Posts tagged "Associates"

Rauhaus Freedenfeld & Associates LLP v. Prince (Lawyers Weekly No. 12-075-17)

Rauhaus Freedenfeld & Associates LLP is an architectural firm based in Boston, Massachusetts, that specializes in designing animal hospitals. It is suing Todd Prince for not paying Plaintiff in full for designing renovations for an animal hospital owned by Prince in Deerfield, Illinois. Prince asserts various counterclaims.
Plaintiff has moved to dismiss four of the five the counterclaims; it does not seek dismissal of the counterclaim for breach of contract (Count I). The Court will allow the motion in part and deny it in part. Specifically, it will dismiss the claim for negligent misrepresentation but otherwise deny the motion to dismiss.
1. Fraud Claim. Plaintiff argues that the counterclaim for fraud (Count II) is not pleaded with the particularity required by Mass. R. Civ. P. 9(b). Under this rule, a claimant must “at a minimum” support their claim for fraud by specifically alleging “the identity of the person(s) making the” allegedly fraudulent “representation, the contents of the misrepresentation, and where and when it took place,” and must also “specify the materiality of the misrepresentation, [his] reliance thereon, and resulting harm.” Equipment & Systems for Industry, Inc. v. NorthMeadows Constr. Co., Inc., 59 Mass. App. Ct. 931, 931-932 (2003) (rescript).
Prince has stated his fraud claim with sufficient particularity. The allegations in the counterclaim plausibly suggest that Plaintiff’s agent made specific and false statements of fact to Prince at a meeting in September 2015, Plaintiff made specific and false promises in the parties’ contract that Plaintiff never intended to perform, Plaintiff made these false statements and promises to induce Prince to sign the contract, Prince did so to his detriment, and as a result Prince was damaged in that he paid $ 126,098.56 for draft drawings that he cannot use. These allegations state a claim for fraud. See Masingill v. EMC Corp., 449 Mass. 532, 540 (2007) (elements of
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fraud); McCarthy v. Brockton Natl. Bank, 314 Mass. 318, 325 (1943) (“A principal is liable for the fraud committed by his agent or servant acting within the scope of his employment.”); Cumis Ins. Society v. BJ’s Wholesale Club, Inc., 455 Mass. 458, 474 (2009) (fraud claim may be based on false promise if “the promisor had no intention to perform the promise at the time it was made”) (quoting Yerid v. Mason, 341 Mass. 527, 530 (1960)).
The Court reminds the parties, however, that an “intention not to perform a promise” cannot be inferred merely from later “nonperformance of the promise.” Galotti v. United States Trust Co., 335 Mass. 496, 501 (1957); accord McCartin v. Westlake, 36 Mass. App. Ct. 221, 230 n.11 (1994); see also Backman v. Smirnov, 751 F. Supp. 2d 304, 316 n.13 (D. Mass. 2010) (“Changing one’s mind is not proof that an earlier statement was false.”) (Stearns, J.) (applying Massachusetts law).
2. Chapter 93A Claim. Plaintiffs’ arguments for dismissing the counterclaim under G.L. c. 93A, § 11 (in Count III) are also without merit.
The plausible allegations of intentional fraud suffice to state a claim that Plaintiff engaged in deceptive conduct that violates c. 93A. See, e.g., Brewster Wallcovering Co. v. Blue Mountain Wallcoverings, Inc., 68 Mass. App. Ct. 582, 605 (2007) (“the finding of intentional misrepresentation (or common law fraud or deceit) … is sufficient foundation for a finding of a c. 93A violation in a business context”); The Community Builders, Inc. v. Indian Motorcycle Assocs., Inc., 44 Mass. App. Ct. 537, 557 (1998) (false promise with no intention to perform would violate c. 93A).
And the allegation that Plaintiff is located in Boston, and presumably did most of its work for Prince in its own offices, is sufficient at this stage to suggest that Plaintiffs’ alleged misconduct occurred “primarily and substantially” within Massachusetts, as required by G.L. c. 93A, § 11. Whether the center of gravity of the parties’ interactions and Plaintiff’s alleged fraud is in Illinois rather than Massachusetts is not an issue that can be resolved on a motion to dismiss, at least not in light of the facts alleged by Prince in his counterclaim. See Resolute Management, Inc. v. Transatlantic Reins. Co., 87 Mass. App. Ct. 296, 300-301 (2015).
3. Negligent Misrepresentation Claim. In contrast, the Court is convinced that Prince has not stated a viable claim for negligent misrepresentation in Count IV.
