Norville v. Palant

545 P.2d 454, 25 Ariz. App. 606, 1976 Ariz. App. LEXIS 523
CourtCourt of Appeals of Arizona
DecidedJanuary 27, 1976
Docket2 CA-CIV 1941
StatusPublished
Cited by7 cases

This text of 545 P.2d 454 (Norville v. Palant) 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
Norville v. Palant, 545 P.2d 454, 25 Ariz. App. 606, 1976 Ariz. App. LEXIS 523 (Ark. Ct. App. 1976).

Opinion

OPINION

KRUCKER, Judge.

This is an appeal by cross-claimants Allan J. Norville and Financial Associates, Inc. (hereinafter collectively denominated “Norville”) from a judgment rendered in favor of cross-claim defendants Edythe Palant and First Realty and Investment Co. (hereinafter “Palant”), and Lew S. McGinnis and Credit Finance Co. (hereinafter “McGinnis”). The trial court made findings of fact and conclusions of law, and after finding that there was no just reason for delay, specifically directed entry of judgment on the cross-claim. Rule 54(b), Rules of Civil Procedure, 16 A.R.S.

Taken in the light most favorable to sustaining the judgment, the facts material to this appeal are as follows. Allan J. Nor-ville is the president of Financial Associates, Inc. Edythe Palant and Joan Zeller are brokers for First Realty and Investment Co.

John Kennedy, a resident of Minnesota, had been looking for investment property in Tucson for several years. Zeller worked with him closely toward this end.

Norville owned a 40-acre parcel of land on the southeast corner of Kolb Road and *607 Broadway in Tucson. In early 1970 Nor-ville was having great difficulty meeting his mortgage payments on the many parcels of real property he owned in Tucson. To alleviate some of the financial pressure on him, Norville determined to sell the 40-acre parcel.

In April of 1970, Norville happened to encounter Palant in the elevator of the SAB Financial Center is Tucson. At that time they discussed Norville’s intention to sell the 40-acre parcel. Palant invited Norville to her office, where he told her he wanted $60,000 for a 4-acre portion of the 40-acre parcel that was subject to a $36,000 mortgage in favor of William Pessin. At some point Norville offered to pay Palant a commission.

Several days later, Palant, who had noticed a postcard from Kennedy to • Zeller, asked Zeller if Palant could work on the sale of Norville’s property to Kennedy if she continued to treat it as Zeller’s listing. Palant had Zeller draw a diagram of the property and send it to Kennedy. On May 11, 1970, Palant spoke to Kennedy on the telephone. After her conversation with Kennedy, Palant called Norville and told him, “Allan, I’ll have an offer for you for the property.”

On May 14, 1970, Kennedy called Palant to tell her he was signing the form of offer Palant had prepared for him. Later the same day Palant called Norville and told him, “Allan, I’ve got your offer; it’s on the way to me.” Norville replied, “Edythe, the offer has changed considerably now.” He stated that he had to net $19,000 for himself and that the prospective purchasers would have to make their own arrangements with Pessin, the mortgagee. Palant then called Pessin. Pessin was reluctant to allow the people from Minnesota to assume the mortgage but nonetheless agreed to meet with them when they came to Tucson.

After she talked to Pessin, Palant called McGinnis and told him she was perturbed because she had lost what had looked like a sure sale. McGinnis told her he had been negotiating with Norville for some time in an attempt to purchase all his properties. Palant next called Kennedy in Minnesota and told him complications had arisen. She told him she could not deliver the property under the terms of the offer, but that “someone [presumably McGinnis] could buy it in between.” On May 16, 1970, Palant received Kennedy’s signed offer in the mail and told him on the phone she would try to salvage the deal by having someone “come in between.”

From May 16 to May 19, 1970, Norville and McGinnis discussed the proposed sale of the entire 40 acres. On May 19 Mc-Ginnis lowered the offer he had previously made. Angered, Norville rose to leave. McGinnis then made an offer on the “Holiday” portion of the 40 acres, but Norville rejected it. Finally, McGinnis expressed interest in the 4-acre parcel as to which Kennedy had made an offer. Norville agreed to sell his equity in that parcel for $7,500 cash, to be paid the same day, and McGinnis agreed to make his own arrangement with Pessin.

McGinnis then went to Palant’s office, from which Palant called Pessin, the mortgagee, to set up a meeting between Pessin and McGinnis. Pessin agreed to accept $10,000 cash from McGinnis and retain a $26,000 first mortgage. Palant then phoned Kennedy, who telegraphed an authorization for Palant to purchase the 4-acre parcel for $60,000 from McGinnis.

After the sale had been consummated, Kennedy sued Palant, Zeller, McGinnis and Norville. He alleged in substance that Palant had materially misrepresented the character of the 4-acre parcel and that Palant and McGinnis had conspired to have Kennedy pay $60,000 for the parcel when it could have been purchased for $43,500.-00. Norville cross-claimed against Palant and McGinnis, alleging inter alia that Palant and McGinnis had conspired to breach Palant’s fiduciary duty to disclose to Nor-ville all facts material to the negotiations and to refrain from representing conflicting interests. Kennedy dismissed or settled *608 with all the parties. At the end of the trial of Norville’s cross-claim, the trial court made the following findings of fact and conclusions of law:

“Findings of Fact

1. There was no broker-principal relationship between Norville and Mrs. Palant.
2. Mrs. Palant informed Norville on May 14, 1970 that Kennedy had offered to purchase the five acres for $60,000.00.
3. Norville rejected Kennedy’s offer to purchase as communicated to him by Mrs. Palant.
4. On May 14, 1970, Mrs. Palant told McGinnis that she failed to make a sale of the five acres, but did not disclose or discuss with McGinnis the identity of Kennedy as the offeror, and, furthermore, did not discuss or disclose any of the terms of Kennedy’s offer whatsoever.
5. Mrs. Palant did not mention, discuss or disclose the particulars of the Kennedy offer to purchase the five acres to McGinnis prior to McGinnis’ purchase of the five acres on May 19, 1970.
6. Mrs. Palant first learned of Mc-Ginnis’ intent to purchase the five acres after McGinnis had agreed to the purchase with Norville on May 19, 1970.
7. Prior to his purchase of the five acres, McGinnis did not know of the Kennedy offer or its particulars.
8. McGinnis and Norville reached a mutually satisfactory agreement for the sale and purchase of the five acres on May 19, 1970.
9. Mrs. Palant never withheld from Norville any material facts concerning the offer of Kennedy to purchase the five acres.

CONCLUSIONS OF LAW

1. There was no fiduciary relationship between Mrs. Palant and Norville.
2. Mrs. Palant practiced no fraud upon Norville.
3. Mrs. Palant was not negligent in any way.
4. Mrs. Palant and McGinnis together practiced no fraud upon Norville.
5. McGinnis did not interfere with the formation of a contract between Norville and Kennedy.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alaface v. National Investment Co.
892 P.2d 1375 (Court of Appeals of Arizona, 1994)
Haldiman v. Gosnell Development Corp.
748 P.2d 1209 (Court of Appeals of Arizona, 1987)
Harben v. Hutton
739 S.W.2d 602 (Court of Appeals of Tennessee, 1987)
Musselman v. Southwinds Realty, Inc.
704 P.2d 814 (Court of Appeals of Arizona, 1985)
Century 21 Quality Properties, Inc. v. Chandler
646 P.2d 435 (Idaho Court of Appeals, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
545 P.2d 454, 25 Ariz. App. 606, 1976 Ariz. App. LEXIS 523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norville-v-palant-arizctapp-1976.