BURKETT v. DRYJA
CourtArizona Supreme Court
Date FiledOctober 28, 2026
DocketCV-25-0143-PR
JudgeWilliam Montgomery
StatusPublished
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Full Opinion
IN THE
SUPREME COURT OF THE STATE OF ARIZONA
STEPHANIE BURKETT, AS TRUSTEE OF THE STEPHANIE RAE BURKETT
REVOCABLE TRUST DATED JANUARY 28, 2011,
Plaintiff/Appellee,
v.
JOHN AND ANITA DRYJA, HUSBAND AND WIFE,
Defendants/Appellants.
No. CV-25-0143-PR
Filed Oct. 28, 2026
Appeal from the Superior Court in Pima County
The Honorable Wayne E. Yehling, Judge
No. C20224152
REVERSED IN PART AND REMANDED
Opinion of the Court of Appeals, Division Two
260 Ariz. 1 (App. 2025)
VACATED
COUNSEL:
Evan L. Thompson, Alan R. Hill (argued), Thompson Krone, P.L.C., Tucson,
Attorneys for Stephanie Burkett
Brian A. Laird (argued), Laird Law PLLC, Tucson, Attorney for John and
Anita Dryja
BURKETT V. DRYJA
Opinion of the Court
JUSTICE MONTGOMERY authored the Opinion of the Court, in which
CHIEF JUSTICE TIMMER, VICE CHIEF JUSTICE LOPEZ and JUSTICES
BOLICK, BEENE, KING, and CRUZ joined.
JUSTICE MONTGOMERY, Opinion of the Court:
¶1 The covenants, conditions, and restrictions (“CC&Rs”) under
consideration in this matter do two things: they restrict how owners may
use their lots, and they allocate the costs of enforcing those restrictions.
One provision prohibits any owner or resident from creating or permitting
a nuisance on a lot. Another provides that if a court proceeding is
“instituted in connection with the rights of enforcement and remedies
provided” in the CC&Rs, “the prevailing party or parties shall be entitled
to recover” their costs, expenses, and reasonable attorney fees.
¶2 Stephanie Burkett (“Burkett”) sued her next-door neighbors,
John and Anita Dryja (the “Dryjas”), alleging that their air conditioning unit
violated the anti-nuisance provision. The Dryjas prevailed at trial but
were denied their attorney fees. The superior court and the court of
appeals reasoned that, because the common law already prohibits
nuisances, Burkett’s nuisance claim against the Dryjas sounded in tort
rather than contract, and, therefore, the CC&Rs’ fee provision did not
apply.
¶3 We hold that a recorded anti-nuisance covenant like the one
here is a contractual obligation that one owner may enforce against another,
and that it remains enforceable even if the conduct it prohibits also
constitutes a tort. Accordingly, we further hold that the attorney fee
provision applies to an action to enforce the anti-nuisance provision.
Because Burkett instituted a court proceeding in connection with the
CC&Rs’ rights of enforcement and remedies, and the Dryjas prevailed, the
CC&Rs entitle the Dryjas to their reasonable attorney fees.
FACTUAL AND PROCEDURAL BACKGROUND
¶4 Burkett and the Dryjas own adjoining lots in Moondance
Estates, a Tucson subdivision governed by the Moondance Estate
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Opinion of the Court
Community Association, Inc. (the “Association”). 1 Their homes are “patio
homes” situated only a few feet apart. Both lots are subject to the
Association’s recorded CC&Rs. 2 Relevant to this case, § 10.3 of the CC&Rs
states: “If any Court proceedings are instituted in connection with the rights
of enforcement and remedies provided in this Declaration, the prevailing
party or parties shall be entitled to recover from the losing party or parties
any costs and expenses in connection therewith including reasonable
attorneys’ fees.”
¶5 In June 2021, the Dryjas replaced their air conditioning unit
with a new unit placed in a different position on their patio. Burkett
complained that she could hear noise from the new unit and feel its
vibrations inside her home, particularly in her primary bedroom. Efforts
to resolve the problem failed. Burkett also complained to the Association,
which, after investigating, concluded that the unit was properly installed
and was not objectionably loud, and declined to take further action.
