Goodman v. Physical Resource Engineering, Inc. , 229 Ariz. 25 ( 2011 )


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  •                                                                         FILED BY CLERK
    IN THE COURT OF APPEALS
    DEC 28 2011
    STATE OF ARIZONA
    DIVISION TWO                            COURT OF APPEALS
    DIVISION TWO
    MICHAEL A. GOODMAN, a married                 )
    man,                                          )     2 CA-CV 2011-0053
    )     DEPARTMENT B
    Plaintiff/Appellee,   )
    )     OPINION
    v.                         )
    )
    PHYSICAL RESOURCE                             )
    ENGINEERING, INC., an Arizona                 )
    corporation,                                  )
    )
    Defendant/Appellant.       )
    )
    APPEAL FROM THE SUPERIOR COURT OF PIMA COUNTY
    Cause No. C20092715
    Honorable Ted B. Borek, Judge
    REVERSED AND REMANDED
    Thompson-Krone, P.L.C.
    By Russell E. Krone                                                               Tucson
    Attorneys for Plaintiff/Appellee
    Meagher & Geer, P.L.L.P.
    By Kurt M. Zitzer and Thomas H. Crouch
    Scottsdale
    Attorneys for Defendant/Appellant
    E S P I N O S A, Judge.
    ¶1            Physical Resource Engineering, Inc. (PRE) appeals from a judgment
    entered after a jury trial in favor of Michael Goodman on his claim for breach of contract.
    PRE also challenges the trial court‟s denial of its motion for judgment as a matter of law
    pursuant to Rule 50, Ariz. R. Civ. P., and motion for a new trial pursuant to Rule 59,
    asserting there was no evidence a contract between PRE and Goodman had existed, and,
    in any event, under the circumstances of this case Arizona law limited Goodman to
    pursuing only a tort claim. Additionally, PRE contends the case should be remanded for
    a new trial on Goodman‟s negligence claim. For the reasons set forth below, we reverse
    and remand.
    Factual Background and Procedural History
    ¶2            We view “the evidence in a light most favorable to upholding the jury
    verdict.” Hutcherson v. City of Phoenix, 
    192 Ariz. 51
    , ¶ 13, 
    961 P.2d 449
    , 451 (1998).
    Goodman, a Tucson real estate developer, hired Tortolita Valley Homes (TVH) to
    construct two luxury duplex buildings on property Goodman owned on Fort Lowell
    Road. In April 2008, TVH hired PRE, a civil engineering, surveying, and geological
    engineering firm, to stake the location for Goodman‟s buildings according to a site plan
    prepared by Goodman‟s architect, Scott Isles, and approved by the City of Tucson.
    Staking each building required PRE to “dimensionally locate the house on the site [and]
    place four pins where the house went.”
    ¶3            According to the site plan, one of the buildings should have been located
    twenty feet, three inches south of the north property line, resulting in a twelve-foot-wide
    rear yard on the building‟s north side. PRE staked the building approximately six feet
    north of where it should have been built, and TVH constructed the building according to
    2
    the stakes, resulting in a yard depth of only six feet and a violation of setback and
    floodplain requirements. In September 2008, TVH and Isles determined the building
    location did not conform to the site plan, and Goodman subsequently sued PRE for
    breach of contract and professional negligence.1
    ¶4           PRE filed a motion for partial summary judgment in which it argued there
    was no contract between it and Goodman, and, furthermore, it had not breached its
    express agreement with TVH. PRE also contended that any claim Goodman might have
    against it could be based only on the alleged breach of a professional duty, limiting
    Goodman to a negligence claim.       The trial court denied the motion following oral
    argument.
    ¶5           During trial, PRE moved for judgment as a matter of law pursuant to Rule
    50, again arguing there was no contract between the parties and the verbal contract
    between PRE and TVH had not been breached.            As to the negligence claim, PRE
    contended that Goodman had failed to introduce sufficient evidence establishing PRE had
    staked the building in the wrong location or, alternatively, that Goodman and Isles should
    be found comparatively at fault. The court denied PRE‟s motion. Following the close of
    evidence, PRE renewed its Rule 50 motion and later moved for a new trial pursuant to
    Rule 59 on the same grounds, which the court again denied. The jury found that a
    1
    The trial court dismissed Goodman‟s additional claim for breach of the covenant
    of good faith and fair dealing. TVH subsequently assigned to Goodman any claims it
    may have had against PRE. The court denied Goodman‟s subsequent motion to amend
    the complaint to add the assigned claims and Goodman has not challenged that ruling on
    appeal.
    3
    contract existed between Goodman and PRE, and that PRE had breached it, causing
    damages of $217,314. The court entered judgment in favor of Goodman in that amount,
    and awarded him attorney fees and costs under A.R.S. §§ 12-341.01 and 12-322. We
    have jurisdiction pursuant to A.R.S. §§ 12-120.21(A)(1) and 12-2101(A)(1), (A)(5)(a).
    Discussion
    ¶6            PRE contends the trial court erred in denying its motions for judgment as a
    matter of law on Goodman‟s breach of contract claim because there was no evidence a
    contract existed between PRE and Goodman under either of two theories Goodman
    advanced at trial. We review de novo the denial of a motion for judgment as a matter of
    law under Rule 50. A Tumbling-T Ranches v. Flood Control Dist. of Maricopa Cnty.,
    
