Olympic Land Co., Inc. v. Smithart

400 P.2d 846, 1 Ariz. App. 175
CourtCourt of Appeals of Arizona
DecidedApril 15, 1965
Docket1 CA-CIV 51
StatusPublished
Cited by3 cases

This text of 400 P.2d 846 (Olympic Land Co., Inc. v. Smithart) 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
Olympic Land Co., Inc. v. Smithart, 400 P.2d 846, 1 Ariz. App. 175 (Ark. Ct. App. 1965).

Opinion

STEVENS, Chief Judge.

James W. Smithart filed his action against Olympic Land Co., Inc., a corporation, and several individuals. Some of the individual defendants were corporate officers and stockholders of Olympic. The individual defendants who were not officially connected with Olympic were successful in their efforts and were eliminated from the action prior to the time that the case was submitted to the jury. No appeal was taken in relation to this success. Four forms of verdict were rendered in favor of the plaintiff. Each verdict was identical in the matter of the damages awarded by the jury, namely a verdict of $9,000 actual damages and $3,125 punitive damages. One verdict was against Olympic; one verdict was against one individual defendant who thereafter took no further action in the trial court nor by the way of appeal; one verdict was against an individual defendant and his wife; and the fourth form of verdict was against another individual defendant. Judgment was duly entered on the verdicts. Olympic and the individuals who were the subject of the last two mentioned verdicts, filed their respective motions for a new trial which motions were denied and they gave their respective notices of appeal. Only Olympic processed the appeal. The court therefore feels that there is no necessity of naming the individual defendants in the body of this opinion.

Smithart urged the he and Olympic entered into an oral agreement for the exchange of real property, that he fully performed and that Olympic did not fulfill its obligations. Smithart urged that under the agreement he was to receive three lots in a new subdivision in a mountain or recreation area of Arizona and that the roads in the subdivision were to be paved or surfaced, that water was to be available to each lot and that electricity was to be available to each lot, all at Olympic’s expense. Smithart urged that these portions of the agreement were not complied with by Olympic. Smithart asked for breach of contract, for unjust enrichment and for punitive damages for fraud. The allegations of the complaint were sufficient to sustain a pleading of fraud in relation to future acts to be performed by Olympic.

The trial was hard fought with able counsel representing Smithart and two able attorneys representing the defendants, one representing the corporate defendant and the other the individual defendants. The trial consumed four days. The evidence and the legal arguments during the progress of the trial required 607 pages of the reporter’s transcript. The settling of the instructions, the argument of the case to the jury and the court’s instructions, required an additional 164 pages. In order to have a clear picture of this case, the 607 pages as well as the instructions have been read by the court, even though no error is assigned in relation to the instructions.

There was testimony of an oral agreement between Smithart and Olympic. The oral agreement was reached in the late summer or early fall of 1958. Pursuant to-that agreement and on October 8, 1958, Smithart deeded his equity in a home in Phoenix to Olympic and not long thereafter Olympic sold or transferred the home to a third party. Some time later Olympic: tendered a contract of exchange to Smithartwho refused to sign it because it was silent as to Olympic’s obligation in relation to-roads, water and electricity. Smithart transmitted these reasons to Olympic. The evidence does not disclose an affirmative denial of these obligations by Olympic. Still later, Smithart was tendered escrow-instructions in relation to the transfer of the three lots which he was to receive. The- *177 escrow instructions were likewise silent relative to roads, water and electricity and for that reason Smithart again refused to sign. Again he so informed Olympic. Again there was no evidence as to Olympic denying the existence of this obligation. No deed to the three lots was executed by Olympic and Smithart did not take possession of the three lots.

A corporate officer on cross examination identified an exchange contract (Exhibit 24) between Olympic and McDonald. This written document bearing the signatures of the parties thereto was silent as to roads, water or electricity. The contract, as written, was fully executed in that McDonald promptly transferred to Olympic all that he was obligated to transfer and Olympic promptly conveyed title to the required lots to McDonald. The plaintiff then called McDonald as a witness and over objection established that McDonald’s arrangement with Olympic was negotiated at a time reasonably near to the time of Smithart’s negotiations. McDonald further testified that he too had received like promises relative to roads, water and electricity. Olympic assigns as error the ruling of the court in allowing the McDonald testimony. McDonald was not a party to the suit then being tried. His testimony had no bearing upon any claim he might have relative to his rights under the contract which he had with Olympic. The purpose of the testimony was to show plan, scheme, design and knowledge on the part of Olympic. This aspect of the testimony was received in relation to Smithart’s claim for punitive damages. The United States Court of Appeals for the 9th Circuit in deciding an appeal from a judgment rendered by the United States District Court Judge sitting in Arizona, had before it a somewhat similar question. In the case of Baldwin v. Warwick, 9 Cir., 213 F.2d 485 (1954), that court approved the receipt of the testimony of two witnesses who testified to drugged drink experiences similar to the experience testified to by the plaintiff in that action. In relation to the testimony of these witnesses, the court stated that:

“Their testimony would appear to have been properly admitted for the limited purpose of showing the existence of an overall scheme.”

We find an absence of error in relation to this phase of the case.

During Smithart’s vacation in the spring of 1959, he accepted employment with Olympic to grade the roadways in the subdivision. He was to receive additional lots as compensation for these services. Smithart undertook to perform these services during the month of April 1959 and in the performance thereof was present in the subdivision at the time that Olympic staged a promotional bar-b-que. Smithart agreed to cook for the bar-b-que. He testified that at the bar-b-que he was given a promotional brochure (Exhibit 9) and that he secured a copy of an undated, unsigned paper entitled “Instructions to Salesmen” (Exhibit 10). The evidence in relation to the foundation for Olympic’s responsibility in connection with Exhibit 10 was such that this court does not disagree with the ruling of the trial court in sustaining objections to the receipt of Exhibit 10 into evidence.

As to Exhibit 9, Smithart testified that not only was he given a copy of the exhibit at the bar-b-que but that copies were given to those who attended the bar-b-que and that there was a supply of the brochures available for distribution at the bar-b-que. There was also testimony that a sizeable supply of the brochures was available at the Phoenix Sales Office for Olympic. Exhibit 9 had been prepared by an advertising agency. Shortly after its preparation an employee of the agency was employed by Olympic as a “manager”. It may be well to state at this point that Exhibit 9 contains a rough sketch map of the subdivision in question showing the lot numbers and the street names. In part, the following further appears in the Exhibit:

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Bluebook (online)
400 P.2d 846, 1 Ariz. App. 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olympic-land-co-inc-v-smithart-arizctapp-1965.