¶6 Burkett then sued the Dryjas and the Association. As
relevant here, her second amended complaint alleged that: (1) the noise and
vibrations from the Dryjas’ unit constituted “a nuisance that is prohibited
by [§] 7.18 of the CC&R’s”; (2) the CC&Rs “constitute a contract between
Burkett, Dryja, and the Association”; and (3) the Dryjas breached the
CC&Rs by creating the nuisance and by failing to locate the unit as the
CC&Rs and the Association’s design guidelines required. Regarding the
Association, she alleged that it breached the CC&Rs by failing to enforce its
provisions against the Dryjas. Burkett also sought injunctive relief to
require the Dryjas to halt the noise and to remove, relocate, or replace the
unit, and for the Association “to honor and adhere to its governing
documents.” She also sought damages and attorney fees under A.R.S.
§ 12-341.01 and § 10.3 of the CC&Rs.
¶7 After a three-day bench trial, the superior court ruled for the
Dryjas and the Association on every count. The court acknowledged that
Burkett’s “concerns are not baseless,” but found “that although the [u]nit
1 Burkett brought this action as trustee of the Stephanie Rae Burkett
Revocable Trust dated January 28, 2011.
2 The governing instrument’s formal title is the Second Amended and
Restated Declaration of Protective Covenants, Conditions and Restrictions
for Moondance Estates.
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Opinion of the Court
makes annoying noise when heard within [Burkett]’s bedroom, such noise
does not constitute an actionable nuisance.” The court further found that
the noise did not violate the CC&Rs. The court also concluded that Burkett
failed to prove that either the Dryjas or the Association “breached any
contract or obligation they owe[d]” her.
¶8 The Dryjas and the Association each applied for attorney fees
under § 10.3. The superior court awarded the Association $60,000 for its
fees and costs, reasoning that Burkett’s claims against the Association
“were based on contract.” But the court denied the Dryjas’ request for fees
and limited them to their taxable costs. Although it “acknowledge[d] that
the CC&Rs create a contractual relationship among all homeowners within
the Association,” the court characterized Burkett’s claim against the Dryjas
as “essentially a nuisance claim which could have been asserted against the
[Dryjas] irrespective of the existence of the CC&Rs.”
¶9 Given how it characterized Burkett’s nuisance claim, the
superior court applied the “but-for” test as outlined in Sparks v. Republic
National Life Insurance Co., 132 Ariz. 529 (1982), and as applied in Ramsey Air
Meds, L.L.C. v. Cutter Aviation, Inc., 198 Ariz. 10 (App. 2000), to determine
whether the Dryjas were entitled to fees under § 12-341.01. Then,
reasoning that “the CC&Rs place no substantially greater duty on the
homeowners . . . to avoid creating nuisances than does the common law,”
the court concluded that the claim “arises out of tort and thus the Dryjas
are not entitled to attorney fees under A.R.S. § 12-341.01.” The Dryjas
appealed the denial of their fee request.
¶10 The court of appeals affirmed. Burkett as Tr. of Stephanie Rae
Burkett Revocable Tr. Dated Jan. 28, 2011 v. Dryja, 260 Ariz. 1, 6 ¶ 27 (App.
2025). The court reasoned that because the Dryjas’ “duty not to create a
nuisance arises from tort, Burkett’s lawsuit retained its character as a tort
claim regardless of the CC&Rs.” Id. at 2 ¶ 2. Although the court
recognized that § 10.3’s “in connection with” language is
“[a]rguably . . . broader than ‘arising out of,’” it deemed the difference
irrelevant because a tort claim is “linked, associated, and related to the
parties’ underlying duties to each other, not to enforcement of the CC&Rs.”
Id. at 4–5 ¶ 20. The court further concluded that the CC&Rs’ express
prohibition of nuisances was “a distinction without a difference” because
“[t]he contractual prohibition simply mirrors the parties’ tort duties,” and
“parties may not contract to create duties that already exist as a matter of
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Opinion of the Court
law.” Id. at 5 ¶ 22 (citing Travelers Ins. Co. v. Breese, 138 Ariz. 508, 511 (App.
1983)). Applying the § 12-341.01 “but-for” test as discussed in Sparks and
Ramsey, the court held that Burkett “sought to enforce the Dryjas’
underlying tort duties,” so the Dryjas were not entitled to fees. Id.
