Abbott v. Arthur Mackenzie Productions, Inc.

21 Mass. L. Rptr. 2
CourtMassachusetts Superior Court
DecidedApril 3, 2006
DocketNo. 011287BLS
StatusPublished

This text of 21 Mass. L. Rptr. 2 (Abbott v. Arthur Mackenzie Productions, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abbott v. Arthur Mackenzie Productions, Inc., 21 Mass. L. Rptr. 2 (Mass. Ct. App. 2006).

Opinion

van Gestel, Allan, J.

This matter returns to the Court2 on several somewhat interconnected motions that relate to what remains of the case. Those motions, in their order of docketing are: Defendant Maralyn P. Mackenzie’s Motion for Summary Judgment, Paper #80; Plaintiffs Cross Motion for Summary Judgment, Paper #81; Defendant Maralyn Mackenzie’s Motion to Dissolve Real Estate Attachment, Paper #86; Plaintiffs Ex Parte Motion in Aid of Execution Pursuant to Rule 69, Paper #88; Emergency Motion for Protective Order [by Maralyn Mackenzie], Paper #90; Motion to Strike Paragraph 5 of Maralyn Mackenzie’s Second Affidavit, Paper #93; and Motion for Leave of Court to Withdraw as Counsel, Paper #94.

BACKGROUND

This is a case in which the plaintiff, Gregory Abbot (“Abbott”), claimed that the defendant Arthur G. Mackenzie, Jr. (“Mackenzie”) made numerous misrepresentations to induce Abbott to enter into a business partnership or venture with one of Mackenzie’s com-[3]*3parties, the defendant Arthur MacKenzie Productions, Inc. (“AMP”). The partnership or venture hereafter sometimes will be called the AMP/Abbott Partnership. Abbott also claimed that once he agreed to enter into the partnership and contributed substantial sums of money thereto, MacKenzie, both individually and as a principal of the two corporate defendants — AMP and Arrowhead Entertainment, Inc. (“Arrowhead”) — misappropriated corporate funds, breached fiduciary duties owed to Abbott, and otherwise defrauded him.

After full discovery and a jury-waived trial on the merits between Abbott, on the one hand, and MacKenzie, AMP and Arrowhead, on the other, this Court ultimately entered the following judgment, after making findings of fact and rulings of law.

ON COUNTS I, II, VI, VII, X AND XII OF THE COMPLAINT, THE PLAINTIFF, Gregory Abbott, IS ENTITLED TO JUDGMENT AGAINST THE DEFENDANTS Arthur MacKenzie Productions, Inc., Arrowhead Entertainment, Inc., and Arthur MacKenzie, Jr., in the amount of $819,899.63, plus interest in the amount of $401,750.81, plus costs of $16,848.60, plus statutory interest from March 21, 2005.
ALL COUNTS OF DEFENDANTS’ COUNTERCLAIMS ARE DISMISSED WITH PREJUDICE.
THERE IS NO JUST REASON FOR DELAY AND, THEREFORE, THIS JUDGMENT SHALL ENTER PURSUANT TO MASS.R.CIV.P. RULE 54(b).

Over a year earlier, on April 6, 2004, the claims against Maralyn P. MacKenzie (“Maralyn”), MacKenzie’s wife, were severed and stayed. See Paper #31. Those claims are now all the remains to be resolved in this case. They are set forth in Counts XIV and XV. Neither count charges Maralyn with any wrong-doing. Indeed, at oral argument on the current motions, Abbott’s counsel conceded as much.

The two counts against Maralyn each resulted from her being in the wrong place at the wrong time. Count XIV names Maralyn solely as a reach and apply defendant. It charges MacKenzie with “convert[ing] funds belonging to [Abbott] and us[ing] those funds to make improvements to and maintain the property which is [AMP’s and Arrowhead’s] principal place of business, and . . . MacKenzie’s residential home without [Abbott’s] knowledge or consent.” Abbot, thus seeks to reach and apply MacKenzie’s “interest in the real estate [the Property] to the extent of the value of the misappropriated and converted funds.” Title to the Property, however, has been solely in Maralyn’s name since some time in 1973, long before the events of the underlying lawsuit and long before Abbott ever came on the scene. Nothing has been presented to demonstrate that the Properly was fraudulently conveyed to Maralyn.

