Hatch Cos. Contracting, Inc. v. Arizona Bank
In Hatch Cos. Contracting, Inc. v. Arizona Bank, 170 Ariz. 553, 826 P.2d 1179 (App. 1991), the Court was faced with a situation similar to that in Wyatt.
Hatch, however, is distinguishable on the grounds that the client was aware that the attorney had filed the lis pendens. Id. at 559, 826 P.2d at 1185.
When it is determined that a client knows of the filing of a groundless document, an attorney's knowledge of the impropriety of the filing can be imputed to that client. Id.
The focus then becomes whether an attorney has the required knowledge to impose liability under the statute. Id.
In Hatch, the Court concluded that the appellant client failed to prove that the attorney had no reason to know that the filing was improper. Id.