Can I Recover My Attorney’s Fees in My Lawsuit with Unifund (or Portfolio Recovery Associates, or CACH, LLC, or Cavalry SPV) ?

Cost is always one of the main concerns when it comes to deciding whether or not you will fight your debt collection lawsuit with Unifund (or Portfolio Recovery Associates, or CACH, LLC, or Cavalry SPV).  Most people being sued by a debt collector are tight on cash as it is and the last thing they need is another bill from a lawyer.  On the other hand you don’t want to lose your case and face wage garnishment or bank levies.

In Arizona the law makes this decision a little bit easier in that in any civil lawsuit where the underlying claim is based upon either a written or oral contract the winning party is entitled to recover the attorney’s fees and costs expended in the case.

Debt buyer cases like yours have claims that are based upon a contract.  Unifund (or any other debt buyer) is likely asserting that there was an original contract between you and the creditor they allege to have purchased the account from from.  That alone is enough to trigger the Arizona provision that allows the winning party to seek both attorney’s fees and the costs (filing fees, etc.).

Note that the language of the Arizona statute does allow the judge to have some discretion.  The judge has the power to award you every penny you paid in legal fees or to award you nothing at all.  The judges does not, however, have discretion when it comes to court costs.  If you win the other side will have to pay your filing fees.

You Must Have a Final Determination of Your Case in Order to Seek Attorney’s Fees Under Arizona Law

One catch here is that you can only seek to have your legal fees reimbursed if there is a final determination in your case by the court.  This means that you must either win on summary judgment or after a trial.  If you settle your case out of court or if you participate in mediation the court will not award you your legal fees.

This Works Both Ways

It is also important to understand that this law works both ways.  If you go to trial and lose, Unifund (or any other debt buyer) can also ask the court to enter a judgment against you for their attorney’s fees.

Most lawyers (myself included) will require that you pay at least part of your legal fees upfront prior to the beginning of representation in your case.  However under Arizona law there is a chance that you could have these funds reimbursed if you win and if the judge grants your motion.