Sirrah Enterprises v. Wunderlich – 8/9/2017

September 5, 2017

The Arizona Supreme Court holds 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.

Homeowners hired a contractor to build a basement.  Homeowners filed a claim for breach of the implied warranty of workmanship and habitability, and the jury found in the homeowners’ favor.  The trial court then awarded the homeowners their attorneys’ fees pursuant to both a contractual fee provision and A.R.S. § 12-341.01.  The court of appeals affirmed based only on the contractual fee provision.

The Arizona Supreme Court noted 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.  The 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.

Justice Timmer authored the opinion, in which Chief Justice Bales, Vice Chief Justice Pelander, and Justices, Brutinel, Bolick, Gould, and Lopez joined.