¶¶ 23–25.
¶11 We granted review because the enforceability of
anti-nuisance and fee-shifting provisions in recorded CC&Rs, which are
common in planned communities throughout Arizona, is a recurring issue
of statewide importance. We have jurisdiction under article 6, section 5(3)
of the Arizona Constitution.
DISCUSSION
¶12 We review de novo the interpretation of CC&Rs, which are
contracts. See Powell v. Washburn, 211 Ariz. 553, 555–56 ¶ 8 (2006) (“A deed
containing a restrictive covenant that runs with the land is a contract.”); Am.
Power Prods., Inc. v. CSK Auto, Inc., 242 Ariz. 364, 367 ¶ 12 (2017) (“We
review de novo issues of statutory application and contract
interpretation.”). We likewise review de novo whether a contractual fee
provision applies to a particular claim. Sirrah Enters., LLC v. Wunderlich,
242 Ariz. 542, 544 ¶ 7 (2017). As with other contracts, we interpret CC&Rs
according to the plain and ordinary meaning of their words, read in context.
See Henderson v. Moskowitz, 261 Ariz. 8, 10–11 ¶ 10 (2025); Duffy v. Sunburst
Farms E. Mut. Water & Agric. Co., 124 Ariz. 413, 416 (1979) (“The words in a
restrictive covenant must be given their ordinary meaning.”); Apollo Educ.
Grp., Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, 250 Ariz. 408, 411 ¶ 11
(2021) (noting that we interpret contract terms in context). And “[c]lear
and unambiguous restrictive covenants are . . . enforced according to their
express terms.” Wilson v. Playa de Serrano, 211 Ariz. 511, 514 ¶ 10 (App.
2005).
¶13 The three questions on which we granted review, quoted
verbatim, overlap:
1. Where a written fee-shifting term in recorded CCRs
requires an award of attorney’s fees to all prevailing parties
in any Court Proceedings instituted in connection with the
rights of enforcement and remedies under CCRs, is the term
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Opinion of the Court
enforceable as to all prevailing parties in an enforcement
action?
2. Is a written anti-nuisance term in the recorded CCRs of an
Arizona HOA enforceable in contract, where the prevailing
party is a next-door neighbor of the losing party and therefore
has a pre-existing duty in tort?
3. Did the Court of Appeals err in holding that a pre-existing
tort duty renders unenforceable a written contractual term
containing the same duty?
Because the answer to the first question rests on answers to the second and
third, we begin with the CC&Rs themselves and the nature of the
obligations created by §§ 10.3 and 7.18. We then explain why § 12-341.01
and the cases applying it do not govern the Dryjas’ fee request, and we
conclude by applying § 10.3 according to its terms.
A. The CC&Rs Are an Enforceable Contract Among the Owners
¶14 Burkett argues that, because the CC&Rs are a contract
between the owners as a whole and each individual owner, they are “not,
in a direct sense, a contract between Burkett and the Dryjas.” In her view,
the contractual rights the CC&Rs create belong to the Association and the
community of owners, so that only her claims against the Association arose
from the CC&Rs. She further argues that because she and the Dryjas
lacked a contractual relationship, her claims against them sound only in
tort. The text of the CC&Rs forecloses this argument.
¶15 Section 10.2 states that each provision of the CC&Rs is
“deemed incorporated in each deed” conveying an interest in a lot and,
upon an owner’s acceptance of title, is “deemed accepted, ratified, adopted
and declared as a personal covenant of such Owner.” It further provides
that each provision “shall be deemed a personal covenant to, with and for the
benefit of the Association and with and for the benefit of any other Owner.”
(Emphasis added.) And “[a] deed containing a restrictive covenant that
runs with the land is a contract.” Powell, 211 Ariz. at 555 ¶ 8. An owner
who accepts a deed to a lot conveyed subject to recorded restrictions
becomes bound by them. Duffy, 124 Ariz. at 416. The CC&Rs, therefore,
are a contract between Burkett and the Dryjas as much as they are between
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Opinion of the Court
the Association and Burkett and the Dryjas individually. Turning to the
provisions at issue here, the mutual obligations between Burkett and the
Dryjas are clear.
