Lancaster v. Chemi-Cote Perlite Corporation

511 P.2d 673, 20 Ariz. App. 229, 1973 Ariz. App. LEXIS 687
CourtCourt of Appeals of Arizona
DecidedJune 28, 1973
Docket1 CA-CIV. 1844
StatusPublished
Cited by6 cases

This text of 511 P.2d 673 (Lancaster v. Chemi-Cote Perlite Corporation) 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
Lancaster v. Chemi-Cote Perlite Corporation, 511 P.2d 673, 20 Ariz. App. 229, 1973 Ariz. App. LEXIS 687 (Ark. Ct. App. 1973).

Opinion

OGG, Judge.

This is an appeal from a judgment of the Superior Court of Maricopa County, establishing the right of possession of a crusher plant in favor of Harborlite Corporation and against Jim M. Lancaster.

In order to1 simplify the facts, Jim Lancaster will be referred to as Lancaster, Harborlite Corporation as Harborlite, Chemi-Cote Perlite Corporation as ChemiCote, Superior Industries, Inc. as Superior and Magma Arizona Railway Company as Magma.

The facts viewed in a light most favorable to upholding the judgment of the trial court are as follows:

Prior to October 1, 1954 Chemi-Cote, defendant in the trial court, was holder and owner of certain property in Pinal County, Arizona. The property consisted of two unpatented mining claims and a crushing and processing plant, together with certain machinery, equipment and improvements located on a third unpatented mining claim belonging to Magma. Chemi-Cote leased the three pieces of property to Superior on October 1, 1954. The Corporations acted through the same president and secretary and the initial lease agreement was amended on several occasions thereafter.

Harborlite entered the picture in April, 1959 and on April 30 entered into a written agreement with Superior in order to acquire Superior’s rights as a lessee to the property. Under the agreement, Harbor-lite became a sub-lessee of Chemi-Cote and obtained all of Superior’s right, title and interest in the original lease. On the same day Superior additionally signed a sublease of the two mining claims and crusher plant. On May 2, 1959 the sub-lease was replaced by an assignment by Superior to Harborlite of the October 1, 1954 lease and its amendments. Chemi-Cote accepted the assignment and Harborlite proceeded to record the lease and amendments.

Chemi-Cote had obtained its lease on the crusher plant property from Magma. Magma did not want the sub-lease executed to Harborlite and with the full approval of all the parties the existing lease with Chemi-Cote was terminated and a new lease with Harborlite was executed.

*231 Since April, 1959 Harborlite has been in possession of the mining claims and crusher plant. There has been extensive litigation among Harborlite, Superior and Chemi-Cote since the 1959 agreements.

Chemi-Cote made a promissory note for $40,000.00 which was later assigned to Lancaster (plaintiff in the instant action). On October 11, 1968 Lancaster filed a complaint seeking judgment on the $40,000.00 note and requesting that the chattel mortgage on the crusher plant equipment securing said note be foreclosed. Chemi-Cote was defaulted and Lancaster subsequently purchased the crusher plant equipment at the sheriff’s sale. Lancaster, at the same time, presented the certificate of sale to Harborlite and demanded possession of the crusher plant; Harborlite refused and Lancaster obtained a writ of assistance on December 11, 1968 and the sheriff served the writ on Harborlite.

Harborlite filed a motion to intervene and to set aside the sale and to retain possession of the property. On December 30, 1968, after a hearing, the trial court found that Harborlite had the right to possession of the crusher plant and would maintain that right so long as it complied with the lease agreement, pending the trial of the case on the merits. Both Lancaster and Harborlite filed motions for summary judgment which were denied.

The case proceeded to trial and a jury found for Harborlite. This appeal followed. The crux of appellant Lancaster’s argument is that Harborlite refused to recognize Lancaster as successor in interest to Chemi-Cote by virtue of the execution sale and failed to comply with the terms of the written lease to which Harborlite is a party.

The appellant presents numerous questions for review which we will deal with in the order presented:

SUMMARY JUDGMENT

The appellant argues that it was error for the trial court to deny its motion for summary judgment. In essence, appellant claims that there were no justiciable issues of fact and that he, as a matter of law, was entitled to judgment. We disagree. It is a basic maxim of Arizona law that the denial of a motion for summary judgment is not an appealable order. Navajo Freight Lines, Inc. v. Liberty Mutual Insurance Co., 12 Ariz.App. 424, 471 P.2d 309 (1970); Fernandez v. Garza, 93 Ariz. 318, 380 P.2d 778 (1963).

In Navajo Freight Lines, supra, this Court held that such an order — denial of a motion for summary judgment — may not be reviewed as part of an appeal from the final judgment later entered in the same matter. This Court stated:

“While an order denying a motion for summary judgment is undoubtedly an ‘intermediate order’, we do not believe that such order ‘ * * * [involves] the merits of the action and necessarily [affects] the judgment * * *.’ As stated in Switzerland Cheese Association, Inc. v. E. Horne’s Market, Inc., supra, 385 U.S. 23, 87 S.Ct. 193, 17 L.Ed.2d 23, an order denying a motion for summary judgment is strictly a pretrial order that decides only one thing — that the case should go to trial.”
12 Ariz.App. at 428, 471 P.2d at 313

Although the appellant accepts the rule as set out in Navajo Freight Lines, supra, he argues that the summary judgment ruling was based solely on a point of law and that this is a reviewable question. He cites the following wording in Navajo, to-wit:

“If it were abundantly clear from the trial court’s order denying the motion for summary judgment that the denial was made strictly on a point of law, and that because of such ruling the losing party thereafter was precluded from offering evidence or urging the point at the time of the trial on the merits, then there might be some logic in appellants’ position.”
12 Ariz.App. at 428, 471 P.2d at 313

Appellant supports his contention by indicating that appellees also made a motion for summary judgment, stating that there were no' questions of fact. The fault *232 with appellant’s argument is that appellees’ facts were not the same as appellant’s, there being several large areas of disagreement. The parties did not agree as to whether appellees had complied with the trial court’s order of December, 1968 and this argument is vital to both parties. Neither party was precluded at the trial from raising the issues which were most strenuously argued at the hearing on the motions for summary judgment.

FAILURE TO GRANT A DIRECTED VERDICT

Appellant argues that the trial court improperly denied the motion for a directed verdict because no issues existed which were within the province of a jury to decide. We are of the opinion that the record before us does not sustain appellant’s position. A directed verdict is properly granted where there is no conflict as to any of the facts. Directed verdicts are restricted to those certain cases where reasonable minds cannot differ as to the conclusions which must be drawn.

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Bluebook (online)
511 P.2d 673, 20 Ariz. App. 229, 1973 Ariz. App. LEXIS 687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lancaster-v-chemi-cote-perlite-corporation-arizctapp-1973.