Aritex Land Company v. Baker

482 P.2d 875, 14 Ariz. App. 266, 1971 Ariz. App. LEXIS 547
CourtCourt of Appeals of Arizona
DecidedMarch 18, 1971
Docket2 CA-CIV 922
StatusPublished
Cited by18 cases

This text of 482 P.2d 875 (Aritex Land Company v. Baker) 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
Aritex Land Company v. Baker, 482 P.2d 875, 14 Ariz. App. 266, 1971 Ariz. App. LEXIS 547 (Ark. Ct. App. 1971).

Opinion

HOWARD, Judge.

This appeal is the culmination of litigation between two brothers which was commenced approximately three years ago. Since both procedural and substantive questions are involved in this appeal, a detailed recitation of the chronology of events in the trial court are necessary.

In 1967 and 1968, the appellees filed three complaints in Superior Court. The first, *269 cause No. 103042, was a suit by the appelleewife, as guardian of the estate of Jeffery, a minor, to obtain (1) a record transfer of 2,500 shares of Aritex capital stock to Joy as guardian, and (2) an examination of the corporate books and records. This complaint was later amended to add an alternative count for recovery of $51,200, an alleged loan which the guardian had made to the appellants in February, 1965. At the subsequent pretrial conference, the first count was withdrawn and at trial the .amount was amended to $57,598.13.

The second complaint, cause No. 106209, was filed by Leslie and Joy Baker against the appellants to establish that they were the ■owners of 50% of the outstanding capital stock of Aritex, to prevent appellant Baker from wasting the assets of the corporation, for contribution from appellant Baker for Leslie Baker’s expenditures in connection -with jointly owned property and for recognition of Leslie Baker’s one-half ownership •of certain real property held in the name of Irving Baker. 1 This complaint was later ■amended to allege a joint venture between Irving and Leslie for the purpose of ac■quiring and financing Aritex and managing and disposing of the assets of Aritex at a •profit and a breach thereof by Irving. The relief sought was an accounting of the proceeds and net profit of Aritex, imposition ■of a constructive trust and establishment and enforcement of a lien for contribution from Irving for Leslie’s expenditures in connection with real property held in trust by Transamerica Title Company for Irving •and Leslie.

A third suit, cause No. 107207, in which Leslie and Joy sought to have set aside certain transfers and conveyances, resulted in a judgment in their favor in February, 1969. The merits of this case are not involved in the subject appeal, the time for appeal having expired.

All three cases were consolidated for all purposes. After numerous re-settings of the trial date, trial was set for July 1, 1969. 2 On June 29, 1969, Irving sustained a heart attack and his counsel moved for a continuance. On July 3, 1969, medical testimony was presented in support of the motion. The substance of the medical testimony was that Irving could resume almost-normal activity within six to eight weeks from the date of the attack, that the strain of litigation could have been a significant contributing factor to the heart attack, and that if Irving were to undergo the same pressures after recovery from this attack, he would be even more likely to have another heart attack. Leslie testified that on previous occasions, financial or emotional pressures had caused Irving’s physical breakdown and that a trial delay would cause him irreparable harm because of his precarious financial situation.

Further hearing on the continuance request was postponed to July 11th, at which time evidence was presented that Irving had attempted to fire his attorney, that he had made several telephone calls with respect to business, including a 16-minute long distance call from the intensive care unit, that he had been walking in his room and hospital corridors, smoking, and going to the cafeteria to eat a few days prior to the date of the hearing. The court ordered the trial to commence on July 15, 1969.

Just prior to trial, Irving’s counsel again moved for a postponement of the trial and requested leave of court to withdraw as counsel for the reason that he had been fired by Irving. The court refused to permit counsel to withdraw and the trial commenced. It continued through August 6, 1969, 3 on which date Irving’s counsel moved *270 to continue the trial until August 25th. The motion was granted and although the trial technically resumed on August 25th, settlement negotiations consumed several days so that actually formal resumption did not occur until September 4th. On September 9th, Irving’s counsel again moved for a continuance on the ground that Irving was in Los Angeles under the care of a California physician. The court denied the motion with leave to Irving to cause himself to be re-examined by the Tucson physician who had previously testified in July and to reapply for a continuance when the Tucson doctor was available to testify as to Irving’s condition. Irving visited the Tucson doctor on September 16th and on September 17th, appellees rested their case. Irving made no further motions for continuance.

On September 18, 1969, the parties signed a memorandum of settlement in open court. Before signing, Irving testified that he had full authority to sign on behalf of Aritex and that he would travel to Los Angeles to .obtain the signature of his mother, Frances Baker. On September 24th, Irving returned to court with his mother and the final agreement was signed by all parties in open court.

On December 23, 1969, Leslie and Joy filed a motion for judgment enforcing the settlement agreement. After a series of hearings thereon, the court denied the motion on January 14th and ordered that trial be resumed on January 19th. Leslie and Joy, on January 16th, requested leave to file a supplemental complaint seeking, in the alternative to the relief sought in the original complaint, damages for breach of the settlement agreement. There being no objection by Irving’s counsel, 4 leave was granted. The supplemental complaint was later amended, on stipulation of counsel, to permit assertion of alternative remedies, rescission or damages.

After a series of trial postponements, various discovery procedures, unsuccessful motions by Irving to dismiss the original complaints and an unsuccessful application by Irving to this court for a special action, the trial finally resumed on May 19, 1970.

Leslie and Joy presented their case with respect to the claim set forth in the amended supplemental complaint, to-wit, breach of the settlement agreement. Just prior to resting their case, they renewed a motion, previously denied at pretrial, to set the order of trial so that it was limited to the issues joined by the amended supplemental complaint and answer thereto. Irving and Aritex moved, without objection, to dismiss some of their affirmative defenses to this claim, defenses essentially directed to voiding the settlement agreement. These defenses were ordered stricken by the court, and again Irving moved to dismiss the original complaints or the amended supplemental complaint. These motions were denied and the court granted appellees’ motion with respect to the order of trial. 5 Aritex and Irving presented their case with respect to the breach of contract claim. On June 23, 1970, the court rendered judgment in favor of Leslie and Joy on the amended supplemental complaint, awarding them damages for breach of the settlement agreement, and dismissed the original complaints.

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Bluebook (online)
482 P.2d 875, 14 Ariz. App. 266, 1971 Ariz. App. LEXIS 547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aritex-land-company-v-baker-arizctapp-1971.