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Kerley v. Nu-West, Inc.

Court of Appeals of Arizona
762 P.2d 631 (Ariz. Ct. App. 1988)


L. C. Jacobson and Resorco, Inc. (defendants) held an interest in land. In 1980, they sold fifteen acres of the land to Robert Kerley (plaintiff) and retained their interest in the surrounding land. The sale agreement contained provisions that Kerley would develop, improve, and resell his land. This would increase the value of the remaining land. Also, before Kerley could sell any land, he would have to draw up an architectural plan for the land and have it approved by Jacobson. Finally, Kerley was to pay Resorco 10 percent of the sales price for each improved portion of the property. Resorco could buy back all the land that was not developed by 1988. Sometime later, Kerley sued Jacobson, Resorco, and Nu-West, Inc. (Resorco’s successor-in-interest). Kerley argued that the agreement was an unreasonable restraint on alienation of the property and therefore void. He asked the court to rescind the contract. The trial court granted summary judgment against Kerley, and he appealed.

Rule of Law


Holding and Reasoning (Kleinschmidt, J.)

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