the City and the County pursuant to § 12-349(A)(1), which mandates an award of fees against a party who brings a claim without substantial justification. A claim is “without substantial justification” if it “constitutes harassment, is groundless and is not made in good faith.” § 12-349(F). Each of these three elements must be present and proven by a preponderance of the evidence, with the absence of even one element rendering the statute inapplicable. City of Casa Grande v. Ariz. Water Co., 199 Ariz. 547, 555, ¶ 27, 20 P.3d 590, 598 (App. 2001). ¶ 17 Arizona Revised Statutes § 12-350 (1992), which governs attorneys’ fees awarded pursuant to § 12-349, requires the trial court to “set forth specific reasons for the award.” State v. Richey, 160 Ariz. 564, 565, 774 P.2d 1354, 1355 (1989) (<HOLDING>). However, the failure of a party to object to
holding the trial courts simple finding of frivolous to be insufficient to justify an award holding that a finding of plaintiffs bad faith is not a prerequisite to the trial courts exercise of discretion to award fees holding trial courts finding that claim was frivolous insufficient to meet statutory requirement that claim constitutes harassment is groundless and not made in good faith holding the trial courts findings were insufficient to support a lumpsum award holding evidence insufficient to support finding of implied contract