLC v. Stanley Consultants, Inc., 2012 U.S. Dist. LEXIS 204447, 2012 WL 1019066 (D. Ariz. 2012).................................................................................................................................. 3.7-14, 31

Diaz v. Phoenix Lubrication Serv., Inc. 224 Ariz. 335, 230 P.3d 718 (Ct. App. 2010).. 3.7-21, 22

Donnelly Constr. Co. v. Oberg/Hunt Gilliland, 139 Ariz. 190, 677 P.2d 1298 (Ct. App. 1983) 3.7-passim

Dryden v. Bell, 158 Ariz. 164, 761 P.2d 1068 (Ct. App. 1988)..................................................... 3.7-31

Easter v. Percy, 168 Ariz. 46, 810 P.2d 1053 (Ct. App. 1991)......................................... 3.7-22, 23, 26

Englehart v. Jeep Corp., 122 Ariz. 256, 594 P.2d 510 (1979)....................................................... 3.7-27

Envt’l Liners, Inc. v. Ryley, Carlock & Applewhite, 187 Ariz. 379, 930 P.2d 456 (Ct. App. 1996) 3.7-12, 21

Equal Rights Center v. Niles Bolton Assocs., Inc., 602 F.3d 597 (4th Cir. 2010).................. 3.7-34

Evans Withycombe, Inc. v. W. Innovations, Inc., 215 Ariz. 237, 159 P.3d 547 (Ct. App.2006) 3.7-32, 33

Flagstaff Affordable Hous. Ltd. P’ship v. Design Alliance, Inc., 223 Ariz. 320, 223 P.3d 664 (2010) 3.7-3.7-passim

Flowers v. K-Mart Corp., 126 Ariz. 495, 616 P.2d 955 (Ct. App. 1980)................................... 3.7-29

Fry’s Food Stores of Ariz., Inc. v. Mather & Assocs., Inc., 183 Ariz. 89, 900 P.2d 1225 (Ct. App. 1995) 3.7-32

Gagne v. Bertran, 43 Cal. 2d 481, 275 P.2d 15 (1954).................................................................... 3.7-27

Gemstar Ltd. v. Ernst & Young, 185 Ariz. 493, 917 P.2d 222 (1996)...................................... 3.7-27

Gipson v. Kasey, 214 Ariz. 141, 150 P.3d 228 (2007)................................................ 3.7-13, 21, 25, 29

Good v. City of Glendale, 150 Ariz. 218, 722 P.2d 386 (Ct. App. 1986)................................. 3.7-31

Goodyear Aircraft Corp. v. Arizona State Tax Comm’n, 1 Ariz. App. 302, 402 P.2d 423 (1965) 3.7-22

Griffith v. Valley of the Sun Recovery & Adjustment Bureau, Inc., 126 Ariz. 227, 613 P.2d 1283 (Ct. App. 1980);.......................................................................................................................................................... 3.7-31

Gringo Pass, Inc. v. United States, 20113 US APP LEXIS 21163 (9th Cir. 2013).................. 3.7-8

Hafner v. Beck, 185 Ariz. 389, 916 P.2d 1105 (Ct. App. 1995)...................................... 3.7-13, 21, 22

HCBeck, Ltd. v. PCCP CS Forum Portales Phase II, LLC (2013 Ariz. App. Unpub. LEXIS 682, 2013 WL 3009444 (Ct. App. 2013)...................................................................................................................... 3.7-29

Herman Chanen Constr. Co. v. Guy Apple Masonry Contractors, Inc., 9 Ariz. App. 445, 453 P.2d 541 (1969)...................................................................................................................................................................... 3.7-34

Herstam v. Deloitte & Touche, LLP, 186 Ariz. 110, 919 P.2d 1381 (Ct. App. 1996)........... 3.7-35

Hoffman v. Greenberg, 159 Ariz. 377, 767 P.2d 725...