¶16 Section 10.3 provides in relevant part:
In addition to any other remedies herein provided, each
provision of this Declaration with respect to an Owner, the Unit
Estate of an Owner and the Association shall be enforceable by
Declarant, the Association or any Owner by a proceeding for a
prohibitive or mandatory injunction or by a suit or action to
recover damages . . . . If any Court proceedings are instituted
in connection with the rights of enforcement and remedies
provided in this Declaration, the prevailing party or parties
shall be entitled to recover from the losing party or parties any
costs and expenses in connection therewith including
reasonable attorneys’ fees.
(Emphasis added.)
The anti-nuisance provision, § 7.18, states:
No Owner or Resident shall create or suffer to exist any use
or operation on a Lot which is a public or private nuisance,
nor shall any music, noise or sound that is objectionable due
to intermittent beat, frequency, shrillness or loudness be
allowed to emanate from or to exist within or around a Lot.
No Owner or Resident shall allow the use upon a Lot of an
exterior loud speaker or any other sound projection device
emitting voices for a siren, bull horn or similar noise device
unless used solely for security and alarm purposes.
¶17 Section 7.18 binds every “Owner.” Section 10.2 makes that
obligation a personal covenant of each owner that runs “for the benefit of
any other Owner.” And § 10.3 authorizes “any Owner” to enforce “each
provision” of the CC&Rs “by a proceeding for a prohibitive or mandatory
injunction or by a suit or action to recover damages.” The burdens and
benefits of § 7.18 are therefore reciprocal. “Each lot . . . is not merely
burdened by a restriction but it is also clothed with the benefit which is
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Opinion of the Court
enforceable against every other lot or parcel.” Powell, 211 Ariz. at 557–58
¶ 16 (quoting Wallace v. St. Clair, 127 S.E.2d 742, 751 (W. Va. 1962)).
¶18 Thus, as an “Owner,” Burkett held a contractual right to
enforce § 7.18 against the Dryjas, and the Dryjas, as “Owner[s],” owed her
a contractual obligation to comply with § 7.18. Burkett’s complaint alleged
as much, supra ¶ 6, and the superior court recognized “that the CC&Rs
create a contractual relationship among all homeowners within the
Association.”
¶19 The court of appeals was reluctant to read § 10.3 to reach
Burkett’s claim because “individual homeowners are rarely involved in
drafting CC&Rs,” and it declined to conclude that “such a reordering of
their rights occurred through such indirect language.” Burkett, 260 Ariz.
at 5 ¶ 21. But nothing about §§ 7.18, 10.2, or 10.3 is indirect, and enforcing
them does not reorder anyone’s rights. Each owner accepted those
covenants with title to the owner’s lot. See Duffy, 124 Ariz. at 416. And
unlike the new affirmative obligations an association sought to impose in
Kalway v. Calabria Ranch HOA, LLC, 252 Ariz. 532, 538 ¶ 14 (2022), without
notice in the original declaration, the anti-nuisance and fee-shifting
provisions here appear in the recorded instrument itself. Every owner
therefore took title with notice of: (1) the obligation to refrain from
nuisances; (2) the authority to enforce the provision; and (3) the potential
cost of failing to prevail in litigating its enforcement.
B. A Preexisting Tort Duty Does Not Render § 7.18 Unenforceable
¶20 As noted, the court of appeals concluded that § 7.18’s
prohibition of nuisances was “a distinction without a difference” because it
“simply mirrors the parties’ tort duties” and “parties may not contract to
create duties that already exist as a matter of law.” Burkett, 260 Ariz. at 5
¶ 22. Burkett defends that conclusion, arguing that because § 7.18 “simply
reiterates a preexisting legal duty,” it is “essentially illusory” and
unsupported by consideration. See Restatement (Second) of Contracts § 73
(Am. L. Inst. 1981). We disagree for three reasons.
1. The preexisting duty rule does not apply
¶21 First, the preexisting duty rule does not invalidate § 7.18, and
the court of appeals’ reliance on Breese is misplaced. That rule concerns
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whether a promise is supported by consideration: “A promise lacks
consideration if the promisee is under a preexisting duty to
counter-perform.” Breese, 138 Ariz. at 511. In Breese, an injured worker
signed an “Election of Remedies” agreement with a workers’ compensation
carrier that was little more than “an attempt to incorporate the provisions
of A.R.S. § 23-1023” into a written document. Id. at 510. Because the
agreement “set[] forth no duties, responsibilities or undertakings by” the
carrier, and the carrier gave nothing beyond what the statute already
required of it, the agreement failed for lack of consideration. Id. at 511.
