ExecutiveLoyalty.org

U.S. - Arizona


Choice of Law


  • See Pathway Med. Technologies, Inc. v. Nelson, Case No. CV11-0857 PHX DGC (D.Ariz., Sept. 30, 2011), re AZ law applies where WA law would have provided for non-compete terms and judicial remedies not allowable under AZ law. 


Damages Generally for Breach of Non-compete:


See Phelps v. Gilbraith, Arizona Court of Appeals 2nd Div. (10/29/2010) in which an Arizona court addresses the damages payable for the breach of a non-competition provision in a sale of business context, and cites the following authority.


  • Arizona: See, e.g., McNutt Oil & Refining Co. v. D’Ascoli, 79 Ariz.28, 32-33, 281 P.2d 966, 969-70 (1955) (plaintiff may recover “all damages which flowed as a direct and immediate result” of breach); Martin v. La Fon, 55 Ariz. 196, 199, 100 P.2d 182, 183 (1940) (“gains or profits prevented and lost are a proper element from which to estimate plaintiff?s damages” in breach of contract to assign lease); 
  • Idaha: Dunn v. Ward, 670 P.2d 59, 61 (Idaho App. 1983) (“The measure of damages is not the amount of profits made by the defendant, rather it is the amount of profit lost to the plaintiff because of the breach [of an anti-competition clause].”); 
  • Oregon: N. Pac. Lumber Co. v. Moore, 551 P.2d 431, 435-46 (Or. 1976) (defendant?s sales “which would otherwise have been made by plaintiff . . . are a reasonable basis for estimating plaintiff?s damages”).
  • See Pathway Med. Technologies, Inc. v. Nelson, Case No. CV11-0857 PHX DGC (D.Ariz., Sept. 30, 2011), re AZ law applies where WA law would have provided for non-compete terms and judicial remedies not allowable under AZ law. ​​