    222 Ariz. 515
    , ¶ 14, 
    217 P.3d 1220
    , 1229 (App. 2009); Shoen v. Shoen, 
    191 Ariz. 64
    , 65-
    66, 
    952 P.2d 302
    , 303-04 (App. 1997). We will uphold the ruling unless “„the facts
    produced in support of the claim or defense have so little probative value, given the
    quantum of evidence required, that reasonable people could not agree with the conclusion
    advanced by the proponent of the claim or defense.‟” A Tumbling-T Ranches, 
    222 Ariz. 515
    , ¶ 
    14, 217 P.3d at 1229
    , quoting Orme Sch. v. Reeves, 
    166 Ariz. 301
    , 309, 
    802 P.2d 1000
    , 1008 (1990). Similarly, it is for the trial court to determine, in the exercise of its
    discretion, whether to grant a motion for a new trial on the ground that the verdict is
    against the weight of the evidence; absent an abuse of discretion, we will not disturb the
    court‟s ruling. Ogden v. J.M. Steel Erecting, Inc., 
    201 Ariz. 32
    , ¶ 15, 
    31 P.3d 806
    , 810
    (App. 2001). Both rulings will be affirmed “[i]f any substantial evidence could lead
    4
    reasonable persons to find the ultimate facts to support a verdict.” 
    Id. (motion for
    new
    trial); Hutcherson, 
    192 Ariz. 51
    , ¶ 
    13, 961 P.2d at 451
    (motion for judgment as a matter
    of law).
    Implied Contract between PRE and Goodman
    ¶7           To prevail on a breach of contract claim, Goodman was required to prove a
    contract existed between him and PRE, PRE breached the contract, and Goodman
    suffered damages as a result. See Graham v. Asbury, 
    112 Ariz. 184
    , 185, 
    540 P.2d 656
    ,
    657 (1975), citing Clark v. Compania Ganadera de Cananea, S.A., 
    95 Ariz. 90
    , 94, 
    387 P.2d 235
    , 238 (1963). For a valid contract to have been formed between them, there must
    have been an offer, acceptance of the offer, and consideration, K-Line Builders, Inc. v.
    First Fed. Sav. & Loan Ass’n, 
    139 Ariz. 209
    , 212, 
    677 P.2d 1317
    , 1320 (App. 1983), and
    they must have intended to be bound by the agreement, see Schade v. Diethrich, 
    158 Ariz. 1
    , 9, 
    760 P.2d 1050
    , 1058 (1988). An offer has no binding effect unless and until
    accepted by the offeree to whom the offer was directed. AROK Constr. Co. v. Indian
    Constr. Servs., 
    174 Ariz. 291
    , 294, 
    848 P.2d 870
    , 873 (App. 1993) (subcontractor‟s bid to
    contractor and owner). An agreement can be implied and is enforceable where there is a
    valid offer and acceptance, and the only term missing is the final price. 
    Schade, 158 Ariz. at 5-11
    , 760 P.2d at 1054-60.
    ¶8           The parties agree there was no written or express contract between them for
    the staking job. Goodman contends, however, that based on evidence of their prior
    course of dealing and other circumstances, the jury reasonably could infer PRE had
    5
    intended to enter into a contract with him.2 See Carroll v. Lee, 
    148 Ariz. 10
    , 13, 
    712 P.2d 923
    , 926 (1986) (implied contract, with same legal effect as express contract, may
    be inferred as matter of reason and justice from acts and conduct of parties and
    circumstances surrounding their transaction). Goodman argues that PRE was aware he
    was the owner of the property to be staked, he knew PRE was working on the job, and
    PRE had worked on a number of his construction projects in the past. But that does not
    establish that either Goodman or PRE intended to enter into a contract with one another
    on this particular project. See Keith Equip. Co. v. Casa Grande Cotton Fin. Co., 
    187 Ariz. 259
    , 262, 
    928 P.2d 683
    , 686 (App. 1996) (course of dealing does not create
    contract, and conduct of businesses to be interpreted in commercial context of
    interactions); cf. Johnson Int’l, Inc. v. City of Phoenix, 
    192 Ariz. 466
    , ¶ 26, 
    967 P.2d 607
    ,
    611-12 (App. 1998) (parties may be contractually bound if intent to do so clear from
    surrounding circumstances and parties‟ conduct, and there has been mutual assent).
    ¶9            Although Goodman repeatedly points to evidence PRE had knowledge,
    from a variety of sources, that he was the owner of the property, he provides no authority
    for the proposition that such knowledge established the existence of a contract with him
    rather than TVH. It is undisputed that PRE was hired by TVH and dealt exclusively with
    TVH throughout the course of the project. Thus, other than possibly through TVH,
    2
    In his complaint, the only theory Goodman advanced was that a contract had been
    formed as a result of TVH being his agent in its dealings with PRE. The trial court
    denied Goodman‟s motion to amend his complaint to add a course-of-dealing theory. We
    may, however, affirm the jury‟s verdict for any reason supported by the evidence. See
    Hutcherson v. City of Phoenix, 
    192 Ariz. 51
    , ¶ 13, 
    961 P.2d 449
    , 451 (1998).
    6
    acting as Goodman‟s agent as we address infra, there was no evidence Goodman made an
    offer to PRE, much less that PRE accepted an offer from Goodman, to perform the
    staking on this project.
    ¶10           Goodman nevertheless contends that a contract with PRE was implied
    because PRE president Dan White had met with him personally to discuss possible
    solutions after it was learned the property had been staked in the wrong place. But we
    agree with PRE that such conduct occurring after the fact cannot serve as the basis for
    finding an implied contract existed given that there was an express contract between PRE
    and TVH. See Brown v. Beck, 
    68 Ariz. 139
    , 143, 
    202 P.2d 528
    , 530 (1949) (no implied
    agreement where express contract existed for labor performed); cf. Miller Cattle Co. v.
    Mattice, 
    38 Ariz. 180
    , 189, 
    298 P. 640
    , 643 (1931) (conversations following formation of
    express contract could not establish new contract, absent new consideration).
    Accordingly, we conclude there was insufficient evidence from which reasonable jurors
    could find any type of direct contract existed between PRE and Goodman. We therefore
    turn to the question whether TVH was acting as Goodman‟s agent when it hired PRE,
    thereby creating a contract between Goodman and PRE.
    Contract Formed through Agency
    ¶11           PRE argues there was no evidence that TVH was acting as Goodman‟s
    agent when it employed PRE to stake the property; rather, the record shows PRE entered
    into an express oral agreement only with TVH, and nothing said or done created a
    contractual relationship between PRE and Goodman.          Goodman counters that the
    7
    circumstances, acts, and conduct of Goodman and TVH manifested an agency
    relationship that resulted in a binding contract between him and PRE. Goodman, as the
    proponent of the agency theory, had the burden of proof. Brown v. Ariz. Dep’t of Real
    Estate, 
    181 Ariz. 320
    , 326, 
    890 P.2d 615
    , 621 (App. 1995).
    ¶12           “Agency is the fiduciary relationship that arises when one person (a
    „principal‟) manifests assent to another person (an „agent‟) that the agent shall act on the
    principal‟s behalf and subject to the principal‟s control, and the agent manifests assent or
    otherwise consents so to act.” Restatement (Third) of Agency § 1.01 (2006) (hereinafter
    “Restatement”).3 There are two types of agency, express and apparent. Curran v. Indus.
    Comm’n, 
    156 Ariz. 434
    , 437, 
    752 P.2d 523
    , 526 (App. 1988).4 An agent holds express
    authority “„[i]f there is evidence that the principal has delegated authority by oral or
    written words which authorize him to do a certain act or series of acts.‟” Premium
    Cigars Int’l, Ltd. v. Farmer-Butler-Leavitt Ins. Agency, 
    208 Ariz. 557
    , ¶ 30, 
    96 P.3d 555
    ,
    565 (App. 2004), overruled on other grounds by Webb v. Gittlen, 
    217 Ariz. 363
    , 
    174 P.3d 3
           In the absence of prior decisions to the contrary, we may seek guidance from the
    Restatement when it is applicable. Maricopa P’ships, Inc. v. Petyak, 
    163 Ariz. 624
    , 626,
    
