Kerley v. Nu-West, Inc.
Court of Appeals of Arizona
762 P.2d 631 (Ariz. Ct. App. 1988)
Jacobson and Resorco (defendants) sold Kerley (plaintiff) fifteen acres, retaining their interest in the surrounding land, under an agreement requiring Kerley to develop, improve, and resell his land (increasing the value of the remaining land), obtain Jacobson's approval of any architectural plan before selling any portion, pay Resorco 10 percent of the sales price for each improved portion sold, and allowing Resorco to repurchase any undeveloped portion by 1988. Kerley later sued Jacobson, Resorco, and Nu-West (Resorco's successor), arguing the agreement was an unreasonable restraint on alienation and seeking rescission; the trial court granted summary judgment against Kerley, and he appealed.
Whether a restraint on alienation is valid if it is reasonably designed to attain or encourage an accepted social or economic end.