RANCHO PESCADO, INC. V. NORTHWESTERN MUTUAL LIFE INS. CO.
680 P.2d 1235 (1984)
NATURE OF THE CASE: Rancho (P) appealed a judgment, which granted Mutual's (D) motion for
judgment notwithstanding the verdict in an action against D for breach of contract.
FACTS: P became interested in and began studying the business of commercial catfish
farming. P determined that the Gila Bend Canal would be an ideal location to raise catfish.
The Gila Bend Canal was owned D and used to deliver underground water to a large ranch
operated by a wholly owned subsidiary of D. P made a proposal to conduct a pilot program to
determine the feasibility of raising catfish in the canal. After conducting a brief
experimental program with mixed results, P submitted a license agreement for approval. It
was rejected. Negotiations began again in July, 1973. In December, 1973, a license
agreement, granting P the exclusive right to raise fish in a five-mile portion of the canal
for a period of five years, was entered into between P and D. P was notified by D that the
water flow in the canal would be shut off, as usual, for the holidays. P complained and the
water was eventually turned back on. D eventually concluded that continued flow of water
through the canal when not needed for its ranch operations and on December 10, 1974, D
notified P by letter that it was terminating the license agreement for cause because P's
demand for continuous flow of water interfered with the ranching operations in violation of
paragraph two of the license agreement. P filed a complaint for damages, including loss of
future profits, alleging D had breached the license agreement. The jury returned a verdict
for P in the amount of $2.5 million. D filed a motion for judgment N.O.V. The court granted
it and reduced the amount of damages to $101,510, plus attorney's fees. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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