Arizona Laws 29-3806. Proceeds and expenses; voluntary dismissal or settlement
A. Except as otherwise provided in subsection B or C of this section or section 29-3807, both of the following apply:
Terms Used In Arizona Laws 29-3806
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Plaintiff: The person who files the complaint in a civil lawsuit.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
1. Any proceeds or other benefits of a derivative action, whether by judgment, compromise or settlement, belong to the limited liability company and not to the plaintiff.
2. If the plaintiff receives any proceeds, the plaintiff shall remit them immediately to the company.
B. If a derivative action is successful, in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney fees and costs, from the recovery of the limited liability company.
C. If the court finds that the derivative action was brought without reasonable cause, the court may require the plaintiff to pay to the defendants the defendants’ reasonable expenses, including reasonable attorney fees and costs, incurred in the defense of the action.
D. A derivative action on behalf of a limited liability company may not be voluntarily dismissed or settled without the court’s approval.