BPR Group Ltd. Partnership v. Bendetson

18 Mass. L. Rptr. 593
CourtMassachusetts Superior Court
DecidedJanuary 3, 2005
DocketNo. 040168BLS
StatusPublished
Cited by3 cases

This text of 18 Mass. L. Rptr. 593 (BPR Group Ltd. