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Arizona Land Advisors, LLC v. Studio City Lofts, LLC

2016 WL 3884865 (2016)

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Arizona Land Advisors, LLC v. Studio City Lofts, LLC

Arizona Court of Appeals

2016 WL 3884865 (2016)

Facts

John Lupypciw was removed as the manager of Studio City Lofts, LLC (defendant). Despite this, Lupypciw entered into a listing agreement, purportedly on Studio City’s behalf, with Arizona Land Advisors, LLC (plaintiff). The agreement granted Arizona Land an exclusive right to sell property that Studio City owned. The agreement provided for a commission for Arizona Land if the property sold. Studio City was not aware of the agreement. Soon after Lupypciw signed the agreement, Studio City filed for bankruptcy. The bankruptcy settlement contained an acknowledgment that Lupypciw had been actively seeking to sell the property. Arizona Land was not a party to the bankruptcy settlement. Approximately three months after the settlement, without the involvement of Arizona Land, Studio City sold the property. Arizona Land sued Studio City, seeking its commission under the contract with Lupypciw. Arizona Land argued that the provision regarding Lupypciw in the bankruptcy settlement ratified the contract with Lupypciw. The superior court granted Studio City summary judgment. Arizona Land appealed.

Rule of Law

Issue

Holding and Reasoning (Johnsen, J.)

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