    790 P.2d 279
    , 281 (App. 1989).
    4
    Apparent agency exists when “„the principal has intentionally or inadvertently
    induced third persons to believe that such a person was its agent although no actual or
    express authority was conferred on him as agent.‟” 
    Curran, 156 Ariz. at 437
    , 752 P.2d at
    526, quoting Canyon State Canners v. Hooks, 
    74 Ariz. 70
    , 73, 
    243 P.2d 1023
    , 1025
    (1952). “Apparent authority is the power held by an agent or other actor to affect a
    principal‟s legal relations with third parties when a third party reasonably believes the
    actor has authority to act on behalf of the principal and that belief is traceable to the
    principal‟s manifestations.” Restatement § 2.03. Neither party argues that Goodman
    “intentionally or inadvertently induced” PRE to believe TVH was Goodman‟s agent. See
    
    Curran, 156 Ariz. at 437
    , 752 P.2d at 526.
    8
    275 (2008), quoting 
    Curran, 156 Ariz. at 437
    , 752 P.2d at 526. Generally, whether
    agency exists is a question of fact, but when the material facts are not in dispute, the
    existence of such a relationship is a question of law for the court to decide. Ruesga v.
    Kindred Nursing Ctrs., L.L.C., 
    215 Ariz. 589
    , ¶ 21, 
    161 P.3d 1253
    , 1260 (App. 2007).
    ¶13             Goodman contends the principal‟s intent is controlling in determining
    whether an agency relationship was created, citing Brutinel v. Nygren, 
    17 Ariz. 491
    , 497,
    
