Standage v. Jaburg & Wilk, P.C.

866 P.2d 889, 177 Ariz. 221, 145 Ariz. Adv. Rep. 42, 1993 Ariz. App. LEXIS 160
CourtCourt of Appeals of Arizona
DecidedAugust 12, 1993
Docket1 CA-CV 90-0581
StatusPublished
Cited by13 cases

This text of 866 P.2d 889 (Standage v. Jaburg & Wilk, P.C.) 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
Standage v. Jaburg & Wilk, P.C., 866 P.2d 889, 177 Ariz. 221, 145 Ariz. Adv. Rep. 42, 1993 Ariz. App. LEXIS 160 (Ark. Ct. App. 1993).

Opinion

OPINION

CONTRERAS, Presiding Judge.

This is an appeal from the trial court’s orders and judgments in favor of Appellees on all claims alleged by Appellant Keith Standage (“Standage”) in a professional malpractice action and the imposition of Rule 11 sanctions of $30,000 against Appellant’s coun-. sel, Gove Allen (“Allen”). This action is one in a series of what can only be classified as vexatious lawsuits brought by Standage. A considerable number of issues are presented, some of which are spurious. We affirm on all issues and award Appellees’ attorney’s fees, costs, and double damages of $5000 each against Allen and Standage pursuant to Ariz.Rev.Stat.Ann. (“AR.S.”) section 12-349(A).

I. BACKGROUND AND PROCEDURAL HISTORY

A General Background

Hugh Lawson (“Lawson”) formed Planned Investment Corporation (“PIC”), a family corporation, in Arizona in 1963. PIC’s principal asset is a thirteen-unit shopping center located in Mesa, Arizona. Lawson retained ownership of 52% of PIC’s stock and gave 24% to each of his two children: Roger Lawson and Cheryl Standage. Cheryl Stand-age’s husband, Keith F. Standage, managed the shopping center pursuant to a written agreement from 1964 through 1969. Between 1970 and 1984, he served as the manager without a written agreement. Standage also served as PIC’s secretary from 1963 until August 5, 1982.

Lawson died in 1979 and his ownership interest passed to his wife, Gladys Lawson. After Lawson’s death, Standage negotiated with Gladys Lawson to purchase her interest in the shopping center. Prior to the completion of the sale, Cheryl Standage filed for divorce, and the sale negotiations terminated. In the divorce action, Cheryl Standage was awarded the 24% of PIC stock as her sole and separate property. Standage v. Standage, 147 Ariz. 473, 480-81, 711 P.2d 612, 619-20 (Ct.App.1985).

In November 1983 PIC obtained a court order removing Standage as manager of the shopping center effective February 14, 1984. After Standage was removed, PIC hired an independent property management company to manage the shopping center. When the new management company failed to receive rent from Ivory Crow (“Crow”) who operated Crow Cleaners, a dry cleaning business in the shopping center, it gave notice to terminate Crow’s month-to-month tenancy. On June 21, 1984, PIC filed a forcible detainer action against Crow, which was later dismissed.

Crow filed an action (“PIC II”) and later Standage joined Crow as a party plaintiff in the amended complaint filed on September 5, 1984. Their amended complaint alleged that both Cheryl Standage and the new property management company intentionally interfered with the business relationship between Crow, Standage, and PIC; that PIC breached an agreement with Crow and Standage; and that PIC had racially discriminated against Crow. Standage also asserted that he had a lease agreement with PIC for Crow Cleaners. PIC counterclaimed (“PIC III”) seeking a declaratory judgment that the two agreements under which Standage was claiming rights to lease Crow Cleaners were invalid and unenforceable. The counterclaim alleged breach of fiduciary duty and breach of contract against Standage and also alleged a claim of forcible detainer and conversion against Crow.

The two agreements involved in the counterclaim were (1) a July 1,1976, lease signed by Standage both as lessor and as lessee, which purportedly leased the dry cleaner premises to Standage until 2006, and (2) a 1980 agreement signed by Standage as both first and second party between Standage and Crow as first parties and PIC as second party whereby Crow agreed to clean the shopping center parking lot and provide *224 Standage and his family free dry cleaning in lieu of paying rent.