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Prince alleges (in paragraph 38) that Plaintiff failed to do everything it had promised in its contract. Those allegations support the counterclaim for breach of contract in Count I. But a promise is not a tortious misrepresentation unless the promising party never intended to perform, in which case the injured party has a claim for intentional misrepresentation. “[P]romises to perform an act cannot sustain a claim for negligent misrepresentation[.]” Cumis Ins. Society, 455 Mass. at 474.
4. Negligence Claim. Finally, the Court will deny Plaintiff’s request to dismiss Prince’s counterclaim for professional malpractice or negligence. Prince alleges that Plaintiff had a duty to ensure that its design met local zoning requirements and that it negligently breached that duty. Plaintiff contends that this claim should be dismissed because it had no duty to ensure compliance with zoning requirements absent a contractual agreement to do so. 1
Whether the standard of care that a reasonably competent architect should follow in this country includes a duty to ensure compliance with zoning requirements is a mixed question of law and fact that cannot be resolved on a motion to dismiss.
“Whether a duty of care exists” at all “is a question of law” and is therefore often “an appropriate subject of a motion to dismiss pursuant to rule 12(b)(6).” Leavitt v. Brockton Hosp., Inc., 454 Mass. 37, 40 (2009) (affirming dismissal of negligence claim because defendant owed no duty of care to plaintiff as a matter of law); accord O’Meara v. New England Life Flight, Inc., 65 Mass. App. Ct. 543, 544 (2006) (same).
1 Plaintiff does not argue that the counterclaim for negligence is barred by the “economic loss doctrine,” which generally provides that “purely economic losses are unrecoverable in tort and strict liability actions in the absence of personal injury or property damage.” Aldrich v. ADD Inc., 437 Mass. 213, 222 (2002), quoting FMR Corp. v. Boston Edison Co., 415 Mass. 393, 395 (1993). This rule “was developed in part to prevent the progression of tort concepts from undermining contract expectations,” on the theory that contracting parties are free to allocate the risk of economic loss as they see fit. Wyman v. Ayer Properties, LLC, 469 Mass. 64, 70 (2014); accord, e.g., Hunt Const. Group, Inc. v. Brennan Beer Gorman/Architects, P.C., 607 F.3d 10, 14 (2d Cir. 2010) (economic loss doctrine “serves to maintain the boundary between contract law, which is designed to enforce parties’ contractual expectations, and tort law, which is designed to protect citizens and their property” from physical harm) (quoting Hamill v. Pawtucket Mut. Ins. Co., 179 Vt. 250, 254, 892 A.2d 226 (2005)). Since Plaintiff has not raised the issue in support of its motion to dismiss Prince’s counterclaims, the Court will not consider it at this stage of the case.
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But whether Plaintiff’s duty of care required it to design a building that would comply with local zoning requirements is a question of fact. The standard of care owed by architects is a duty to do as good a job as one should expect from professionals in the same field in similar circumstances. “Architects, like other professionals, do not have a duty to be perfect in their work, but rather are expected to exercise ‘that skill and judgment which can be reasonably expected from similarly situated professionals.’ ” LeBlanc v. Logan Hilton Joint Venture, 463 Mass. 316, 329 (2012), quoting Klein v. Catalano, 386 Mass. 701, 718 (1982). “Establishing the applicable standard of care” owed by a member of some specialized profession “typically requires expert testimony” by someone with “sufficient knowledge of the practices” of professionals in the same field “to assert that the average qualified practitioner would, or would not, take a particular course of action in the relevant circumstances.” Palandjian v. Foster, 446 Mass. 100, 1045-106 (2006); accord LeBlanc, supra (same as to standard of care applicable to architects).
The counterclaim expressly alleges that Plaintiff “was under a duty to ensure [that] the design met the local zoning requirements,” Plaintiff breached that duty of care, and Prince was injured as a result. Nothing more is needed to state a claim for negligence. Cf. Adams v. Congress Auto Ins. Agency, Inc., 90 Mass. App. Ct. 761, 765 (2016) (elements of claim for negligence are “(1) duty; (2) breach of duty; (3) a causal connection between the breach of duty and damages; and (4) damages”).
Plaintiff’s motion to dismiss part of Defendants counterclaims is ALLOWED IN PART with respect to the counterclaim for negligent misrepresentation and DENIED IN PART with respect to Defendants’ other counterclaims.
June 14, 2017
Kenneth W. Salinger
Justice of the Superior Court