    154 P. 1042
    , 1044 (1916), and insists the evidence established that such a relationship
    existed here.     Goodman argues the record shows he hired TVH to oversee the
    construction of the duplex and hire subcontractors for the project, asserting he had done
    so in the past, and points to his own testimony that TVH worked for him and only him at
    that time.   He further argues this court has recognized course of dealing between
    principal and agent as a substantial factor for implying an agency relationship, citing Phx.
    W. Holding Corp. v. Gleeson, 
    18 Ariz. App. 60
    , 65-66, 
    500 P.2d 320
    , 325-26 (1972)
    (agency may be established from relation of parties to each other and to subject matter,
    their acts and conduct); Kjerschow v. Daggs, 
    24 Ariz. 207
    , 213-16, 
    207 P. 1089
    , 1091-92
    (1922); and 
    Brutinel, 17 Ariz. at 497
    , 154 P. at 1044 (principal‟s intent to form agency
    may be implied from particular circumstances).
    ¶14             PRE disputes Goodman‟s legal claims, contending the role of a general
    contractor does not imply an agency relationship with the property owner, citing
    Flanigan & Sons, Inc. v. Childs, 
    248 A.2d 473
    , 478 (Md. 1968) (no contract between
    subcontractor and owner even though subcontractor possessed site plan identifying owner
    9
    and subcontractor was informed details of construction would be discussed with owners),
    and Summerall Elec. Co. v. Church of God at Southaven, 
    25 So. 3d 1090
    , ¶¶ 21, 24 (Miss.
    Ct. App. 2010) (statements owner entrusted general contractor with authority to do what
    was necessary for construction did not establish agency). PRE points to evidence that
    Goodman considered TVH an independent contractor, and the owner of TVH, Jesse
    Patterson, identified himself as a general contractor rather than an agent for Goodman.
    And PRE notes Patterson clarified that although he began to work exclusively for
    Goodman in 2007 as a general contractor, he was working on other jobs for other owners
    at the time he hired PRE. Finally, PRE emphasizes that neither Patterson nor Goodman
    ever testified that TVH had acted in the capacity of an agent in contracting with PRE, and
    asserts that the agency theory is merely an after-the-fact justification to support
    Goodman‟s contract claim.
    ¶15          Although agency generally is a question of fact, the issue of agency may be
    decided as a matter of law where “„no competent evidence legally sufficient to prove it
    has been introduced‟” and “„the material facts from which it is to be inferred are
    undisputed and only one conclusion can be reasonably drawn therefrom.‟” Schenks v.
    Earnhardt Ford Sales Co., 
    9 Ariz. App. 555
    , 557, 
    454 P.2d 873
    , 875 (1969), quoting 3
    C.J.S. Agency § 330(a). Where no direct contract exists between a subcontractor and
    property owner, our courts have held a subcontractor has no standing to sue the owner for
    breach of contract solely based upon the alleged agency of a general contractor. Keefer v.
    Lavender, 
    74 Ariz. 24
    , 26, 
    243 P.2d 457
    , 459 (1952) (general contractor not agent of
    10
    owner, and statutory agency created through mechanics‟ liens did not establish general
    agency); see also Fagerlie v. Markham Contracting Co., 
    227 Ariz. 367
    , ¶ 18, 
    258 P.3d 185
    , 190 (App. 2011) (general contractor statutory agent of owner for mechanics‟ lien
    purposes only and not general agent).
    ¶16           In Stratton v. Inspiration Consol. Copper Co., 
    140 Ariz. 528
    , 529-30, 
    683 P.2d 327
    , 328-29 (App. 1984), a subcontractor sought to recover unpaid funds from a
    property owner, alleging breach of an implied contract formed between the owner and
    subcontractor through the general contractor‟s agency. Although the owner did not
    contract directly with the subcontractor, the owner approved the general contractor‟s
    choice of subcontractor and inspected the subcontractor‟s work from time to time. 
    Id. at 529,
    683 P.2d at 328. This court held a general contractor is not an owner‟s agent except
    in the limited statutory context of mechanics‟ liens. 
    Id. at 531,
    683 P.2d at 330. We
    reasoned that privity of contract must exist before a party may seek to enforce a contract,
    and, since there was no agency, no privity of contract existed between the subcontractor
    and owner, and the subcontractor had no claim for breach of contract against the owner.
    
