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Mac Enterprises, Inc. v. Del E. Webb Development Co.

Citations: 645 P.2d 1245; 132 Ariz. 331; 1982 Ariz. App. LEXIS 425Docket: 1 CA-CIV 4726

Court: Court of Appeals of Arizona; March 11, 1982; Arizona; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by Del E. Webb Development Co. (Webb) against a summary judgment in favor of Mac Enterprises, Inc. (Mac), concerning a sublease between Mac and Sun City Pro Shops (Pro Shops). The central issues on appeal revolve around whether Webb can invoke the Statute of Frauds as a defense, whether Webb's actions estopped such a defense, and whether Webb tortiously interfered with the sublease. The sublease entailed Mac leasing a snack shop from Pro Shops, which was initially authorized through an amendment to the primary lease between Webb and Pro Shops. The dispute arose when Webb terminated its lease with Pro Shops, which in turn affected the sublease with Mac. The trial court granted summary judgment to Mac, but the appellate court found that Webb was not a party to the sublease and upheld its Statute of Frauds defense. The court determined that no privity of estate or contract existed between Mac and Webb, invalidating Mac's claims of estoppel and waiver of the cancellation clause. As Webb was within its rights to terminate the lease with Pro Shops, it did not interfere with the sublease. Consequently, the appellate court reversed the summary judgment for Mac and directed judgment for Webb on both counts.

Legal Issues Addressed

Doctrine of Estoppel and Part Performance

Application: Mac argued that Webb is bound by the sublease through estoppel and part performance, but the court found no evidence supporting these claims.

Reasoning: Mac's argument regarding part performance is invalid as it was not referable to an oral contract with Webb, which is not established in the record, nor did Mac provide evidence to support claims of estoppel or acquiescence.

Privity of Estate and Contract

Application: The court concluded that no privity of estate or contract existed between Webb and Mac, and thus Mac's reliance on a waiver of the cancellation clause was unfounded.

Reasoning: The primary lease remains between Webb and Pro Shops, with no privity of estate or contract between Mac and Webb.

Statute of Frauds Defense

Application: Webb's defense under the Statute of Frauds, A.R.S. 44-101(6), is upheld as there is no written conveyance of the lease from Webb to Mac, and no legal exception applies.

Reasoning: Since Webb is the party charged and no written conveyance to Mac exists, the Statute of Frauds serves as a valid defense unless a legal exception applies.

Tortious Interference with Contract

Application: Webb did not tortiously interfere with Mac's sublease, as it acted within its rights under the primary lease's cancellation clause.

Reasoning: Additionally, Webb did not tortiously interfere with Mac's sublease since it acted within its rights to cancel Pro Shops' lease.