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Posted by Stephen Sandberg - June 15, 2017 at 9:12 pm

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Copley Place Associates, LLC v. Téllez-Bortoni (Lawyers Weekly No. 11-029-17)

NOTICE:  All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports.  If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557-1030;

16-P-165                                        Appeals Court


No. 16-P-165.

Suffolk.     December 9, 2016. – March 16, 2017.

Present:  Milkey, Massing, & Sacks, JJ.

Fraud.  Deceit.  Real Property, Lease.  Contract, Lease of real estate.  Practice, Civil, Summary judgment, Judgment notwithstanding verdict.

Civil action commenced in the Superior Court Department on April 24, 2012.

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Posted by Stephen Sandberg - March 16, 2017 at 3:36 pm

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Columbia Plaza Associates, et al. v. Northeastern University (Lawyers Weekly No. 12-175-16)

SUCV2013-2392-BLS 2
This case arises from a series of agreements between the defendant Northeastern University (Northeastern) and the plaintiff Columbia Plaza Associates (CPA), a minority owned general partnership. The agreements related to the development of land known as Parcel 18 adjacent to Northeastern’s main campus. Northeastern owned the parcel, and plaintiffs held certain development rights. Plaintiffs allege that that Northeastern reaped unbargained for benefits in developing the parcel without adequately compensating them, and also convinced the Boston Redevelopment Authority (BRA) to approve plans needed to allow that development by misrepresenting to the BRA that it had the plaintiffs’ participation. This matter came before the Court in October 2016 for jury-waived trial on the sole remaining count of the Verified Complaint, Count VII, alleging a violation of Chapter 93A. This Court concludes that judgment should enter for the defendant.
Parcel 18 is located in the Roxbury neighborhood of Boston next to Northeastern’s main campus. It consists of five sub parcels: 18-1A, 18-1B, 18-2, 18-3A and 18-3B. The BRA designated Parcel 18 as a Planned Development Area (PDA), specifically PDA 34. A PDA is a zoning overlay district and is one of the tools used by the BRA to impose certain controls on commercial development. Those tools include Cooperation Agreements, Sales and Construction Agreements, Master Plans and Development Plans.
In June 1989, the BRA adopted a Master Plan and a Development Plan for Parcel 18. The Master Plan provided for the development of multiple buildings on four of the sub parcels, 18-1A, 18-1B, 18-3A, and 18-3B (collectively the “Development Parcels”). The remaining sub parcel, 18-2, was to be the site of a parking garage (the “Garage Parcel”). At the time, Parcel 18 was owned by various government entities, although Northeastern would ultimately become the owner of all of Parcel 18.
CPA was formed for the purpose of participating in Boston’s “linkage plan,” a program created to promote development in areas of Boston in need of revitalization by linking together a commercial developer with a minority partner. CPA held certain development rights on Parcel 18. The commercial developer with whom CPA was paired was Metropolitan Structures, an Illinois-based general partnership.
From its inception until December 2008, CPA had two general partners: plaintiff Ruggles-Bedford Associates Limited Partnership, (Ruggles-Bedford LP) comprised primarily of
1 In ruling on a motion for summary judgment in this case, another Superior Court judge outlined in the “Background” section of his decision certain facts contained in the summary judgment record, with all inferences drawn in favor of the non-movant, CPA. Many of those same facts are set forth herein. To the extent that those facts differ from those contained in the earlier opinion, this Court’s findings are controlling.
investors from the Roxbury neighborhood; and Chinese Investment Limited Partnership (Chinese Investment LP) which consisted of investors from Boston’s Chinese community. Ruggles Bedford LP held a sixty percent interest in CPA, whereas Chinese Investment LP held a forty percent interest. Ruggles Bedford LP had 25 limited partners and one general partner, plaintiff Ruggles Bedford Associates Inc. (Ruggles Bedford, Inc.) The fourth plaintiff in this case is Columbia Ruggles Associates (CRA), a limited liability corporation created by CPA to participate in the development of the parking garage. 2 In 2008, Ruggles Bedford LP bought out Chinese Investment LP’s interest.
The identity of those who held positions in CPA or purported to act on its behalf is important to the resolution of many of the issues in this case. Chief among them was Kenneth Guscott, a businessman who was the chairman of Ruggles Bedford LP. William Chin served as CPA’s legal counsel; Robert Gunderson, a Boston attorney, also provided legal advice to CPA. CPA’s President was John Cruz, the founder of a company that develops real estate and oversees constructions projects. Beginning in 1994 or 1995, Kevin Cohee, Chief Executive Officer of One United Bank, served as CPA’s treasurer. Up until 2007, Northeastern dealt exclusively with Guscott, Chin, and Gunderson from the Ruggles Bedford wing of CPA; neither Cruz nor Cohee had any communications with Northeastern before then. Paul Chan, the treasurer of Chinese Investment LP, acted on behalf of that group and was also in regular communication with Northeastern until it was bought out by the Ruggles Bedford group.
