Phelps Dodge Corp. v. Galvez

703 P.2d 1218, 146 Ariz. 69, 1985 Ariz. App. LEXIS 549
CourtCourt of Appeals of Arizona
DecidedMarch 6, 1985
DocketNo. 2-CA-CIV 5065
StatusPublished
Cited by1 cases

This text of 703 P.2d 1218 (Phelps Dodge Corp. v. Galvez) 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
Phelps Dodge Corp. v. Galvez, 703 P.2d 1218, 146 Ariz. 69, 1985 Ariz. App. LEXIS 549 (Ark. Ct. App. 1985).

Opinion

OPINION

HATHAWAY, Judge.

This appeal arises out of two forcible detainer actions filed by appellee (Phelps Dodge) against two striking miners, appellants (Galvez and Puffer), consolidated on appeal.

The cases were heard in different divisions of the superior court. Cross-motions for summary judgment were filed and following oral argument in each, Phelps Dodge’s motion for summary judgment was granted and appellants’ motions were denied. In the Puffer case, Pima County Superior Court cause number 211979, judgment was entered awarding Phelps Dodge possession of its premises, ordering Puffer to vacate the premises and ordering each party to bear their own costs and attorney’s fees, but expressly declining to make findings as to unpaid rent due. In the Galvez ease, Pima County Superior Court cause number 211980, the judgment entered in favor of Phelps Dodge ordered [71]*71Galvez to vacate Phelps Dodge’s property, awarded Phelps Dodge all due rent and held that the issue of entitlement to attorneys fees was not cognizable in forcible detainer proceedings and therefore denied Phelps Dodge’s request for attorney’s fees. Phelps Dodge cross-appeals on the latter question.

This court has jurisdiction over the appeal and cross-appeal pursuant to A.R.S. §§ 12-120.21(A)(1) and 12-2101(B).

The parties agree that the forcible detainer actions arise out of strike activities against Phelps Dodge at its mine in Ajo, a company town. Phelps Dodge is the primary, and almost exclusive, employer in Ajo. It also' owns most of the property, including the housing.

Phelps Dodge leased the premises at issue to Galvez and Puffer as company employees. The written residential rental agreement with Puffer is dated April 15, 1980, and the Galvez agreement is dated January 15,1980. Pursuant to both agreements, the respective properties were rented on a week-to-week tenancy basis. Both agreements provide in paragraph 9 that either the landlord or the tenant may terminate the agreement for any reason upon 10 or more days’ written notice:

“Whether or not a breach of or default under this lease has occurred or is continuing, Tenant and Company each shall have the right to terminate this lease by a written notice delivered to the other party at least ten (10) days prior to the termination date specified in the notice. In addition to Company’s rights and remedies under this Section 9 and under other provisions of this lease and without in any way limiting the right of Company to terminate this lease as provided in the immediately preceding sentence hereof, Company hereby reserves unto itself all the rights and remedies of a landlord at equity and under applicable law.”

In statements given in their depositions, both appellants acknowledged that they understood that the clause gave them, as well as Phelps Dodge, the right to terminate the agreement at any time by giving the prescribed notice. Puffer was notified on July 23, 1983, that he was discharged for alleged strike misconduct. Galvez was notified on July 19, 1983, that he was not acceptable for recall from layoff because of alleged strike misconduct. In accordance with the agreements, Phelps Dodge gave written notice of its intent to terminate the tenancies. The termination notice was given to Puffer on August 3, 1983, and to Galvez on August 13, 1983. The notices informed the tenants that their week-to-week leases would be terminated and advised them of the effective date of termination and that they must quit and surrender the premises on or before such date. Appellants acknowledged receipt of the notices, but refused to vacate the premises. Consequently, Phelps Dodge brought these forcible detainer proceedings.

Thomas Keller, the Phelps Dodge employment/rental agent in Ajo, had authority to terminate rental agreements for various reasons including flagrant violations of the agreements, a separation from the company payroll for any reason, or a failure to pay rent. He testified:

“... primarily the housing is designed for active employees and that was — anytime we had one separated from the payroll, for, what, any reason, retirement, discharge, quitting, we would give them notice of house termination as a matter of policy. Give them 30 days to vacate the premises and, of course, if we went into — luckily we didn’t have too many cases where we would have to go into eviction or forcible detainer action.
* * * S|C * 3jt
... Again, housing is limited and primarily designed for active employees.”

Thus, Phelps Dodge’s policy is to provide housing primarily for active employees and when employees are separated from the payroll, company housing appears typically [72]*72to be terminated. This is Phelps Dodge’s asserted basis for termination of appellants’ rental agreement.

Union negotiating representatives complained during collective bargaining negotiations about certain rental agreement termination notices that had been received by union members. The matter was discussed between Phelps Dodge and the union and the termination policy was modified in a letter dated September 12, 1983, to the chairman of the union bargaining committee. The letter provided that if an employee disputes his or her discharge or loss of recall eligibility by filing a charge against Phelps Dodge with the National Labor Relations Board (NLRB), Phelps Dodge would proceed to recover possession of its rental housing from such individual if that person remained discharged or ineligible for recall after the case had been “completed.” Completion was defined to include a decision of a regional director of the NLRB not to issue a complaint regarding a discharge or decision not to recall.

Phelps Dodge’s position is that its decision to modify its rental agreement termination policy did not affect appellants because the policy modification did not occur until after the appellants’ rental agreements had been terminated, and in any event, appellants’ cases had already been “completed” within the meaning of the September 12, 1983, letter, since the regional director of the NLRB had issued his letter finding no violation by Phelps Dodge and declined to issue a complaint on behalf of appellants.

Appellants raise the following issues on appeal:

1. Did both courts err in granting judgments in favor of Phelps Dodge on the issue of possession while denying appellants opportunities to raise equitable defenses and defenses based upon the Arizona Residential Landlord/Tenant Act?

2. Did both courts err in granting summary judgment for Phelps Dodge on the right of possession where there were disputes as to material facts and inferences?

3. Did the court err in the Galvez case by denying appellant's right to present evidence regarding the wife’s right to continue to rent the property as an employee of Phelps Dodge?

4. Did the court err in the Galvez case by granting a judgment for unpaid rent when there were disputed facts as to whether the rent was due?

I.

Appellants contend that in the two forcible detainer actions, they sought and were denied opportunities to raise defenses to Phelps Dodge’s right to possession. Appellants allege that Phelps Dodge was seeking possession in bad faith and in retaliation for the tenants’ assertions of their rights.

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

Related

Woodhaven Homes, Inc. v. Kennedy Sheet Metal Co.
803 S.W.2d 508 (Supreme Court of Arkansas, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
703 P.2d 1218, 146 Ariz. 69, 1985 Ariz. App. LEXIS 549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelps-dodge-corp-v-galvez-arizctapp-1985.