(1) Except as provided in Subsection (3), the court shall award reasonable attorney fees to a prevailing party in a civil action if the court determines that: (a) the nonprevailing party's civil action, or defense to the civil action, is frivolous or has no reasonable basis in law or fact; and (b) the nonprevailing party brought the civil action, or defense to the civil action, to harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse the judicial process. (2) Except as provided in Subsection (3), the court shall award reasonable attorney fees to a party in a civil action if: (a) the party incurred attorney fees in defense of a motion brought by the opposing party; and (b) the court determines that: (i) the opposing party's motion is frivolous or has no reasonable basis in law or fact; and (ii) the opposing party brought the motion to harass, cause unreasonable delay, needlessly increase the cost of litigation, or abuse the judicial process. (3) The court, in the court's discretion, may award no fees or limited fees against a party under Subsection (1) or (2) if the court: (a) finds the party has filed an affidavit of indigency under Section 78A-2-302 in the action before the court; or (b) enters in the record the reason for not awarding fees under the provisions of Subsection (1) or (2).
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