Boynton v. Boland

5 Mass. L. Rptr. 78
CourtMassachusetts Superior Court
DecidedMarch 14, 1996
DocketNo. CA 9407075
StatusPublished
Cited by1 cases

This text of 5 Mass. L. Rptr. 78 (Boynton v. Boland) 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
Boynton v. Boland, 5 Mass. L. Rptr. 78 (Mass. Ct. App. 1996).

Opinion

Cowin, J.

INTRODUCTION

Plaintiffs John W. Boynton (“Boynton”) and Albert E. Winemiller (“Winemiller”) filed this action seeking to compel defendant William T. Boland (“Boland”) to contribute towards a debt owed to Shawmut Bank,. N.A. (“Shawmut”). This case is before the Court on consideration of plaintiffs’ and defendant’s motions for summary judgment under Mass.R.Civ.P. 56.

[79]*79BACKGROUND

The following undisputed facts are drawn from the submissions of the parties.3 Boynton, Winemiller and Boland are investors in the DownTime Corporation (“DownTime”), a business incorporated in Massachusetts in March, 1987 to develop, own and operate a restaurant located at 20 Powder Mill Road, Maynard, Massachusetts. The shares initially issued by DownTime were owned 35% by Boynton, 25% by Winemiller and 20% by Boland; other minority shareholders owned the remaining 20% of the issued stock. Boland was named a Director of the corporation and temporarily served as its Clerk.

DownTime secured $600,000 in financing from First Bank in exchange for the delivery of a $600,000 demand promissory note (“the note”), executed on December 15, 1987. Shawmut Bank, N.A. (“Shawmut”) later became assignee and successor-in-interest to First Bank. The note was secured in part by the unconditional personal guaranties of Boynton, Winemiller and Boland. Additional security was provided by the guaranty of the West Bay-Wianno Realty Trust (“West-Bay”), the sole beneficiary of which was WBW Associates (“WBW’). West-Bay’s sole asset was a parcel of real estate located in Osterville, Massachusetts and West-Bay’s guaranty was secured by a mortgage on the said Osterville property. Boynton and Winemiller were trustees of West-Bay and the sole partners in WBW.

At some point before or after the execution of the note, Boland came to believe that his guaranty covered only those portions of the debt unsecured by the mortgage on the Osterville property. Additionally, Bo-land became convinced that, in the event of default, since he owned only 20% of DownTime’s stock, he would only be responsible for 20% of the value of the note. The parties dispute the cause of Boland’s beliefs about his obligations under the promissory note and the legal effect of those beliefs.

In his original deposition, Boland stated that he had no discussions with either First Bank or the other shareholders in DownTime regarding his personal guaranty at any time prior to the execution date of the note. (Deposition of William T. Boland, at 49-50.) Furthermore, Boland stated that no one had told him either orally or in writing that his guaranty was restricted to 20% of the value of the note. (Deposition of William T. Boland, at 53-55.)

After his deposition was taken, Boland submitted an errata sheet that was intended to correct alleged errors in his deposition answers but was not signed under the pains and penalties of perjury. In the errata sheet, Boland stated that Boynton told him over the telephone that his obligation was limited to 20% of the note’s value and that his obligation would come into effect only after the Osterville property had been liquidated to satisfy the debt. Boland’s assertions in the errata sheet are also supported by his statements given in a supplemental answer he submitted to the plaintiffs’ first set of interrogatories and in his affidavit, both entered under oath. Boynton and Winemiller dispute Boland’s contention that Boynton told Boland that his guaranty was limited in nature before the execution of the promissory note.

Boynton and Winemiller agree with Boland’s contention that all three parties held discussions after the execution of the note concerning the general nature of DownTime’s business. Numerous financial discussions were held in company offices. Boynton and Boland held several discussions concerning the nature of Boland’s guarantor ship. One such discussion was held over the telephone; another occurred in Boland’s kitchen during the summer of 1988. Boland states in his deposition that, during these discussions, Boynton told him that his guaranfy was limited in nature. (Deposition of William T. Boland, at 66-68.) Further discussions were held after the corporation became unstable in 1990 in various locations between Boynton, Boland and several other parties. Winemiller did not attend these latter discussions. (Deposition of William T. Boland, at 70-76.)

DownTime defaulted on its obligation to the Shawmut in 1990. Shawmut then demanded immediate full repayment of the entire $600,000 principal plus accrued interest. In April, 1991, DownTime sold all of its assets for $300,000; the debt owed to Shawmut was consequently reduced to $300,000 plus additional accrued interest. In August, 1992, Shawmut also foreclosed on the Osterville property, applying the proceeds to satisfy DownTime’s outstanding debt. The principal debt and most of the remaining interest was paid off by the $430,000 in proceeds from the foreclosure sale of the Osterville property.4 Thus, $430,000 of the debt guaranteed by the plaintiffs and the defendant has been satisfied from an asset belonging to Boynton, Winemiller and West-Bay. As a result, Boynton and Winemiller brought this action to compel Boland to contribute towards the debt to Shawmut satisfied by the assets of plaintiffs Boynton and Winemiller and by the assets of West-Bay.

DISCUSSION

Summary judgment is granted when there are no genuine issues of material fact and the summary judgment record entitles the moving party to judgment as a matter of law. Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community National Bank v. Dawes, 369 Mass. 550, 553 (1976); Mass.R.Civ.P. 56(c). The moving party bears the burden of demonstrating affirmatively both elements. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). A parly moving for summary judgment who does not have the burden of proof at trial, may demonstrate the absence of a triable issue either by submitting affirmative evidence that negates an essential element of the opponent’s case or “by demonstrating that proof [80]*80of that element is unlikely to be forthcoming at trial.” Flesner v. Technical Communications Corp., 410 Mass 805 (1991). “If the moving parly establishes the absence of a triable issue, the party opposing the motion must respond and allege specific facts which would establish the existence of a genuine issue of material fact in order to defeat the motion.” Pederson, supra at 17. The nonmoving party’s failure to prove an essential element of its case “renders all other facts immaterial” and mandates summary judgment in favor of the moving party. Kourouvacilis v. General Motors Corp., 410 Mass. 706, 711 (1991) citing Celotex v. Catrett, 477 U.S. 317, 322 (1986).

Rule 30(e) of the Massachusetts Rules of Civil Procedure permits a deponent to alter deposition testimony when corrections are made to the deposition transcript and the entire transcript is then signed:

(e) Submission to Witness; Changes; Signing.
When the testimony is fully transcribed the deposition shall be submitted to the witness for examination and shall be read to or by him, unless such examination and reading are waived by the witness and by the parties.

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Chaplin v. Quinn
17 Mass. L. Rptr. 169 (Massachusetts Superior Court, 2004)

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Bluebook (online)
5 Mass. L. Rptr. 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boynton-v-boland-masssuperct-1996.