Count XV again repeats Abbott’s claims against MacKenzie of conversion to improve and maintain the Property and asserts that “while the Property is not deeded in the name of [MacKenzie], a constructive trust exists so as to favor . . . [MacKenzie’s] interest in the Property over the grantee to whom the properly is deeded.” That grantee, of course, is Maralyn.

On April 6, 2004, on an unopposed motion by Abbott, this Court granted areal estate attachment on the Property in the amount of $96,538.19. This amount was said in supporting papers to be made up of $73,136.00 in alleged mortgage payments by MacKenzie and $23,402.19 in alleged improvements to the Property with improperly converted funds of the defendant corporations, AMP and Arrowhead.

The parties are in agreement as to the following undisputed facts.

MacKenzie has lived with his wife, Maralyn, at property located at 22 Arrowhead Road, Weston, Massachusetts, since 1959. Maralyn is 70 years old and has been married to MacKenzie since 1959.

The defendant corporations, AMP and Arrowhead, also were operated out of the Property, which Property has been in the sole name of Maralyn since 1973. At oral argument, the Court was told that the corporations are not functioning at this time.

There was no evidence at the trial against MacKenzie, AMP and Arrowhead, that Maralyn was a party to or participated in the alleged transgressions by her husband or the corporations. Maralyn denies knowing anything significant about her husband’s business dealings and claims, that she was “a traditional housewife.” “She raised the children and kept house while [MacKenzie] worked.”

MacKenzie is a concert pianist and, prior to the trial at least, was an entertainment industry consultant, with credits as a theatrical producer, concert producer, and television producer. He had an extensive network of contacts in the entertainment industry.

Among its findings, this Court ruled that Abbott was not entitled to recover the first $150,000 he gave to MacKenzie in April of 1998 because it was an investment. Further, the Court found that MacKenzie was entitled to a salary from AMP of $80,000 for 1999 and 2000, the first two years of the partnership.

The Court also found and ruled, “There is no conversion here” and “no basis for establishing a constructive trust.”

Also, the Court found and ruled that there was a “confused intermingling by MacKenzie” that “enables a piercing of the corporate veil[s of AMP and Arrowhead] and holding him personally responsible as a partner or venturer with Abbott.”

This is the setting in which the present array of motions were heard and will be considered. Additional facts relating to particular motions may be included in the discussion thereon.

[4]*4 DISCUSSION

The Court will address the motions separately, except for the cross motions on summary judgment which will be treated together.

Cross Motions for Summary Judgment

“Summary judgment is appropriate when, viewing the evidence in the light most favorable to the nonmoving party, all material facts have been established and the moving party is entitled to judgment as a matter of law.” M.P.M. Builders, LLC v. Dwyer, 442 Mass. 87, 89 (2004); Kesler v. Pritchard, 362 Mass. 132, 134 (1972). Mass.R.Civ.P. Rule 56(c).

The moving party bears the burden of affirmatively demonstrating that there is no triable issue of fact. Pederson v. Time, Inc., 404 Mass. 14, 17 (1989). When, such as here, there are cross-motions, the Court is compelled to look at each motion with the burden being imposed on the party who is the movant.

Two different, but sometimes intertwined, legal or equitable concepts will dictate the result here.

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Related

Pederson v. Time, Inc.
532 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1989)
Foster v. Evans
429 N.E.2d 995 (Massachusetts Supreme Judicial Court, 1981)
Kesler v. Pritchard
284 N.E.2d 602 (Massachusetts Supreme Judicial Court, 1972)
Simonds v. Simonds
380 N.E.2d 189 (New York Court of Appeals, 1978)
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Fortin v. Roman Catholic Bishop
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Demoulas v. Demoulas
428 Mass. 555 (Massachusetts Supreme Judicial Court, 1998)
M.P.M. Builders, LLC v. Dwyer
809 N.E.2d 1053 (Massachusetts Supreme Judicial Court, 2004)
Jensen v. Daniels
57 Mass. App. Ct. 811 (Massachusetts Appeals Court, 2003)
Bleicken v. Stark
813 N.E.2d 572 (Massachusetts Appeals Court, 2004)
Stevens v. Nagel
831 N.E.2d 935 (Massachusetts Appeals Court, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
21 Mass. L. Rptr. 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abbott-v-arthur-mackenzie-productions-inc-masssuperct-2006.