¶22 The CC&Rs bear no resemblance to the agreement in Breese.
They are a comprehensive instrument that governs, among other things,
assessments, landscaping, irrigation, and the size of homes, and each
owner’s acceptance of these obligations is exchanged for the reciprocal
obligations of every other owner and of the Association. Thus, the CC&Rs
are distinguishable from the contract in Breese because they impose
exchanged-for duties between “Owners,” whereas the carrier in Breese gave
nothing.
¶23 Furthermore, Arizona law does not require separate
consideration for each of the contract’s terms. “The fact that part of what
is bargained for would not have been consideration if that part alone had
been bargained for does not prevent the whole from being consideration.”
Restatement § 80(2); see also Restatement § 79 cmt. c (noting that courts do
not ordinarily inquire into the adequacy of consideration and that an
agreement may be a mix of both a bargain and a gift); see generally Demasse
v. ITT Corp., 194 Ariz. 500, 504–05 ¶¶ 12–16 (1999) (discussing changes to
specific terms of an at-will employment contract). Breese did not hold
otherwise, and it provides no support for excising a single covenant from
an otherwise valid and mutually binding declaration.
¶24 Burkett’s reliance on § 73 of the Restatement fares no better.
Under that section, “[p]erformance of a legal duty owed to a promisor
which is neither doubtful nor the subject of honest dispute is not
consideration . . . .” Restatement § 73. But the requirement of
consideration is satisfied “if the consideration includes a performance in
addition to or materially different from the performance of the duty.” Id.
§ 73 cmt. b. The consideration each owner receives for accepting § 7.18 is
not merely another owner’s compliance with § 7.18. Rather, it is the full
set of reciprocal obligations the CC&Rs impose, most of which no other law
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Opinion of the Court
requires. And, as we next explain, § 7.18 itself imposes obligations that
differ from, and run to more persons than, the common law duty to refrain
from creating a nuisance.
2. Section 7.18 extends beyond the common law duty
¶25 Second, § 7.18 does not “simply mirror[]” the Dryjas’ tort
duty. At common law, “[a] private nuisance is strictly limited to an
interference with a person’s interest in the enjoyment of real property.”
Armory Park Neighborhood Ass’n v. Episcopal Cmty. Servs. in Ariz., 148 Ariz. 1,
4 (1985). A public nuisance “encompasses any unreasonable interference
with a right common to the general public.” Id.
¶26 Section 7.18, by contrast, is a covenant each owner makes,
which, under § 10.2, is “for the benefit of the Association and . . . for the
benefit of any other Owner,” and which, under § 10.3, may be enforced by
the Association or “any Owner.” (Emphasis added.) As drafted, § 7.18
permits any owner to bring an action based on a private nuisance
committed against any other owner. Section 7.18 thus transforms a
common law duty owed to neighbors who are actually harmed or, as to a
public nuisance, who suffer a special injury different in kind from the
public’s, into a subdivision-wide obligation owed to every “Owner” and to
the Association.
¶27 Moreover, the text of § 7.18 encompasses conduct the
common law does not necessarily reach. It forbids owners and residents
from not only “creat[ing]” a nuisance but also from “suffer[ing] to exist”
any use or operation on a lot that is a public or private nuisance. And it
separately forbids allowing “any music, noise or sound that is objectionable
due to intermittent beat, frequency, shrillness or loudness” to “emanate
from or to exist within or around a Lot.” Consistent with that text, the
superior court separately considered whether the unit was “objectionably
loud” under § 7.18 and whether it was an actionable nuisance.
¶28 Additionally, § 7.18 categorically prohibits exterior
loudspeakers and similar sound projection devices except for security and
alarm purposes, a restriction that Burkett acknowledges “add[s] specific
duties” beyond the common law. We need not decide the precise extent
to which § 7.18’s noise standard departs from the common law standard for
nuisance. It is enough that the covenant is not coextensive with the Dryjas’
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Opinion of the Court
tort duty. And, as explained next, even if the duty were coextensive in the
specific instance of the harm Burkett alleged as a next-door neighbor, § 7.18
is still enforceable.