In 1991, CPA and Metropolitan Structures formed the Ruggles Center Joint Venture for the purpose of building on the Development Parcels. Guscott, Chin and Chan represented CPA in connection with that joint venture. An office building was constructed on sub parcel 18-1B
2 Because the interests of these four plaintiffs are essentially identical, the Court will refer to them collectively simply as CPA.
which briefly became the home for the Registry of Motor Vehicles. Sometime in the mid-1990s, the building was condemned, and the bank that had financed the construction foreclosed on the property, acquiring all four Development Parcels. In November 1997, Northeastern acquired the Development Parcels from the entity that had held title to them following the foreclosure.
Around that same time, Northeastern entered into discussions with CPA and the BRA about developing Parcel 18. Guscott and Chan represented CPA in these discussions. On November 12, 1997, both Guscott and Chan, on behalf of CPA, signed a Letter of Intent with Northeastern setting forth a framework for an agreement among the parties regarding that development. In late June 1999, Northeastern, CPA and the BRA (whose approval was needed for any development) formally entered into the arrangement contemplated by that Letter of Intent. The arrangement was memorialized in several contemporaneous agreements.
Three of those agreements related to acquisition and development of the Garage Parcel and are not directly relevant to the issues presented at trial. A fourth agreement dated June 29, 1999 (the Master Agreement) set forth the obligations of the parties with respect to both the Garage Parcel and future development on the Development Parcels. See Trial Exhibit 1. A fifth agreement (the Cooperation Agreement) documented the parties’ plan to develop the Garage Parcel and further stated that “Northeastern, individually and/or in partnership with CPA” planned to develop the remaining parcels. See Trial Exhibit 15. CPA was represented in the negotiation of these agreements by two attorneys, Chin and Gunderson. The agreements were all signed by Guscott and Chan on behalf of CPA and were approved by CPA’s board of directors.
Together, these agreements provided the following. Northeastern and CPA would form a limited liability company, Renaissance Park Garage LLC (the Garage LLC), with Northeastern
as its manager. Northeastern would make an initial contribution of $ 380,000 to the Garage LLC, which funds would be used to acquire Parcel 18-2 (the Garage Parcel) from the BRA after the BRA acquired the parcel from the MBTA. Northeastern would pay CPA $ 320,000 in cash in return for what the Master Agreement described as CPA’s “Personal Property.” That was defined to include “Garage Plans” and certain “Intangible Property” consisting of “all contract rights, licenses, permits and warranties” related to Parcel 18-2. Northeastern would make an additional payment of $ 100,000 as CPA’s capital contribution toward any joint venture formed between Northeastern and CPA to develop a building on Parcel 18-3A. Section 6.3 of the Master Agreement describes that contemplated joint venture and lies at the heart of the dispute now before the Court.
Significantly, neither Section 6.3 nor any other provision in the Master Agreement actually created a joint venture, nor did the Master Agreement require that either party actually enter into one. It did require that the parties work “diligently and in good faith” to negotiate terms “mutually satisfactory to both parties.” See Section 6.3.1 of Master Agreement. The Master Agreement also set forth a list of issues that any joint venture agreement should include. See Section 6.3.3 of Master Agreement. For example, although it was contemplated that Parcel 18-3A would be developed as a hotel or office building, the joint venture could decide to develop it for the “institutional purposes” of Northeastern, provided that Northeastern pay the joint venture the fair rental value of the building. Negotiations regarding the terms of any joint venture agreement was to commence within six months of the Closing Date on the Master Agreement, although that date could be extended by either party. Finally, the Master Agreement provided that Section 6.3 was to survive the Closing “until full execution of the Joint Venture
Agreement.” Any notices to CPA in relation to the Master Agreement were to be sent to Chin, CPA’s legal counsel.
As it turned out, no joint venture agreement was ever entered into among the parties. Indeed, neither Northeastern nor CPA submitted a draft proposal for such an arrangement. Over the next six years, however, Northeastern did explore the possibility of developing a hotel on Parcel 18-3A, even hiring an outside development firm, Newcastle, to look into its economic feasibility. Northeastern directed Newcastle to work with CPA as a partner in that development. Both Newcastle and Mel Shuman, outside counsel for Northeastern, discussed these plans with Guscott and Chin of CPA. Gunderson, CPA’s outside legal counsel, was also included in these discussions.
