7-G Ranching Company v. Stites

419 P.2d 358, 4 Ariz. App. 228
CourtCourt of Appeals of Arizona
DecidedOctober 25, 1966
Docket2 CA-CIV 243
StatusPublished
Cited by10 cases

This text of 419 P.2d 358 (7-G Ranching Company v. Stites) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
7-G Ranching Company v. Stites, 419 P.2d 358, 4 Ariz. App. 228 (Ark. Ct. App. 1966).

Opinion

HATHAWAY, Judge.

This is an appeal from a summary judgment in favor of plaintiff-appellee Stites against defendant-appellant 7-G Ranching Company enforcing a bonus provision of an employment contract between the parties.

In August 1961 7-G Ranching Company, acting through its president, Lloyd Golder, III, was promoting a real estate development north of Tucson. As part of this development, the construction of a large dam was contemplated and the appropriation of water for this dam required various permits from certain state agencies.

Appellee, Stites, wrote a letter addressed to Golder on August 22, 1961, which became the contract for the employment of Stites when the appellant by Mr. Golder’s actions approved its terms. The contents of that letter, Exhibit A annexed to the complaint, are as follows:

“Thank you very much for the luncheon at the Saddle & Sirloin last Monday. I believe everything concerning our employment relationship was clarified—very satisfactorily, I might add.
“It is my understanding I am to be in your employ on a half-time (approximately 20 hours per week) basis and that the compensation for this employment will be $500.00 per month.
“Also, that this arrangement shall be for an approximate twelve month period, or *230 at such time as my services are required on a full-time basis; full-time employment compensation shall be $1,000.00 per month.
“In addition, on out-of-town trips, use of my car shall be compensated for at .100 per mile; other expenses to be reimbursed according to actual expense account submitted.
“In exchange for the above, I intend to render conscientious, diligent, efficient services to the limit of my ability on projects whatsoever assigned to me by you.
“Regarding the ‘bonus’ we discussed: It is my understanding I am to be deeded land whose value equals $12,000.00 (one year’s full-time salary) on successfully promoting Golder Dam and after the permit for the Dam is issued.
“Should, perchance, the permit not be approved, it is my understanding I am to be compensated for my time and expenses, only. * (These expenses are not to exceed the amount of $500.00. LWGIII).
“As you may easily determine, I am quite enthusiastic over the possibilities of our association. Thank you for the opportunity.”

Stites sued the appellant for breach of contract, alleging performance of the contract terms on his part and failure of performance on appellant’s part. In its verified answer, 7-G Ranching Company denied the following: That Stites performed according to the contract, that the permit for the dam was issued June 25, 1962, and that appellant’s failure to convey the land to Stites resulted in damage of $12,000 plus six per cent interest. Failure of consideration and failure of performance were affirmatively pleaded by the appellant.

In answering appellant’s interrogatories, Stites named 24 persons he had contacted in promoting Golder Dam and set forth the nature of his conversations with them. At a hearing of objections to answers to interrogatories and requests for admissions, the court denied appellant’s objections to request for admissions 1 B and 2 B. Request for admission 2 B was :

“That the ‘permit for the Dam’ referred to in Exhibit ‘A’ had been issued.”

In response to the court’s ruling, the appellant filed a supplementary answer to appellee’s request for admissions denying 1 B, but neither admitted nor denied 2 B. Appellee contends that the issuance of the permit referred to in the contract is deemed admitted, because appellant failed to deny request 2 B in his supplementary answer. Apparently, appellant concedes this for he does not argue with appellee’s conclusion. In any event, it is not a critical point in disposing of this case.

Stites filed a motion for summary judgment. The memorandum appended to the affidavit supporting his motion makes reference to answers to interrogatories and to portions of Stites’ deposition showing his conduct relative to performance of the contract. Appellant responded with an affidavit by Golder setting forth the following: That Stites had failed to perform matters that he had agreed to perform, that he failed to perform matters delegated by the officers of the corporation, and that the various permits were obtained without Stites’ services.

After the motion for summary judgment was granted, the appellant moved for a rehearing of the motion which was granted. 1 Perhaps in view of the oft repeated admonition that a motion for summary judgment should be cautiously granted, the trial court granted a rehearing of the motion and at the rehearing considered a second affidavit of Golder. In the second affidavit, Golder stated that the contract contemplated an employment relationship for a year, that the “bonus” paragraph con *231 templated that Stites would work on other projects as well as the Golder Dam project, that Stites would speak to all objecting parties seeking their support of the Golder Dam project, that he would determine the merit or basis of their objections and that Stites would do investigative work for the hearing. Golder also stated that Stites did not perform any of the aforementioned duties and that “the issuance of a permit determined only the time of payment assuming that all the services promised to be performed were, in fact, performed.”

In determining whether there is a genuine issue as to a material fact, we must view the record in a light most favorable to the party opposing the motion. Allied Mutual Insurance Company v. Peck, 3 Ariz. App. 582, 416 P.2d 1003 (1966).

We believe that a dispute over a genuine issue of fact existed. Appellant insists that the bonus provision of the contract is ambiguous. Appellee disagrees. The bonus provision seems ambiguous in many respects —What was the time of performance? What permit determined the time for payment ? What performance was contemplated by “successfully promoting Golder Dam”? Golder’s second affidavit raises at least one disputed fact equally as specific as the moving party’s facts concerning the length of service contemplated by the parties in regard to the bonus provision. Wakeham v. Omega Construction Company, 96 Ariz. 336, 395 P.2d 613 (1965). This provision of his affidavit provides:

“2. That the agreement in question in the above captioned cause of action dated August 22, 1961, contemplated as far as Fred Stites and Lloyd Golder as President of 7-G Ranching Company were concerned an employment relationship covering one year.”

The appellant contends the terms are indefinite and ambiguous as to Stites’ length of service for there are three possible interpretations:

1. Stites was to remain for one year before he was eligible for the bonus,
2.

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Bluebook (online)
419 P.2d 358, 4 Ariz. App. 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/7-g-ranching-company-v-stites-arizctapp-1966.