Tash v. Saunders

736 P.2d 805, 153 Ariz. 322, 1987 Ariz. App. LEXIS 388
CourtCourt of Appeals of Arizona
DecidedJanuary 15, 1987
Docket2 CA-CIV 5880
StatusPublished
Cited by6 cases

This text of 736 P.2d 805 (Tash v. Saunders) 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
Tash v. Saunders, 736 P.2d 805, 153 Ariz. 322, 1987 Ariz. App. LEXIS 388 (Ark. Ct. App. 1987).

Opinion

OPINION

FERNANDEZ, Judge.

The court dismissed three counts of appellants’ complaint which involved allegations that appellees wrongfully interfered with appellants’ contractual relationship with a third party. The ruling apparently was based on a finding that the issue had been resolved in a previous lawsuit between the parties or that Arizona had no personal jurisdiction over appellees. We affirm.

Appellants Sy and Joy Tash own an art gallery in Scottsdale, Arizona. In June of 1982 they entered into two agreements with Stephen Reyes, an artist, which gave appellants the exclusive right to sell and distribute Reyes’ art. Reyes is a resident of Albuquerque, New Mexico.

Appellees Kraig and Loma Saunders are permanent residents of Lake City, Colorado. They are the principal shareholders of a Colorado corporation which does business as “The Glory Hole Art Gallery” in Lake City. In early 1981 appellees bought a Reyes painting from appellants while they were visiting Scottsdale. Thereafter appellees purchased Reyes’ paintings and lithographs through appellants, and the art work was sent to Colorado either from Scottsdale or Albuquerque. Most of the sales were conducted by telephone or through the mails.

Prior to filing this lawsuit, the appellants sued Reyes and appellees in another action. *324 Reyes was sued for breach of contract, and appellees were sued in three counts of wrongfully inducing Reyes to breach his exclusive contract with appellants and wrongfully interfering with appellants’ relationships with their customers. This earlier lawsuit was dismissed by Judge David Grounds on October 24, 1983, for lack of personal jurisdiction pursuant to Rule 12(b)(2), Rules of Civil Procedure, 16 A.R.S. Appellants did not appeal from that dismissal. The action against Reyes later resulted in a judgment in favor of appellants for Reyes’ breach of contract.

This lawsuit was filed on December 5, 1983, and alleged four counts as follows:, wrongful interference with the Reyes’ contract; wrongful interference with the relationship between appellants and their customers; request for an injunction restraining appellees’ conduct; and breach of contract (debt for art material).

The case was initially assigned to Judge Edmund Noyes, Jr. Appellees attempted to pay the debt alleged in count four by tendering the amount due by cashier’s check to appellants’ counsel, who refused it. Later appellees requested permission to tender the money into court to be distributed by the court. This request was not pursued and was denied by Judge Noyes. Appellees then filed a motion to have the litigation reassigned to Judge Grounds, which was granted over appellants’ objection. After Judge Grounds had ruled on protective orders pertaining to discovery procedures and had granted continuances, appellants filed a notice of change of judge. Judge Grounds refused to honor the notice.

Appellees filed a motion to dismiss on the grounds that no personal jurisdiction had been obtained as to the first three counts because appellants failed to show sufficient “minimum contacts” to satisfy the constitutional requisites of due process and on the grounds of collateral estoppel because of the ruling in the prior lawsuit. Appellees also moved for judgment on the pleadings as to count four on the grounds that it was only a ploy to obtain jurisdiction on the other counts and because appellees had never denied the debt and had tendered payment in full.

Appellant Joy Tash’s affidavit filed in this lawsuit in resistance to the motion to dismiss stated that appellees own two condominiums in Scottsdale and reside in one for part of the year. She stated that they have held promotional parties and have displayed art works of Stephen Reyes at the condominiums, that they have a Phoenix telephone and checking account and that they show the Scottsdale address and telephone on their business card. Appellants filed two other affidavits in this lawsuit, one of which stated that appellees conducted business in Scottsdale and the other of which stated facts in support of the contractual interference allegations. Appellees’ affidavits denied many of the appellants’ allegations.

The court granted the motion to dismiss counts one, two, and three and later granted appellants’ motion for summary judgment as to count four. After memoranda were submitted on the issue of attorney’s fees, the court granted the appellees judgment for attorney’s fees on counts one, two and three in the amount of $11,570. Appellants were granted judgment for the debt owed plus attorney's fees of $80.

CASE REASSIGNMENT

Appellants argue that the case should not have been reassigned to Judge Grounds because it differed from the earlier litigation. Maricopa County Local Rule 3.1, 17A A.R.S. (1986 Supp.), provides in part as follows:

c. Similar Cases. Those cases involving the same specific subject matter and the same principles of law or the same parties shall be assigned or reassigned to the division which received the case filed first as shown by the time stamp thereon.
d. Refiling. Cases refiled after dismissal may upon motion of either party be reassigned to the division to which the case was previously assigned.

We find no merit to appellants’ argument. We find that the two lawsuits were virtually the same and that this is a classic sitúa *325 tion for the proper application of this rule which promotes speedier dispositions and judicial economy.

NOTICE OF CHANGE OF JUDGE

This case was reassigned to Judge Grounds on February 24, 1984. After setting and resetting various motions for hearing, Judge Grounds on May 3, 1984, heard oral arguments by counsel on five motions, three of which dealt with discovery, attorney’s fees and protective orders. The last two motions were appellees’ motions to dismiss. At that time the court made an order dealing with the first three motions, established a schedule for discovery and reset the hearing on the motions to dismiss for August 29, 1984. The notice of change of judge was filed on August 3 and was denied on August 20.

Rule 42(f)(1)(D) of the Rules of Civil Procedure, 16 A.R.S., provides, in pertinent part, that:

A party waives his right to change of judge as a matter of right when, after a judge is assigned to preside at trial or is otherwise permanently assigned to the action, the party agrees to the assignment or participates before that judge in:
(i) Any judicial proceeding which concerns the merits of the action and involves the consideration of evidence or of affidavits____

Prior to the time appellants filed the notice, Judge Grounds had heard argument on the motions to dismiss. The documents filed prior to the notice included affidavits of parties and other persons. In continuing the motions to dismiss and establishing the discovery schedule, the court observed that “additional discovery would assist this Court in making a determination on the jurisdiction question____” Because the proceedings fell under the provisions of Rule 42, we find no error in the court’s refusal to honor the notice of change of judge.

ISSUE PRECLUSION AND PERSONAL JURISDICTION

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Cite This Page — Counsel Stack

Bluebook (online)
736 P.2d 805, 153 Ariz. 322, 1987 Ariz. App. LEXIS 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tash-v-saunders-arizctapp-1987.