Around this same time period (1999-2005), there was growing concern in the surrounding community regarding Northeastern’s use of private housing to meet its institutional needs. In response to those concerns, discussions among the parties shifted away from using Parcel 18-3A as the site for a hotel and using it instead for a dormitory, with the hotel to be built on Parcel 18-1A instead. Northeastern consulted with various community groups, state legislators and city councilors as well as the BRA, whose approval was required for any change in plans. Northeastern also spearheaded the formation of a Community Task Force to broaden its outreach. Ultimately, the consensus in the community was that more dormitories were needed and that Parcel 18-1A was a better site for a hotel than Parcel 18-3A because it had greater visibility, bordering as it did on Melnea Cass Boulevard.
Guscott and Chin were not only aware of these public meetings but had numerous discussions with Vincent Lembo, Northeastern’s legal counsel, about the possibility of moving the hotel to Parcel 18-1A; there is no evidence that either of them expressed any reservations
about it. As late as August 2006, however, Northeastern was still exploring the possibility of building a hotel on Parcel 18-3A as originally contemplated. Newcastle drew up a letter outlining the basic terms of such an arrangement, which would have included CPA, and Newcastle representatives came to Boston to meet with both Gunderson and Chin, but no agreement could be reached as to the financial terms of CPA’s participation. At no time did Northeastern suggest that it would not participate with CPA in the development of a hotel; indeed, it was quite the opposite.
Ultimately Northeastern, in consultation with both Gunderson and Chin, decided to proceed with the proposal to use Parcel 18-3A for a dormitory and to place any hotel that would be constructed on Parcel 18-1A. To do that, however, it had to seek an amendment to the Master Plan and the Development Plan and to the related Cooperation Agreement for PDA 34. It also had to seek an amendment to its Institutional Plan or IMP. Both Guscott and Chin of CPA were fully informed as to the amendments that Northeastern was proposing.
These amendments required the approval of the BRA and the Zoning Commission. Before that could be obtained, Northeastern had to participate in an extensive public hearing process. Between December 2005 and December 2006, more than 40 public meetings were held, some of which were the subject of newspaper articles. In the summer of 2006, the BRA placed a public notice of Northeastern’s proposal to amend its IMP in local newspapers and invited public comment. On January 11, 2007, the BRA formally approved the Amended and Restated Development Plan so as to permit construction of a hotel on Parcel 18-1A. That Plan made it clear that Northeastern would construct that a building on that parcel “in partnership” with CPA, expressly identified in that document as the “Developer” together with Northeastern. At the same time, the BRA approved Northeastern’s application to add Parcels 18-3A and 18-3B to its
Institutional Plan. On October 2, 2007, the BRA approved an amendment to the Cooperation Agreement for PDA 34. That document confirmed that, as a result of the removal of Parcels 18-3A and 18-3B from the PDA, “CPA is neither an owner [n]nor a developer nor has a beneficial interest as owner or developer of any portion of the removed parcels.”
Northeastern continued to have sporadic communications with CPA (specifically Gunderson) about CPA’s participation in a hotel development into the fall of 2007. At some point thereafter, however, Lembo of Northeastern was informed that Cruz was taking over a representative role. Up until then, no one at Northeastern had had any dealings with either Cruz or Cohee.
On March 26, 2008, Lembo sent a letter to Cruz stating that he had recently learned that Cruz was taking a leadership position in CPA and that he looked forward to working with him “as we continue the long term partnership between CPA and Northeastern University.” He also noted in the letter, however, that several months had passed without any contact with CPA and that, if the project to develop the hotel was to go forward, it was important they get together “at the earliest possible moment.” Cruz responded in a letter dated April 2, 1008 in which he remarked that “there have been so many meetings and interactions concerning these two land holdings that I have difficulty keeping them orderly in my mind.” He stated that he understood that CPA had certain agreements with Northeastern concerning Parcel 18 and that members of CPA intended to review the “appropriate documents” in an expeditious fashion so that they could have an “informed dialogue.” Cruz signed the letter as president of Ruggles Bedford Inc. and copied Guscott and Cohee.
Before those letters were exchanged, Cruz was aware that Northeastern had already begun the construction of a dormitory on Parcel 18-3A. He knew this because his business office
was near the site and sometime in 2007, he saw that excavation had begun there. When Cruz noticed this, he realized that Northeastern was constructing a dormitory there and that CPA was not part of that project. Thus, by the time he wrote to Lembo, Cruz by his own admission knew that CPA, to the extent it had any development rights to Parcel 18-3A, was being harmed.
In May 2008, Lembo sent another letter to Cruz, noting that, although Northeastern had worked closely with Chin and Guscott concerning the hotel development, Northeastern had heard nothing from CPA since Cruz’s last communication with Lembo in April. The letter explained that Northeastern had paid for three studies regarding the hotel project and had selected Newcastle as the developer. Newcastle had in turn engaged a design firm and was working to put together financing. Lembo stated that Northeastern’s inability to have any substantive discussion with CPA, however, was placing the project in jeopardy. He received no reply. Lembo sent a third letter on March 18, 2009 describing a time limited opportunity regarding funding for the proposed hotel project but this too went nowhere.
