In a diversity action, in what circumstances can the opposing parties claim attorney's fees for the prevailing party?

Both sides seek attorney's fees for the prevailing party. In a diversity action, the question of attorney's fees is governed by state law. Klopfenstein v. Pargeter, 597 F.2d 150, 152 (9th Cir.1979). Alaska Appellate Rule 508(e) provides in relevant part that "fees may be allowed in an amount to be determined by the court.... If the court determines that an appeal or cross-appeal is frivolous or that it has been brought simply for purposes of delay, actual attorney's fees may be awarded to the appellee or cross-appellee." Because of the novelty of the question of law raised at the time of this appeal, neither party's position can be considered frivolous. The request for attorney's fees for the prevailing party is therefore denied.