    Id. Although Stratton
    and the above cases relate to the opposite scenario from the one at
    hand—an owner seeking recovery against a subcontractor—we find them controlling.
    ¶17           At trial, Goodman testified “[Patterson] is in charge of doing all the
    construction work, getting it completed and getting it finaled out with the city,” and that
    Patterson is “an independent contractor” who does what Goodman requests on the
    projects. Patterson testified, not inconsistently with Goodman‟s statements, that he alone
    11
    was responsible for hiring subcontractors, and Goodman did not tell him which ones to
    employ. Goodman identifies no evidence in the record that he exercised authority over
    TVH‟s hiring process or decisions. See Urias v. PCS Health Sys., Inc., 
    211 Ariz. 81
    ,
    ¶¶ 33, 37-41, 
    118 P.3d 29
    , 35, 36 (App. 2005) (no agency where insurer did not control
    claim processor‟s negotiations to fulfill contract, although claim processor received funds
    “[o]n behalf of ” insurer); Brown v. Ariz. Dep’t of Real 
    Estate, 181 Ariz. at 326
    , 890 P.2d
    at 621 (right to control transaction factor in determining agency relationship); see also
    Indep. Gin Co. v. Parker, 
    19 Ariz. App. 413
    , 415, 
    508 P.2d 78
    , 80 (1973) (assignee not
    lessee‟s agent where owner leased lands and lessee relinquished to assignee all control
    and dominion over farming operations, leased premises, and operating machinery).
    Moreover, although TVH had used PRE as a subcontractor for Goodman‟s projects
    several times previously, there was no evidence that Goodman had utilized TVH in an
    agency capacity in the past to form contracts between Goodman and subcontractors that
    TVH had hired. See 
    Kjerschow, 24 Ariz. at 215-18
    , 207 P. at 1092-93 (series of real
    estate transactions in which representative had acted on behalf, and at direction, of
    enterprise in acquiring properties demonstrated continuing agency); Holsclaw v. Catalina
    Sav. & Loan Ass’n, 
    13 Ariz. App. 362
    , 366-67, 
    476 P.2d 883
    , 887-88 (1970) (collection
    agent‟s long and repeated course of accepting payments on behalf of mortgage holders
    created agency by implication).
    ¶18           Furthermore, even assuming arguendo that TVH was Goodman‟s agent,
    there is no evidence TVH ever disclosed it was acting in that capacity when it engaged
    12
    PRE‟s services to stake the property. A principal is undisclosed if the third party has no
    notice the agent is acting for a principal. Restatement § 1.03(2)(b); cf. Myers-Leiber Sign
    Co. v. Weirich, 
    2 Ariz. App. 534
    , 536, 
    410 P.2d 491
    , 493 (1966) (for agent to avoid
    personal liability when acting on behalf of principal, agent must disclose agency and
    identify principal at time of transaction). It appears the majority of cases dealing with
    undisclosed principals arise in the context of third parties or agents attempting to hold the
    principal liable on a contract.5 When the situation is reversed, however, it is unlikely a
    third party can accurately assess the interests at stake, because the third party is unaware
    of the actual party to the contract. See Restatement § 2.03 cmt. f (if third party in doubt
    whether actor represents actor‟s interests only, third party lacks reasonable basis to
    believe actor has power to affect principal‟s legal position).
    ¶19           The record supports PRE‟s assertion that TVH did not inform PRE that it
    was acting as Goodman‟s agent and, thus, that PRE was contracting with Goodman,
    when TVH hired PRE to stake the property. Patterson testified as follows:
    5
    See, e.g., Litchfield v. Green, 
    43 Ariz. 509
    , 510, 
    33 P.2d 290
    , 290 (1934)
    (architect sued alleged principal to collect for work performed on principal‟s behalf after
    putative agent hired architect without lawful authority); 
    Kjerschow, 24 Ariz. at 207
    , 207
    P. at 1089 (plaintiff sued to recover from defendants for land transaction, alleging
    intermediary defendants‟ agent); Phx. W. Holding 
    Corp., 18 Ariz. App. at 63
    , 500 P.2d at
    323 (contracting party sought to enforce against corporate principal lease repayment