On April 13, 2009, the law firm of Goodwin Procter, on behalf of CPA, sent a Chapter 93A demand letter to Northeastern. The letter complained that Northeastern’s development of the dormitory on Parcel 18-3A without the involvement of CPA violated the parties’ 1999 agreements, specifically Section 6.3.1 of the Master Agreement. The letter also accused Northeastern of falsely representing to the BRA that it was acting in “partnership” with the CPA in order to obtain the necessary BRA approvals for the dormitory project. CPA paid Goodwin Procter for these legal services.
The instant case was filed on July 1, 2013.
Northeastern makes several arguments as to why plaintiffs’ claim fails – either as a matter of law or as a matter of fact. This Court finds that at least two of those arguments support the conclusion that judgment should enter in favor of Northeastern. Although either is dispositive of the case, this Court will discuss both.
A. Plaintiffs have not proved that Northeastern engaged in any unfair or deceptive practice
Count VII alleges a violation of G.L.c. 93A §11, which requires proof, by a preponderance of the evidence, that the defendant, while engaged in the conduct of trade or commerce, committed an unfair or deceptive act or practice. In determining whether an act or practice violates Chapter 93A, courts consider: “(1) whether the practice…is within at least the penumbra of some common-law, statutory or other established concept of unfairness; (2) whether it is immoral, unethical, oppressive or unscrupulous [and] (3) whether it causes substantial injury to consumers (or competitors or other businessmen).” PMP Assoc.’s Inc. v. Globe Newspaper Co., 366 Mass. 593, 596 (1975) (quoting a definition adopted by the Federal Trade Commission). “The objectionable conduct must attain a level of rascality that would raise an eyebrow of someone inured to the rough and tumble of the world of commerce.” Levings v. Forbes & Wallace, Inc. 8 Mass.App.Ct. 498 504 (1979). As to the conduct at issue here, CPA contends that Section 6.3.1 of the Master Agreement compelled Northeastern to act together with CPA in any development of Parcel 18-3A and that Northeastern’s decision to build the dormitory on its own wrongfully deprived CPA of certain valuable development rights. Northeastern accomplished this (it is argued) by not only keeping CPA in the dark as to its intentions but also by falsely representing to the BRA that it remained in a partnership with
the CPA so as to obtain necessary BRA approvals. CPA’s position, however, is simply not supported by the facts as found by this Court.
First, Northeastern kept CPA fully informed about its plans following the execution of the 1999 Agreements right up until the time that it began building the dormitory on Parcel 18-3A. Northeastern representatives were in regular contact with Chan (representing the Chinese investors), Chin and Guscott, all of whom played central roles in representing CPA’s interests in connection with Parcel 18. Plaintiffs’ arguments notwithstanding, all of these individuals had actual authority to represent CPA. Guscott as chairman of Ruggles Bedford LP and Chan as treasurer of Chinese Investment LP (the two general partners in CPA) signed the 1997 Letter of Intent as well as the 1999 agreements on behalf of CPA. The Master Agreement designated Chin, CPA’s legal counsel, as the person to whom any notices had be sent in order to keep CPA informed. In addition to Guscott and Chan, Northeastern also consulted regularly with Gunderson, who acted as CPA’s outside legal counsel.3 When Limbo learned that Cruz was taking on some leadership role at CPA in 2007, he immediately wrote Cruz requesting that they meet to discuss the hotel project, which by that time, with CPA’s full knowledge, had been moved to Parcel 18-1A.
That Northeastern kept CPA fully apprised about Parcel 18 also highlights a second flaw in plaintiffs’ position. CPA claims that it was wrongfully deprived of certain bargained for benefits in connection with Parcel 18-3A. Even assuming that it had such rights, however, this Court concludes that CPA’s complete failure to do anything to exercise those rights or to respond to Northeastern’s invitation to work with it in connection with the construction of a
3 Significantly, none of these individuals were called by the plaintiffs to testify, so that the testimony offered by Northeastern’s witnesses as to their communications with Guscott, Chan, Chin and Gunderson is uncontradicted.
hotel meant that they lost whatever rights they had had. As McCann from the BRA described these development rights, they were not much better than a fishing license: they essentially gave CPA the opportunity to become a developer on a project provided that it met the BRA’s rigorous prerequisites, which included a demonstration that it had a specific and economically feasible development plan. There was no evidence that CPA presented such a plan, much less that it was ready and willing to enter into one with Northeastern. Certainly, Northeastern did not in any way attempt to hinder CPA in exercising those development rights: indeed, it specifically directed Newcastle to work with CPA when it was still exploring the possibility of locating the hotel on Parcel 18-3A. CPA not only failed to take Northeastern up on its invitation but did not offer any proposal of its own to participate in the development. And when Northeastern sought amendments to various plans which had the effect of extinguishing whatever inchoate rights CPA had in connection with Parcel 18-3A, CPA representatives (through Guscott and Chin) were not only aware of those proposed amendments but also, with that knowledge, voiced no objection to anyone, seemingly content with the prospect of still becoming a development partner for a hotel on Parcel 18-1A.
