Zuckert v. Fraen Mechatronics LLC, et al. (Lawyers Weekly No. 12-141-16)
1 COMMONWEALTH OF MASSACHUSETTS SUFFOLK, ss. SUPERIOR COURT SUCV2015-02833-BLS2 JOSHUA S. ZUCKERT, Plaintiff vs. FRAEN MECHATRONICS LLC, FRAEN CORPORATION, FRAEN MACHINING CORPORATION, FRAEN MACHINING SRL HOLDING CORPORATION, FRAEN REAL ESTATE CORPORATION, FRAEN SRL HOLDING CORPORATION, & SK PATENTS LLC, Defendants MEMORANDUM OF DECISION AND ORDER ON DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT Plaintiff Joshua S. Zuckert filed this action against defendant Fraen Corporation (Fraen) and related entities alleging breach of two agreements that concern a patent for a “rotary single-phase electromagnetic actuator,” a torque motor used in automobiles. Zuckert’s Complaint asserts the following claims: violation of G.L. c. 93A (Count I), fraud and deceit (Count II), breach of contract (Count III), breach of the implied covenant of good faith and fair dealing (Count IV), fraudulent misrepresentation (Count V), fraudulent concealment (Count VI), and misrepresentation (Count VII). On October 28, 2015, this Court denied defendants’ Motion to Dismiss for failure to state a claim upon which relief may be granted, although this judge did view the Complaint as “decidedly thin.” With discovery closed, the case is now before this Court on the defendants’ Motion for Summary Judgment. After careful review of the summary judgment record, this Court concludes that the plaintiff has no reasonable expectation of proving his claims, so that summary judgment in defendants’ favor is appropriate. 2 BACKGROUND The summary judgment record contains the following undisputed facts. Fraen, a Massachusetts corporation, manufactures electric motor and optical systems for the automotive industry. Zuckert, a mechanical engineer, was the holder of a patent for a torque motor used in automobiles. Zuckert approached Fraen about marketing such devices. In 2012, the parties entered into two agreements: a patent purchase agreement (PPA) and a sales representative agreement (SRA). The defendants’ performance under these agreements is what is at issue in this lawsuit. Under the PPA, Zuckert assigned all rights, title, and ownership interest to the patent rights for the torque motor to Fraen’s subsidiary, defendant SK Patents. In return, SK Patents and Fraen agreed to pay Zuckert a royalty of 0.25 percent on net sales of any product covered by the patent and a royalty of 5 percent of any licensing income, up to a total payment of $ 500,000. The patent rights transfer was permanent and irrevocable so long as Zuckert received at least $ 162,000 in compensation under the SRA by December 15, 2013. Paragraph 7 of the PPA expressly contemplated assignments, with no limitation on SK Patent’s ability to make such an assignment. The PPA also contains an integration clause. ¶10 of PPA. Under the SRA, Zuckert agreed to act as Fraen’s sales representative and to market the torque motor in a “worldwide territory.” Zuckert was required, among other things, to […]