Amanti Electric, Inc. v. Engineered Structures, Inc.
229 Ariz. 430
| Ariz. Ct. App. | 2012Background
- In June 2007, Engineered Structures, Inc. (ESI) entered into subcontracts with Amanti Electric, Inc. to perform electrical work on two supermarkets in Pima County, Arizona.
- In November 2008, Amanti sued ESI and Western Surety Co. for $630,127 allegedly owed under the contract.
- In December 2008, ESI mailed a check to Amanti for $409,055, which Amanti did not deposit.
- In February 2010, ESI placed a stop-payment order on the December 2008 check without Amanti’s knowledge.
- In March 2010, the parties settled; the settlement provided $130,000 as full and final payment of all claims and the action was dismissed with prejudice.
- In September 2010, Amanti attempted to deposit the 2008 check but the bank refused due to the stop-payment order, and ESI asserted the settlement barred any further claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 60(c)(6) relief can be used when earlier clauses apply | Amanti argues extraordinary circumstances justify 60(c)(6) relief | ESI contends relief is mutually exclusive to clauses 1–5 | Relief under 60(c)(6) may be considered despite 1–5; totality of circumstances governs on remand |
| Whether the court properly weighed totality of facts to grant relief | Amanti asserts undisclosed stop-payment and resulting inequity support relief | ESI argues no basis for 60(c)(6) relief given existing settlements | Trial court must evaluate totality of circumstances; remand for reconsideration |
| Whether the court erred by not considering equities surrounding the stop-payment and settlement | Amanti contends ESI’s nondisclosure and windfall justify relief | ESI argues no relief due to finality and settlement terms | Court should assess exceptional circumstances and justice in light of all facts; remand |
Key Cases Cited
- Park v. Strick, 0137 Ariz. 100 (Arizona 1983) (finality yields to extraordinary circumstances)
- Roll v. Janca, 22 Ariz.App. 335 (Ariz. App. 1974) (Rule 60(c)(6) relief available under extraordinary circumstances)
- Gendron v. Skyline Bel Air Estates, 121 Ariz. 367 (Ariz. 1979) (need to consider totality of circumstances)
- Webb v. Erickson, 134 Ariz. 182 (Ariz. 1982) (60(c) relief not mutually exclusive; factors may justify 60(c)(6) relief)
- Ungar v. Palestine Liberation Org., 599 F.3d 79 (1st Cir. 2010) (holistic, case-specific factors inform 60(b) relief)