As to the claim that Northeastern misrepresented that it was in partnership with CPA, this too is not supported by the facts. In connection with proposed amendments to the Master Plan that were necessary to allow for construction of a dormitory on Parcel 18-3A, Northeastern stated that both CPA and Northeastern would be the “Developer” for any hotel located on Parcel 18-1A. This was a true statement. Northeastern agrees, even today, that CPA has certain rights in connection with development of that parcel and does not seek any order that would extinguish them.
As to plaintiffs’ assertion that Northeastern’s conduct was in violation of the 1999 Agreements that is not supported by the language of the agreements themselves. The Master Agreement did not compel either party to actually enter into a joint venture agreement if Parcel 18-3A were to be developed. Rather, it required Northeastern to negotiate in good faith in an effort to reach an agreement, placing a time period upon the length of that negotiation, subject to mutually agreed upon extensions. If a joint venture was formed, then Northeastern would make a $ 100,000 payment as a credit toward CPA’s capital contribution. Similarly, if the joint venture that was formed decided to use Parcel 18-3A for a dormitory, then Northeastern was required to pay the joint venture fair rental value of the building. But no joint venture was ever entered into. Therefore, Northeastern had no contractual obligation to pay CPA anything. 4
B. Plaintiffs ‘Claim is Time-Barred
An action arising under Chapter 93A must be filed within four years after the cause of action
accrues. G.L.c. 260 §5A. A cause of action accrues for purposes of the statute of limitations when “the plaintiff knows or reasonably should have known that it sustained appreciable harm” as a result of the defendant’s conduct. Int’l Mobiles Corp. v. Corroon & Black/Fairfield & Ellis, Inc. 29 Mass.App.Ct 215, 217-218 (1990). “Reasonable notice that …a particular act of another person may have been a cause of harm to a plaintiff creates a duty of inquiry and starts the running of the statute of limitations.” Bowen v. Eli Lilly & Co., 408 Mass. 204, 210 (1990). It is not necessary that the plaintiff know the full extent of harm or loss or know precisely in what manner and what harmful after-effects flow from the defendant’s wrongful conduct. Frankston
4 Indeed, another Superior Court judge (Connors, J.) using similar reasoning, already dismissed the breach of contract claims from this case that were based on these allegations. See Memorandum of Decision on Defendants’ Motion to Dismiss, dated January 28, 2014. Their legal viability is no better simply because they have been recast as a 93A violation.
v. Denniston, 74 Mass. App. Ct. 366, 374, rev. den., 455 Mass. 1102 (2009). Appreciable harm encompasses the incurring of legal expenses. Id.
In order for the instant case to fall within the statute of limitations, it must not have “accrued” before July 1, 2009, four years before this case was filed. As this Court’s fact findings make clear, however, CPA knew well before that date about the claim now before the Court. As a result of Northeastern’s discussions with Guscott and Chan in 2005 and 2006, CPA was well aware of Northeastern’s plan to develop a dormitory on Parcel 18-3A without CPA’s involvement. Sometime in the fall of 2007, Cruz saw that excavation for the dormitory was occurring on that site and knew that CPA was not part of that; to the extent that CPA clams it was deprived of valuable development rights, Cruz knew as of that date that CPA had suffered some appreciable harm. It is not necessary that he know the full extent of that harm or that the harm be fully realized in order for the limitations period to begin running.
With regard to proceedings before the BRA, the evidence is uncontradicted that Guscott and Chin were aware of Northeastern’s filings. Indeed, the BRA’s approval of Northeastern’s proposal was preceded by extensive public hearings and a broad public outreach to leaders in the Roxbury community. It strains credulity to believe that CPA members had no knowledge that the topic of discussion at those hearings and meetings was Northeastern’s plan to build a dormitory on Parcel 18-3A, and in connection therewith, to filed amendments to PDA 34 which would extinguish CPA’s rights to that parcel. At the very least, CPA had reason to know. Certainly, plaintiffs had full knowledge of all the details of their claim when Goodwin Procter sent the Chapter 93A demand letter to Northeastern. The date of that letter was April 3, 2009, more than four years before this action was filed.
For all the foregoing reasons, it is hereby ORDERED that judgment enter in favor of the defendant Northeastern University and that Count VII, the sole remaining count in this case, be DISMISSED with prejudice.
Janet L. Sanders
Justice of the Superior Court
Dated: December 15, 2016