    agreement entered into by corporation‟s putative agent); 
    Schenks, 9 Ariz. App. at 556
    ,
    454 P.2d at 874 (automobile-accident victims sued automobile dealer for personal
    injuries sustained in accident caused by dealer‟s alleged agent); Corral v. Fid. Bankers
    Life Ins. Co., 
    129 Ariz. 323
    , 324-25, 
    630 P.2d 1055
    , 1056-57 (App. 1981) (decedent‟s
    estate sued insurance company to enforce life-insurance contract submitted to insurance
    agent but not accepted by insurance company at time of decedent‟s death).
    13
    Q: As the general contractor, you‟re the one that‟s
    responsible for hiring the subcontractors?
    A: Yes.
    Q: Mr. Goodman doesn‟t tell you which subs to hire?
    A: No.
    Q: If there‟s a problem with the sub‟s work that‟s between
    you and the sub?
    A: Yes.
    Q: When you hired PRE to work on projects, there were
    some projects that you were working on for Mr.
    Goodman but others that you were working on for other
    people; correct?
    A: Yes.
    Q: When you hired PRE to do construction staking, you
    never told them I‟m doing this work for Mr. Goodman or
    somebody else?
    A: No.
    Q: When you hired them, they were working for you[?]
    A: Yes.
    Goodman nonetheless argues that PRE was aware of an agency relationship between
    Goodman and TVH, relying on two other contracts between PRE and TVH pertaining to
    other work performed on the same property that identified Goodman as “owner.”
    Goodman also points out PRE had possessed a hydrology report for the property that had
    been prepared for Goodman. Further, PRE had worked on Goodman‟s projects in the
    past, and PRE recognized Patterson “comes in on behalf of Mike Goodman for his
    14
    projects.” But it is not the duty of the third person to determine the existence of a
    principal, rather the duty is on the agent to disclose the principal at the time of the
    transaction. Mahan v. First Nat’l Bank of Ariz., 
    139 Ariz. 138
    , 141, 
    677 P.2d 301
    , 304
    (App. 1984), citing Myers-Leiber Sign 
    Co., 2 Ariz. App. at 536
    , 410 P.2d at 493.
    Goodman directs us to no evidence that at the time TVH hired PRE, it informed PRE or
    indicated in any way that it was doing so in a representative capacity for Goodman.
    Finally, even if Goodman had given TVH authority to bind him to some contracts, there
    is no evidence he directed TVH to enter into this particular contract with PRE on his
    behalf.
    ¶20          Because there is no evidence TVH was acting as Goodman‟s agent for the
    staking contract, and PRE had no notice otherwise that Goodman was a party to the
    contract, there was insufficient evidence for the jury to have found the existence of a
    contract between PRE and Goodman based upon an agency theory.              See generally
    Restatement § 2.03 cmt. f (where principal undisclosed, third party has no knowledge
    principal is party to contract). Accordingly, we conclude the trial court erred in denying
    PRE‟s Rule 50 and 59 motions.
    ¶21          Because of our resolution of the contract issues, we need not address PRE‟s
    additional argument that Arizona law limits Goodman to pursuing only remedies under
    tort law.
    Disposition
    ¶22          For the reasons set forth above, we reverse the trial court‟s entry of
    judgment in favor of Goodman on his claim for breach of contract and its order denying
    15
    PRE‟s motions for post-trial relief under Rules 50 and 59, as well as its award of $80,000
    in attorney fees.    PRE has requested an award of its attorney fees under A.R.S.
    § 12-341.01, and, because it is the successful party on appeal, we grant its reasonable fees
    upon compliance with Rule 21, Ariz. R. Civ. App. P. See Schweiger v. China Doll Rest.,
    Inc., 
    138 Ariz. 183
    , 189, 
    673 P.2d 927
    , 933 (App. 1983). Goodman‟s request for attorney
    fees on appeal is denied, and this case is remanded to the trial court for further
    proceedings consistent with this opinion.
    /s/ Philip G. Espinosa
    PHILIP G. ESPINOSA, Judge
    CONCURRING:
    /s/ Garye L. Vásquez
    GARYE L. VÁSQUEZ, Presiding Judge
    /s/ Virginia C. Kelly
    VIRGINIA C. KELLY, Judge
    16
    

