2.2.2 Valid Business Expectancy

• Jurisdiction: Arizona

There is no requirement of an existing, subsisting contract with respect to a claim of interference with a valid business expectancy.[fn92] There is, however, a requirement that the plaintiff prove a "reasonable expectation" that the business expectancy will result in some economic advantage to him.[fn93] For example, a retail diamond merchant has a valid business expectancy in future customers,[fn94] and a produce grower has a valid business expectancy that grocery stores will continue buying his produce.[fn95] The owner of a mining claim who is attempting to sell the claim has a valid business expectancy to make the sale.[fn96] Likewise, a physician has a valid business expectancy that his patients will continue to see him, and that patient referrals from a non-profit organization will continue.[fn97] On the other hand, a year-to-year contract of employment does not create a valid expectancy of employment beyond the one year contract limit.[fn98] A real estate purchase contract which is subject to court approval does not constitute a "valid" business expectancy where other prospective purchasers are permitted to bid on the property and may outbid the plaintiff.[fn99]

What constitutes a "valid" business expectancy was stated by the Court of Appeals in Marmis v. Solot Company.[fn100] In Marmis, the purchaser of estate property who purchased the property "contingent upon court approval" was outbid during the sale confirmation hearing by another bidder. In finding that the purchaser had no "valid" business expectancy, the Court quoted with approval from 45 AM. JUR 2d, Interference, § 12:[fn101]

For Chaparral [purchasers] to establish a prima facie case, they must first establish the existence of a valid contractual relationship or business expectancy. Pre-Fit Door, Inc. v. Dor-Ways, Inc., 13 Ariz. App. 438, 477 P.2d 557 (1970).

As was said in 45 AM. JUR. 2d...