3. Overlapping contract and tort duties may coexist
¶29 Third, and more fundamentally, even if § 7.18 entirely
overlapped with the common law duty, the overlap would not render the
covenant unenforceable. Nothing in our law prevents parties from
promising one another to refrain from conduct that the law independently
prohibits with the requisite consideration. See supra ¶¶ 21–24. The same
conduct may breach a contractual promise and a duty imposed by law, and
it may give rise to claims in both contract and tort. See Sirrah, 242 Ariz.
at 545 ¶ 10 (“[N]egligent construction of a residence can simultaneously
support contract damages for breach of the Implied Warranty and tort
damages.”). 3
¶30 In Sirrah, we addressed the implied warranty of
workmanship and habitability. Id. at 543–44 ¶ 1. We noted it was
“imposed by law,” and because the law imputed it into the parties’
construction contract, it was “a term of the contract.” Id. at 543 ¶ 1.
Accordingly, a claim for its breach arose “from the contract” to trigger the
parties’ contractual fee provision. Id. at 543–44 ¶ 1. And we rejected the
argument that Barmat v. John & Jane Doe Partners A–D, 155 Ariz. 519 (1987)
precluded a fee award, explaining that Barmat “does not apply to contract
claims.” Sirrah, 242 Ariz. at 546 ¶ 16. If a duty that the law imputes into
a contract is a contract term enforceable under a contractual fee provision,
then an express, recorded covenant that each owner accepted with title is
no less a contractual obligation, regardless of any overlap with tort law.
¶31 Our freedom-of-contract jurisprudence calls for no less.
“The freedom to contract has long been considered a ‘paramount public
policy’ under our common law that courts do not lightly infringe.”
Zambrano v. M & RC II LLC, 254 Ariz. 53, 58 ¶ 10 (2022) (quoting Consumers
Int’l, Inc. v. Sysco Corp., 191 Ariz. 32, 34 (App. 1997)). And “[o]ur law
3 Further, the CC&Rs contemplate that owners’ obligations will coexist
with those imposed by law. Section 10.4 provides that “no provision
hereof shall be construed to excuse any person from observing any law or
regulation of any governmental body having jurisdiction over the Project.”
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generally presumes . . . that private parties are best able to determine if
particular contractual terms serve their interests.” 1800 Ocotillo, LLC v.
WLB Grp., Inc., 219 Ariz. 200, 202 ¶ 8 (2008). Nevertheless, “courts will
refuse to enforce a contract term if legislation prohibits the term or when an
identifiable public policy clearly outweighs enforcement.” Zambrano,
254 Ariz. at 58 ¶ 11. Consistent with these principles, we have recognized
that parties “may otherwise specify remedies that modify common law
recovery.” Flagstaff Affordable Hous. Ltd. P’ship v. Design All., Inc., 223 Ariz.
320, 326 ¶ 29 (2010) (explaining that parties to a construction contract may
agree to preserve tort remedies for purely economic loss or otherwise
specify remedies).
¶32 The CC&Rs reflect exactly that kind of choice. They adopt a
covenant governing nuisance-type conduct throughout the subdivision,
and they specify the remedies available to enforce it: injunctive relief,
damages, and fee shifting. No statute prohibits such a covenant, and
Burkett identifies no public policy that outweighs its enforcement. To the
contrary, a fee-shifting provision that applies to all prevailing parties both
permits every owner to insist on compliance with meritorious claims and
deters claims that lack merit.
¶33 The court of appeals therefore erred in treating the overlap
between § 7.18 and the common law duty as rendering § 7.18 unenforceable
as a contractual obligation between Burkett and the Dryjas.
C. Section 12-341.01 and Its “But-For” Test Do Not Govern
¶34 The determination of each court below that the Dryjas were
not entitled to attorney fees relied on cases applying § 12-341.01(A), which
provides that “[i]n any contested action arising out of a contract, express or
implied, the court may award the successful party reasonable attorney
fees.” In Sparks, this Court developed a test for determining when such
claims “aris[e] out of a contract” under the statute because tort claims are
often asserted between parties who also have a contract. 132 Ariz. at 543.
