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Edward Greenband Enterprises of Arizona v. Pepper

Citations: 538 P.2d 389; 112 Ariz. 115; 1975 Ariz. LEXIS 325Docket: 11691

Court: Arizona Supreme Court; July 15, 1975; Arizona; State Supreme Court

Narrative Opinion Summary

In this case, Edward Greenband Enterprises of Arizona appealed a jury's $15,000 verdict favoring Eugene and Marilyn Pepper for breach of an employment contract, while the Peppers cross-appealed the dismissal of a fraud count. The primary legal issues revolved around breach of contract and fraud in the inducement, with the appellant arguing against inconsistent claims without an election of remedies, fearing double recovery. The trial court dismissed the fraud claim, instructing the jury solely on breach of contract, and the appellant challenged this, citing the statute of frauds under A.R.S. 44-101 due to the oral contract's indefinite duration. However, the possibility of performance within a year exempted the contract from the statute's constraints, leaving the contract's duration to the jury's discretion. Additionally, the appellant's objections to jury instructions were inadequately specified, breaching procedural rules. The court's failure to provide a specific instruction on damages measurement was deemed an error, leading to a partial overturning of the judgment. The case was remanded for a reevaluation of damages, maintaining liability as previously determined, with guidance from Chief Justice Cameron and Justice Holohan.

Legal Issues Addressed

Inconsistent Pleading under Arizona Civil Procedure Rules

Application: The court affirmed the right to plead inconsistent claims, allowing the appellees to maintain both breach of contract and fraud claims simultaneously.

Reasoning: The court emphasized that a party is not required to elect a legal theory prematurely, as this could hinder their ability to adapt to evidence during the trial.

Jury Instructions on Material Breach

Application: The trial court's instructions on what constitutes a material breach were found to be sufficient, despite objections from the appellant.

Reasoning: The court's instructions on what constitutes a material breach were deemed sufficient.

Measure of Damages for Breach of Employment Contract

Application: The court found error in failing to instruct the jury on the appropriate methods for measuring damages, necessitating a remand for reevaluation of damages.

Reasoning: The jury's ability to accurately assess damages was compromised due to the court's failure to instruct them on the appropriate methods for measuring damages.

Procedural Error in Jury Instruction Objections

Application: The appellant's failure to specify reasons for objecting to jury instructions violated procedural rules, impacting the court's ability to address potential errors.

Reasoning: The appellant also objected to the trial court's refusal to provide specific jury instructions, but failed to adequately specify its reasons for these objections, violating Rule 51(a) of the Rules of Civil Procedure.

Statute of Frauds under A.R.S. 44-101

Application: The court determined that the possibility of performance within one year removes an oral agreement from the statute of frauds, allowing the jury to infer the contract's duration.

Reasoning: However, precedents indicate that a possibility of performance within one year removes an oral agreement from the statute's constraints.