Document Info

Docket Number: 2 CA-CV 2011-0053

Citation Numbers: 229 Ariz. 25, 270 P.3d 852, 2011 Ariz. App. LEXIS 218

Judges: Espinosa, Vásquez, Kelly

Filed Date: 12/28/2011

Precedential Status: Precedential

Modified Date: 11/2/2024

Authorities (30)

P. Flanigan & Sons, Inc. v. Childs , 251 Md. 646 ( 1968 )

Fagerlie v. MARKHAM CONTRACTING CO., INC. , 227 Ariz. 367 ( 2011 )

Mahan v. First Nat. Bank of Arizona , 139 Ariz. 138 ( 1984 )

Canyon State Canners, Inc. v. Hooks , 74 Ariz. 70 ( 1952 )

Stratton v. Inspiration Consolidated Copper Co. , 140 Ariz. 528 ( 1984 )

Brown v. Beck , 68 Ariz. 139 ( 1949 )

Orme School v. Reeves , 166 Ariz. 301 ( 1990 )

Ruesga v. Kindred Nursing Centers West, L.L.C. , 215 Ariz. 589 ( 2007 )

Johnson International, Inc. v. City of Phoenix , 192 Ariz. 466 ( 1998 )

Carroll v. Lee , 148 Ariz. 10 ( 1986 )

Corral v. Fidelity Bankers Life Insurance , 129 Ariz. 323 ( 1981 )

Shoen v. Shoen , 191 Ariz. 64 ( 1997 )

Litchfield v. Green , 43 Ariz. 509 ( 1934 )

Brown v. Arizona Department of Real Estate , 181 Ariz. 320 ( 1995 )

Hutcherson v. City of Phoenix , 192 Ariz. 51 ( 1998 )

Phoenix Western Holding Corporation v. Gleeson , 18 Ariz. App. 60 ( 1972 )

K-Line Builders v. First Fed. Sav. & Loan Ass'n , 139 Ariz. 209 ( 1983 )

Holsclaw v. Catalina Savings & Loan Association , 13 Ariz. App. 362 ( 1970 )

Ogden v. J.M. Steel Erecting, Inc. , 201 Ariz. 32 ( 2001 )

A Tumbling-T Ranches v. Flood Control District , 222 Ariz. 515 ( 2009 )

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