The Court concluded that fees are available when “the cause of action in
tort could not exist but for the breach of the contract.” Id. Applying that
test in Sparks, the Court held that a claim for an insurer’s bad faith arises
out of contract because “the tort of bad faith cannot be committed absent
the existence of an insurance contract and a breach thereof.” Id. at 544.
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Opinion of the Court
¶35 By contrast, we concluded in Barmat that a legal malpractice
claim does not arise from a contract. 155 Ariz. at 522–23. We reached this
conclusion because the duties arising from the attorney–client relationship,
like those arising from “other special relationships long recognized at
common law,” do not depend on a contract. Id. Applying the same
“but-for” test, the court of appeals concluded in Ramsey that a negligence
claim did not arise out of contract because “[t]he test is whether the
defendant would have a duty of care under the circumstances even in the
absence of a contract.” 198 Ariz. at 16 ¶ 27.
¶36 The “but-for” test is derived from the construction of
§ 12-341.01(A)’s phrase “arising out of a contract.” It reflects our
conclusion that the Legislature “did not intend that every tort case would
be eligible for an award of fees whenever the parties had some sort of
contractual relationship.” Barmat, 155 Ariz. at 524. But Sparks, Barmat,
and Ramsey each addressed a discretionary request for fees under the
statute, and all lacked a specific fee-shifting agreement. As Burkett’s
counsel acknowledged at oral argument, that is why § 12-341.01 was
considered in those cases. Here, the Dryjas sought fees under § 10.3—an
express contractual fee provision.
¶37 Section 12-341.01(A) itself directs that it “shall not be
construed as altering, prohibiting or restricting present or future contracts
or statutes that may provide for attorney fees.” The statute, then, “does
not alter the parties’ mandatory fee provision.” Sirrah, 242 Ariz. at 547
¶ 23. And “it is well-settled in Arizona that ‘[c]ontracts for payment of
attorneys’ fees are enforced in accordance with the terms of the contract.’”
McDowell Mountain Ranch Cmty. Ass’n v. Simons, 216 Ariz. 266, 269 ¶ 14
(App. 2007) (quoting Heritage Heights Home Owners Ass’n v. Esser, 115 Ariz.
330, 333 (App. 1977)).
¶38 Accordingly, when parties have agreed to a fee provision, the
question is not whether a claim “aris[es] out of a contract” within the
meaning of § 12-341.01(A), but whether the claim falls within the terms of
the parties’ agreement. See Sirrah, 242 Ariz. at 547 ¶ 23.
¶39 The court of appeals acknowledged that § 10.3, not
§ 12-341.01, governed the Dryjas’ request, but it found the statutory cases
“instructive” because “we read contracts as incorporating common-law
principles, such as the distinction between contract and tort.” Burkett,
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260 Ariz. at 4 ¶ 19. That reasoning improperly substituted a statutory test
for express contractual terms.
¶40 Here, the CC&Rs do not award fees in actions “arising out of
a contract.” They award fees in proceedings “instituted in connection with
the rights of enforcement and remedies provided in this Declaration.” The
two phrases appear in different provisions, serve different purposes, and
carry different meanings, as the court of appeals itself acknowledged was
“[a]rguably” so. Id. at 4–5 ¶ 20. And the common law’s distinction
between contract and tort does not forbid parties from contracting about
conduct that may also constitute a tort. Supra ¶¶ 29–33. Importing the
statutory “but-for” test into § 10.3 incorrectly rewrote the parties’
agreement. See D.M.A.F.B. Fed. Credit Union v. Emps. Mut. Liab. Ins. Co.,
96 Ariz. 399, 403 (1964) (stating that where a contract’s provisions “are plain
and unambiguous upon their face, they must be applied as written, and the
court will not . . . add something to the contract which the parties have not
put there”). We now turn back to § 10.3’s text.
D. Section 10.3 Entitles the Dryjas to Their Attorney Fees
¶41 As noted, the text of § 10.3 applies: (1) when “any [c]ourt
proceedings are instituted”; (2) “in connection with the rights of
enforcement and remedies provided in” the CC&Rs; and (3) when “the
prevailing party or parties” is entitled to “recover from the losing party or
parties.” Burkett’s suit satisfies each element.
