Medical Protective Company v. Herman Pang

ORDER

Defendant-Appellant’s request for publication is granted. The Memorandum filed June 26, 2013, and appearing at 2013 WL 3213349 , is withdrawn and the authored Opinion filed concurrently with this order is substituted in its stead.

OPINION

Dr. Herman Pang appeals from the district court’s denial of his motion for costs pursuant to Federal Rule of Civil Procedure 54(d) (“Rule 54(d)”), and his two motions for attorney’s fees pursuant to Ariz. Rev.Stat. § 12-341.01 (“Section 12-341.01”). Rule 54(d) mandates the award of costs to the “prevailing party.” Section 12-341.01 provides district courts with discretion to award attorney’s fees to the “successful party” in actions arising from contract. Pang argues that he is entitled to costs as the “prevailing party” under Rule 54(d), and entitled to attorney’s fees as the “successful party” under Section 12-341.01.

We conclude that the district court properly denied Pang’s motion for costs under District of Arizona Local Rule 54.1(d), but that the court abused its discretion by failing to apply the correct standard under Arizona law when it held that Pang was not entitled to attorney’s fees as the “successful party.” Accordingly,…