Modular Mining Systems, Inc. v. Jigsaw Technologies, Inc
In Modular Mining Systems, Inc. v. Jigsaw Technologies, Inc., 221 Ariz. 515, PP 22-23, 212 P.3d 853, 859-60 (App. 2009), the Court specifically noted that the "arising out of" analysis is complex, and the Court relied on the fact that the claims were interwoven in upholding the fee award.
The Court cited several cases from foreign jurisdictions that primarily found attorney fees incurred in defending or prosecuting non-contract claims can be awarded when these claims are so factually connected to a contract claim that they require the same work that is already necessary for the defense or prosecution of the contract claim alone. Id. n.10.
Allowing an award of fees in this situation better serves the legislative intent in 12-341.01 than denying contract-related fees because they are interwoven with non-contract fees.