¶42 Burkett sued the Dryjas as an “Owner” for violating § 7.18
and for breaching the CC&Rs. She sought a prohibitive or mandatory
injunction and damages—the remedies § 10.3 enumerates. And she
requested her own attorney fees under § 10.3. Thus, she instituted a court
proceeding, and she did so “in connection with” the CC&Rs’ rights of
enforcement and remedies. “The word ‘connection’ is commonly defined
as a link, an association or a relationship.” Cal. Cas. Ins. Co. v. Am. Fam.
Mut. Ins. Co., 208 Ariz. 416, 419 ¶ 8 (App. 2004). Here, Burkett’s suit did
not merely relate to the CC&Rs; it invoked the very rights of enforcement
and remedies § 10.3 provides.
¶43 The Dryjas, in turn, are “prevailing part[ies ].” The superior
court entered judgment in their favor on every count Burkett asserted
against them. Nothing in § 10.3 limits the recovery of fees to only the
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BURKETT V. DRYJA
Opinion of the Court
Association. To the contrary, the provision entitles “the prevailing party
or parties” to recover from “the losing party or parties.” This language
expressly contemplates enforcement proceedings involving multiple
litigants on either side. Reading § 10.3 to award fees to some prevailing
parties but not others would disregard those terms. See Antonin Scalia &
Bryan A. Garner, Reading Law: The Interpretation of Legal Texts 174 (2012) (“If
possible, every word and every provision is to be given effect . . . .”). And
because § 10.3 provides that the prevailing parties “shall be entitled” to fees,
an award is mandatory rather than discretionary. See Sirrah, 242 Ariz.
at 547 ¶ 23.
¶44 Burkett contends that the phrase “in connection with the
rights of enforcement and remedies” is “not necessarily much broader”
than “arising from this agreement,” and that the provision reaches only
“actions concerning the rights and remedies created by the CC&Rs.” Even
accepting that reading, her action qualifies. Section 7.18 is a right created
by the CC&Rs that “any Owner” may enforce, and Burkett sued to enforce
it. Burkett’s argument to the contrary depends on the premise that § 7.18
creates no rights beyond those that exist under Arizona law, which is a
premise we have rejected. See supra ¶¶ 20–33.
¶45 We do not suggest that § 10.3 reaches every lawsuit between
owners that merely touches upon the CC&Rs, and we need not define its
outer limits here. Nor must we decide the Dryjas’ alternative argument
that they are entitled to fees because Burkett’s claims against the
Association were brought to enforce the CC&Rs. It is enough that Burkett
instituted a proceeding against the Dryjas to enforce § 7.18 through the
rights and remedies § 10.3 provides, and the Dryjas prevailed. Under the
plain terms of § 10.3, the Dryjas are entitled to their reasonable attorney
fees.
¶46 In sum, we answer each question presented in the affirmative.
A written anti-nuisance covenant in a recorded declaration of CC&Rs is
enforceable in contract between neighbors even though the common law
also imposes a duty not to create a nuisance. The court of appeals erred in
holding that the preexisting tort duty rendered that covenant
unenforceable. And § 10.3 is enforceable according to its terms as to all
prevailing parties in a court proceeding instituted in connection with the
CC&Rs’ rights of enforcement and remedies.
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BURKETT V. DRYJA
Opinion of the Court
E. Attorney Fees and Costs on Appeal
¶47 The Dryjas request their attorney fees and costs incurred on
appeal and in this Court under § 10.3 and Arizona Rule of Civil Appellate
Procedure 21. Because they are prevailing parties in a proceeding
instituted in connection with the CC&Rs’ rights of enforcement and
remedies, we grant their request for reasonable attorney fees and costs
upon their compliance with Rule 21. We deny Burkett’s request for costs
under A.R.S. § 12-341 because she is not the successful party.
CONCLUSION
¶48 We vacate the court of appeals’ opinion. We reverse the
portion of the superior court’s judgment denying the Dryjas’ request for
attorney fees under § 10.3, and we remand to the superior court to
determine the reasonable attorney fees to which the Dryjas are entitled.
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