Industrial Park Corp. v. U. S. I. F. Palo Verde Corp.

507 P.2d 681, 19 Ariz. App. 342, 1973 Ariz. App. LEXIS 527
CourtCourt of Appeals of Arizona
DecidedMarch 15, 1973
Docket1 CA-CIV 1699
StatusPublished
Cited by12 cases

This text of 507 P.2d 681 (Industrial Park Corp. v. U. S. I. F. Palo Verde Corp.) 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
Industrial Park Corp. v. U. S. I. F. Palo Verde Corp., 507 P.2d 681, 19 Ariz. App. 342, 1973 Ariz. App. LEXIS 527 (Ark. Ct. App. 1973).

Opinion

DONOFRIO, Presiding Judge.

This is an appeal from a consent judgment and an addendum thereto in favor of the appellee U.S.I.F. Palo Verde Corporation, (hereinafter referred to as U.S.I.F.), and from a subsequent denial of appellant Industrial Park Corporation’s (hereinafter referred to as Industrial Park) motion to vacate recording and acceleration of said judgment. Appellant questions the jurisdiction of the trial court to enter a consent judgment on stipulation of the parties calling for more than the right of possession in an action which was commenced as a forcible detainer action.

The facts giving rise to this appeal are as follows: On September 1, 1969, Industrial Park entered into an arrangement with U.S.I.F. whereby it sold certain buildings to U.S.I.F. and leased back the same premises for a period of ten years at an annual rental of over $280,000, payable in monthly installments, plus an additional rental of 20% of the annual gross rentals received by Industrial Park from its subleases of the same premises over and above $360,000. Industrial Park thereafter failed to make its August 1970 and September 1970 payments.

In September 1970, U.S.I.F. filed an action designated as a complaint in the Mari-copa County Superior Court, demanding that the premises be returned to it; that a receiver be appointed; and that “damages” be granted for rental payments in arrears, unpaid taxes and interest.

Midway through the proceedings, on October 29, 1970, the parties stipulated to a consent judgment which provided in relevant part: That the lease agreement should be terminated; that U.S.I.F. have judgment against Industrial Park in the amount of $60,000 for breach of the lease agreement, plus further damages to be determined and added by addendum to the judgment; that said judgment should be paid in 48 monthly installments of $2,000, plus interest on the unpaid balance; and that in the event of default on said payments U.S.I.F. could accelerate all the payments and record a transcript of the judgment and execute on it. On January 11, 1971, the trial court added over $27,000 to the above judgment for the amount of security deposits of various subleases between Industrial Park and third-party tenants. The parties also stipulated to this addendum.

Industrial Park failed to pay its first installment under the judgment on December 1, 1970. On December 4, 1970, U.S.I.F. sent Industrial Park a telegram .threatening acceleration of the judgment if payment was not made by December 7. Payment was made and accepted on the 7th. Industrial Park was again in arrears as to its January 1971 installment. On January 19, 1971, U.S.I.F. notified Industrial Park by *344 letter that it was accelerating the judgment, recording a transcript of it, and executing upon it because of nonpayment. Thereafter, Industrial Park tendered the January installment, but it was refused.

It was at this point that Industrial Park first employed its present counsel who joined in filing a motion to vacate recording and acceleration of judgment based upon accident and mistake. An affidavit by the president of Industrial Park was also filed in which he offered the following reasons for delayed payment: That house counsel terminated his employment in December 1970, without delegating responsibility for making prompt payment (Industrial Park was, however, represented by counsel throughout the proceedings in question); that the treasurer became ill and was away from work during the period appellant was in default; that the treasurer’s wife was injured in an automobile accident which also necessitated his being away from work and being unable to make payment; and that Industrial Park’s corporate offices had been moved which caused an interruption in normal business procedures. The trial court, after a hearing, denied appellant’s motion, whereupon this appeal was filed. U.S.I.F. then levied an execution against Industrial Park’s property.

Appellant’s primary contention appears to be that since appellee brought its original action under the forcible entry and de-tainer statutes, A.R.S. § 12-1171 et seq., it necessarily limited the subject matter jurisdiction of the Superior Court to a determination solely of the right of possession of the premises in question. It argues that the award of damages was therefore beyond the subject matter jurisdiction of the trial court. We do not agree.

Both the judgment and the addendum being challenged on appeal were stipulated to by competent counsel for both parties. As a general principle of law, a stipulated or consent judgment is conclusive as to the stipulating parties. Cochise Hotels v. Douglas Hotel Operating Co., 83 Ariz. 40, 316 P.2d 290 (1957); Wall v. Superior Court, 53 Ariz. 344, 89 P.2d 624 (1939).

Under the pleadings and record the trial court had the necessary requisites for jurisdiction, namely, it had jurisdiction of the subject matter, of the parties, and jurisdiction to render the particular judgment which was stipulated to between the parties. It is to be noted that no action was ever taken to set aside the stipulations after they were made and judgments entered thereon. Stipulations made during a lawsuit are binding. Higgins v. Guerin, 74 Ariz. 187, 245 P.2d 956 (1952). It is an obligation unlike ordinary contracts between parties not in court. Crunden-Martin Mfg. Co. v. Christy, 22 Ariz. 254, 196 P. 454 (1921). In this early case of Crunden-Martin, supra, our Supreme Court looked with favor upon stipulations designed to simplify and settle litigation.

Industrial Park argued in its answer that because of the allegations of the complaint the action should have been brought under A.R.S. § 33-361, dealing generally with the remedies of a landlord for violation of a lease, instead of as a forcible detainer action under A.R.S. § 13-1171 et seq. We have previously determined, however, that the allegations of a complaint can be phrased in such a manner as to comply with either statute. Thompson v. Harris, 9 Ariz.App. 341, 452 P.2d 122 (1969). We have also held that a plaintiff is entitled to a determination of rent due in forcible detainer actions. Fenter v. Homestead Development and Trust Co., 3 Ariz.App. 248, 413 P.2d 579 (1966).

Industrial Park argues on appeal that the Superior Court exceeded its jurisdiction in entering the judgment and addendum because the action was captioned as a forcible detainer matter.

Article 6, Section 14, of the Arizona Constitution, A.R.S., states as follows:

“Section 14. The superior court shall have original jurisdiction of:
* * * * *
“5. Actions of forcible entry and de-tainer.”

*345

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507 P.2d 681, 19 Ariz. App. 342, 1973 Ariz. App. LEXIS 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-park-corp-v-u-s-i-f-palo-verde-corp-arizctapp-1973.