The action was consolidated with two earlier cases (“PIC I”) that involved the validity of a 1968 lifetime management agreement allegedly between Standage and PIC and PIC’s attempts to remove Standage as manager. The parties stipulated that the issues in the action would be severed from the trial in the PIC I cases. In PIC I, PIC obtained a judgment against Standage on claims arising out of the alleged 1968 management agreement and two promissory notes and mortgages. The jury in those proceedings also determined that the documents were false. PIC was awarded both compensatory and punitive damages pursuant to findings that Standage had filed false documents, had willfully refused to release certain documents, had slandered title, and had breached his fiduciary duty to PIC. Standage v. Planned Investment Corp., 160 Ariz. 287, 289, 772 P.2d 1140, 1142 (Ct.App.1988) (addressing PIC I, II, and III).

In the remaining trial involving PIC II and PIC III, the trial court found that the 1976 lease and the 1980 agreement were neither drafted nor signed in 1976 or 1980, but rather were drafted and signed in 1984 when the forcible detainer litigation arose. The court further found that PIC did not ratify the documents, that Standage had no authority to sign either agreement on behalf of PIC, and that he did not disclose the agreements •in his divorce or to a prospective purchaser of the shopping center in 1982, nor reference the agreements in documents filed in his 1983 bankruptcy. Previously, both Standage and Crow had claimed only an oral month-to-month tenancy of the dry cleaning premises. The court noted that the originals of the documents had not been produced and found that the failure to disclose them constituted a breach of fiduciary duty and interfered with PIC’s ability to re-lease the premises.

The trial court denied relief on all claims of the amended complaint. In PIC III (the counterclaim), the court awarded PIC damages against Standage for breach of fiduciary duty and awarded damages against both Standage and Crow for forcible detainer. It further awarded punitive damages against Standage and attorney’s fees against both Standage and Crow “because of the vexatious and protracted nature of th[e] litigation.” Standage appealed, and this Court affirmed all issues except the award of attorney’s fees, which it remanded for a new determination. Id.

B. Background of the Present Litigation

On November 29, 1988, Standage filed the complaint in the present case alleging professional malpractice against his bankruptcy attorney, Joseph C. McDaniel, his firm, and employees of the firm. Standage filed an amended complaint on May 26,1989, alleging inter alia that Appellees committed malpractice when they failed to: (1) affirm a July 1, 1976, lease agreement between PIC and Standage within sixty days of the filing of the bankruptcy petitions pursuant to 11 U.S.C. § 365(d)(4); (2) inform Standage that pursuant to 11 U.S.C. § 365

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

Related

Arizona Republican Party v. Richer
Arizona Supreme Court, 2024
Flury v. Ortiz
Court of Appeals of Arizona, 2024
Mw2 Investments v. Imh Special
Court of Appeals of Arizona, 2019
In Re $15,379 in U.S. Currency
388 P.3d 856 (Court of Appeals of Arizona, 2016)
In Re $15,379.00 in U.S. Currency
Court of Appeals of Arizona, 2016
Villa De Jardines Ass'n v. Flagstar Bank, FSB
253 P.3d 288 (Court of Appeals of Arizona, 2011)
Taeger v. CATHOLIC FAMILY AND COMMUNITY SERVS.
995 P.2d 721 (Court of Appeals of Arizona, 1999)
Linder v. Brown & Herrick
943 P.2d 758 (Court of Appeals of Arizona, 1997)
Taliaferro v. Taliaferro
935 P.2d 911 (Court of Appeals of Arizona, 1996)
Harline v. Barker
912 P.2d 433 (Utah Supreme Court, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
866 P.2d 889, 177 Ariz. 221, 145 Ariz. Adv. Rep. 42, 1993 Ariz. App. LEXIS 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standage-v-jaburg-wilk-pc-arizctapp-1993.