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Rancho Pescado, Inc. v. Northwestern Mutual Life Insurance Co.
Citation:
140 Ariz. 174, 680 P.2d 1235 (1984)Facts
In 1971, Jones became interested in and studied the business of commercial catfish farming. As a result, Appellant entered into the business and chose the Gila Bend Canal to raise catfish. Appellant approached Appellee’s subsidiary, Painted Rock, to conduct a pilot program to determine the feasibility of raising catfish in the canal. After mixed results, Appellant submitted a license agreement to Painted Rock for approval but was rejected. Negotiations broke off in 1972 but restarted in July of 1973. Finally, in December 1973, Appellant and Appellee entered into a five-year licensing agreement.
Jones spent half of 1974 raising money for the operation and stocked catfish fingerlings in August 1974. Before Thanksgiving, Painted Rock notified Jones that the water flow would be shut off for the holidays, as usual. Jones complained, and the water was turned back on. Still, Appellee concluded that continued water flow through the canal, when not needed, was a severe interference with Painted Rock’s ranching operation. In December, Appellee notified Appellant that it was terminating the agreement for cause because Appellant’s demand for continuous flow interfered with the ranching operations was violating the license agreement.
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Topic Resources
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DamagesTopic Refresher Course
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