Nielson v. Savoy

464 P.2d 608, 105 Ariz. 325, 1970 Ariz. LEXIS 260
CourtArizona Supreme Court
DecidedJanuary 30, 1970
Docket9811
StatusPublished
Cited by3 cases

This text of 464 P.2d 608 (Nielson v. Savoy) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nielson v. Savoy, 464 P.2d 608, 105 Ariz. 325, 1970 Ariz. LEXIS 260 (Ark. 1970).

Opinion

McFarland, justice:

Karl J. Nielson and Best Auto Parts, a corporation, hereinafter referred to as “Nielson”, brought an action against M. Stanley Reed, hereinafter referred to as “Reed”, to recover damages for an alleged breach of contract, and against John E. Savoy, hereinafter referred to as “Savoy”, to recover damages for an alleged breach of duty as an escrow agent. Savoy moved for summary judgment which was granted. From this judgment Nielson appeals.

Best Auto Parts, an Arizona corporation, was owned equally by Nielson and Reed. Nielson alleged that on or about the 15th day of April, 1966, he entered into an oral agreement with Reed to purchase all of Reed’s stock for the sum of $7,500; Reed represented to Nielson at the time of the agreement that Best Auto Parts owned $3,-800 in accounts receivable and that there was no indebtedness; that Nielson “caused to be placed in escrow with John Doe, attorney for M. Stanley Reed, the sum of $7,500.00 with instructions to said John Doe that the said $7,500.00 was to be delivered to defendant, M. Stanley Reed, after an audit was caused to be made of *326 the business to determine the accuracy of the said representations of defendant, M. Stanley Reed.” The suit was filed against “John Doe” and thereafter “John E. Savoy” was established as the defendant.

Nielson also alleged that the audit was conducted which showed that there was only $1,500 in accounts receivable and that the corporation, instead of being debt free, owed $4,793.27. That prior to the audit, Reed wrongfully, to the damage of Nielson and in derogation of said agreement, contrary to the instructions, caused the escrow holder to deliver the $7,500 check to Reed.

In a second count Nielson alleged that Reed became employed by the corporation as a Managing Officer at a salary of $150 per week and thereafter, without authority of the corporation or its Directors or by their ratification, Reed wrongfully and unlawfully withheld from the corporation the sum of $200 per week for a period of twenty-four weeks, to the corporation’s damage in the sum of $1,700.

Reed answered admitting that Nielson, as owner of 50% of the stock of Best Auto Parts, a corporation, entered into an oral agreement to buy Reed’s stock for the sum of $7,500 and that Nielson delivered a check to him in the sum of $7,500 to be placed in escrow with Savoy with oral instructions to Savoy to deliver the $7,500 to Reed upon receipt of Reed’s stock in the corporation properly endorsed for delivery to Nielson.

Savoy answered admitting that Nielson, as owner of 50% of Best Auto, entered into an oral agreement to buy 50% of the stock from Reed for the sum of $7,500 which was placed in escrow with him by Reed with oral instructions that the $7,500 was to be delivered to Reed upon Savoy’s receipt of the stock of Reed properly endorsed for delivery to Nielson; that, he complied completely with the terms of the escrow and denied that he breached any duty to Nielson or the Best corporation.

After Nielson’s deposition was taken, Savoy filed a motion for summary judgment. In support of his motion, he attached an affidavit, the material parts of which state:

“3. In the latter part of April or early May, 1966, he was advised by Mr. Reed that an agreement had been entered into between Mr. Nielson and himself whereby Mr. Nielson would purchase the 50% of" the stock owned, by Mr. Reed for $7,500.00.
4. He was' asked by Mr. Reed to serve as escrow agent for the transaction, and to hold Mr. Reed’s stock certificates and Mr. Nielson’s check in the amount of $7,500.00 until the transaction was fully completed.
5. Mr. Reed was the only person who gave him any instructions as to the terms of the escrow agreement.
6. When the instructions as given him by Mr. Reed were fully complied with, he turned the $7,500.00 check over to Mr. Reed and retained the stock certificates to be picked up by Mr. Nielson.
7. At no time did Mr. Nielson or any agent of Mr. Nielson advise him of any instructions pertaining to the escrow agreement or that he had violated any term thereof until after the check had been turned over to Mr. Reed.”

Nielson filed his opposition to the motion for summary judgment contending that there existed a question of material fact as to both Count One and Count Two; that the facts in the instant case do not permit a summary judgment under 16 A.R.S., Rule 56(c), Rules of Civil Procedure, which provides : *327 This Court has held that summary judgments should not be granted unless it is definitely established that there is no genuine issue of fact; that it is sufficient to prevent summary judgment if a party asserts a disputed fact which, if proven, could affect final judgment. Elerick v. Rocklin, 102 Ariz. 78, 425 P.2d 103; Elson Development Co. v. Arizona Sav. & Loan Ass’n, 99 Ariz. 217, 407 P.2d 930; Arizona Coffee Shops, Inc. v. Phoenix Downtown Parking Ass’n, 95 Ariz. 98, 387 P.2d 801; Lujan v. MacMurtrie, 94 Ariz. 273, 383 P.2d 187; Nyberg v. Salt River Project Agr. Imp. and Power Dist., 91 Ariz. 397, 372 P.2d 727; Colby v. Bank of Douglas, 91 Ariz. 85, 370 P.2d 56; Sarti v. Udall, 91 Ariz. 24, 369 P.2d 92; Peterson v. Valley Nat. Bank of Phoenix, 90 Ariz. 361, 368 P.2d 317.

*326 “ * * * The judgment sought shall be rendered forthwith if the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. A summary judgment, interlocutory in character, may be rendered on the issue of liability alone although there .is a genuine issue as to the amount of damages.”

*327 However, we have held that a summary judgment may be properly granted when the pleadings, depositions and affidavits present no genuine issue as to any material fact. Knight v. DeMarcus, 102 Ariz. 105, 425 P.2d 837; Martin v. Burns, 102 Ariz. 341, 429 P.2d 660; Hoopes v. Lamb, 102 Ariz. 335, 429 P.2d 447. In the instant case Nielson alleges that he caused the escrow instructions agreed upon between Reed and himself to be given to Savoy by Reed.

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Cite This Page — Counsel Stack

Bluebook (online)
464 P.2d 608, 105 Ariz. 325, 1970 Ariz. LEXIS 260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nielson-v-savoy-ariz-1970.