Hanson v. Tempe Life Care Village, Inc.

162 P.3d 665, 216 Ariz. 26, 508 Ariz. Adv. Rep. 43, 2007 Ariz. App. LEXIS 128
CourtCourt of Appeals of Arizona
DecidedJuly 12, 2007
DocketNo. 1 CA-CV 06-0274
StatusPublished
Cited by2 cases

This text of 162 P.3d 665 (Hanson v. Tempe Life Care Village, Inc.) 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
Hanson v. Tempe Life Care Village, Inc., 162 P.3d 665, 216 Ariz. 26, 508 Ariz. Adv. Rep. 43, 2007 Ariz. App. LEXIS 128 (Ark. Ct. App. 2007).

Opinion

OPINION

IRVINE, Judge.

¶ 1 Pamela Hanson, as personal representative of the estate of Amy Hanson (“Estate”), appeals from the grant of summary judgment to Tempe Life Care Village (“Village”). We conclude that the terms of the agreement between Amy Hanson and the Village allowed her to receive a full refund of the entrance fee by giving written notice and vacating her unit within twelve months of taking occupancy. Therefore, we reverse and remand to the trial court to enter judgment for the Estate.

FACTS AND PROCEDURAL HISTORY

¶2 This case arises out of a life care contract between the Village and Amy Hanson (“Decedent”). The Village, a not-for-profit corporation, operates Friendship Village of Tempe, a residential retirement community and care facility in Tempe, Arizona.

¶ 3 Under the Standard Friendship Village Residency Agreement (“Standard Agreement”), Decedent was entitled to reside at the Village for the rest of her life in exchange for a $144,400 entrance fee and fees of $1,760 per month. The parties executed the Standard Agreement and the Addendum to Residency Agreement (“Addendum”) (collectively, “Contract”) on September 24, 2002, and Decedent paid the entrance fee in full prior to moving in on December 18, 2002. Both the Standard Agreement and Addendum impose conditions on the refund of a Village resident’s entrance fee.

¶ 4 Decedent was seventy-eight years old at the time her residence began. Her doctor did not report any terminal illnesses at the time she applied to reside at the Village. During the ensuring year, she was diagnosed with acute leukemia. On November 28, 2003, Decedent gave written notice, specifically referring to the refund terms of the Addendum, of her intent to terminate the Contract and vacate her living unit within her first twelve months of occupancy. Accordingly, Decedent moved out on December 17, 2003, and did not pay any monthly fee beyond the one for December 2003. She died of “progressive acute myeloid leukemia” on February 15, 2004.

¶ 5 The Village subsequently informed the Estate that it was not entitled to a refund of Decedent’s entrance fee. The Estate instituted a breach of contract suit on January 12, 2005, and the Village responded with an answer and counterclaim for $2,366.93 in outstanding fees and monthly charges. Consequently, the parties filed cross-motions for summary judgment. The trial court granted the Village’s motion without elaboration or oral argument and awarded costs and attorneys’ fees under Arizona Revised Statutes (“A.R.S.”) section 12-341.01 (2003). This appeal followed. We exercise jurisdiction pursuant to A.R.S. §§ 12-120.21(A)(1) and -2101 (2003).

DISCUSSION

¶ 6 This court reviews a summary judgment ruling de novo, viewing the record in the light most favorable to the non-moving party. Salib v. City of Mesa, 212 Ariz. 446, 450, ¶ 4, 133 P.3d 756, 760 (App.2006). Summary judgment is warranted only if there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Ariz. R. Civ. P. 56(c). When cross-motions for summary judgment are at issue in an appeal, we can enter summary judgment as a matter of law for the losing party if we find that the trial court erroneously entered summary judgment against that party. Havasu Springs Resort Co. v. La Paz County, 199 Ariz. 349, 350, ¶ 2, 18 P.3d 143, 144 (App.2001).

¶ 7 The construction of a contract — including whether its terms are ambiguous or uncertain — is a question of law subject to de novo review. See Pasco Indus., Inc. v. Talco Recycling, Inc., 195 Ariz. 50, 62, ¶ 51, 985 P.2d 535, 547 (App.1998). We interpret contracts to give effect to all their parts. Kintner v. Wolfe, 102 Ariz. 164, 168, 426 P.2d 798, 802 (1967) (refusing to adopt an interpretation rendering one section a nullity). ‘When interpreting a contract ... it is fundamental [28]*28that a court attempt to ‘ascertain and give effect to the intention of the parties at the time the contract was made if at all possible.’ ” Taylor v. State Farm Mut. Auto. Ins. Co., 175 Ariz. 148, 153, 854 P.2d 1134, 1139 (1993) (quoting Polk v. Koerner, 111 Ariz. 493, 495, 533 P.2d 660, 662 (1975)).

¶ 8 Section X of the Standard Agreement governs the termination of the Contract by a resident:

Resident may terminate this Agreement upon conditions set forth in either subparagraph (a) or (b) as follows:
(a) If Resident has not paid the entrance fee in full,____
(b) If Resident has paid the entrance fee in full, Resident shall:
(i) Provide Village with a written statement from the Medical Director that Resident is not then suffering from a terminal illness; and:
(ii) Contemporaneously with the written statement in Subparagraph (b)(i) above, give Village written notice of termination effective 120 days after the date of such notice; and:
(iii) Pay the monthly fee through the effective date of termination.
In the event of the death of Resident, subparagraphs (b)(i) and (b)(ii) shall not apply and the effective date of termination shall be thirty (30) days after the date of death.
(c) If Resident terminates this Agreement pursuant to either Subparagraph (a) or (b) above, Resident shall be entitled to reimbursement as provided in Paragraph XII hereof.

(Emphasis in original.)

¶ 9 Section XII of the Standard Agreement, governing reimbursement of the entrance fee, provides:

Resident shall not be entitled to reimbursement of the entrance fee except as follows:
(c) If, after payment of the entrance fee in full, this Agreement is terminated in compliance with Paragraph X by Resident’s death, the entrance fee shall be considered fully earned by the Village and no refund of the entrance fee, or any portion thereof, shall be made, and the Resident’s successor and/or assigns shall have no interest therein under this Agreement.
(d) If, after payment of the entrance fee in full, this Agreement is terminated in compliance with Paragraph X for any reason other than death, Village will attempt to obtain a new resident for the Living Unit. If, in the sole discretion of Village, repayment to the Resident will not jeopardize the sound financial structure of Village, then upon receipt of an entrance fee from a new resident, and to the extent that the entrance fee from the new resident is sufficient for such purpose, Resident will be reimbursed for the amount of the entrance fee previously paid by Resident, less an appropriate charge for the period of his or her residency and the period until the new resident assumes residency.

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Bluebook (online)
162 P.3d 665, 216 Ariz. 26, 508 Ariz. Adv. Rep. 43, 2007 Ariz. App. LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanson-v-tempe-life-care-village-inc-arizctapp-2007.