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Posted by Stephen Sandberg - December 31, 2016 at 5:14 am

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Russell Block Associates v. Board of Assessors of Worcester (Lawyers Weekly No. 11-145-15)

NOTICE:  All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports.  If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557-1030;

14-P-283                                        Appeals Court


No. 14-P-283.

Suffolk.     November 10, 2014. – September 16, 2015.

Present:  Rubin, Brown, & Maldonado, JJ.

Taxation, Real estate tax:  abatement, classification of property.  Real Property, Tax.

Appeal from a decision of the Appellate Tax Board.

John F. O’Day, Jr., Assistant City Solicitor, for board of assessors of Worcester.

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Posted by Stephen Sandberg - September 16, 2015 at 8:20 pm

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Navy Yard Four Associates, LLC v. Department of Environmental Protection, et al. (Lawyers Weekly No. 11-130-15)

NOTICE:  All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports.  If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557-1030;

14-P-607                                        Appeals Court


No. 14-P-607.

Suffolk.     April 2, 2015. – September 4, 2015.

Present:  Kafker, C.J., Kantrowitz, & Hanlon, JJ.


HarborsReal Property, Harbors, Restrictions, Littoral property, License.  Trust, Public trust.  LicenseDepartment of Environmental ProtectionAdministrative Law, Agency’s authority, Regulations, Agency’s interpretation of statute, Agency’s interpretation of regulation.  RegulationStatute, Construction.  Words, “Tidelands.”

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Posted by Stephen Sandberg - September 4, 2015 at 2:56 pm

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Wessell v. Mink Brook Associates, Inc., et al. (Lawyers Weekly No. 11-089-15)

NOTICE:  All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports.  If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557-1030;

14-P-1120                                       Appeals Court


No. 14-P-1120.

Worcester.     April 7, 2015. – August 5, 2015.

Present:  Kantrowitz, Kafker, & Hanlon, JJ.

Massachusetts Wage Act.  Attorney at Law, Disqualification, Attorney-client relationship, Conflict of interest.  Employment, Retaliation, Termination.  Damages, Wrongful discharge of employee, Back pay.  Practice, Civil, Instructions to jury, Damages.

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Posted by Stephen Sandberg - August 5, 2015 at 3:48 pm

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Beacon South Station Associates, LSE v. Board of Assessors of Boston (Lawyers Weekly No. 11-048-14)

Posted by Stephen Sandberg - May 14, 2014 at 8:09 pm

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Loring Towers Associates v. Furtick v. Boston Housing Authority (Lawyers Weekly No. 11-033-14)

NOTICE:  All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports.  If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA 02108-1750;  (617) 557-1030;

13‑P‑799                                        Appeals Court


No. 13‑P‑799.

Essex.     December 3, 2013.  ‑  March 27, 2014.

Present:  Grainger, Brown, & Carhart, JJ.

Summary ProcessPractice, Civil, Summary process, Complaint, Parties.  Boston Housing AuthorityDue Process of Law, Housing.

Summary process.  Complaint filed in the Salem Division of the District Court Department on April 23, 2012.

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Posted by Stephen Sandberg - March 27, 2014 at 4:33 pm

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State Room, Inc. v. MA-60 State Associates, L.L.C., et al. (Lawyers Weekly No. 11-111-13)

NOTICE:  All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports.  If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA 02108-1750;  (617) 557-1030;

12‑P‑1915                                       Appeals Court

STATE ROOM, INC.  vs.  MA-60 STATE ASSOCIATES, L.L.C., & others.[1]

No. 12‑P‑1915.

Suffolk.     May 10, 2013.  ‑  September 13, 2013.

Present:  Grasso, Sikora, & Maldonado, JJ.

AppraisalValueLandlord and Tenant, Rent.

Civil action commenced in the Superior Court Department on October 6, 2011.

A motion to dismiss was heard by Peter M. Lauriat, J.

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Posted by Stephen Sandberg - September 14, 2013 at 3:41 am

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Preventive Medicine Associates, Inc., et al. v. Commonwealth (Lawyers Weekly No. 10-130-13)

NOTICE:  All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports.  If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA 02108-1750;  (617) 557-1030;



Suffolk.     March 7, 2013.  ‑  July 15, 2013.

Present:  Ireland, C.J., Spina, Cordy, Botsford, Gants, Duffly, & Lenk, JJ.

Electronic MailPrivileged CommunicationSearch and Seizure, Warrant.  Practice, Criminal, Warrant, Assistance of counsel, Subpoena.  Constitutional Law, Search and seizure, Assistance of counsel.  Rules of Criminal Procedure.

Civil action commenced in the Supreme Judicial Court for the county of Suffolk on June 13, 2012.

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Posted by Stephen Sandberg - July 15, 2013 at 2:40 pm

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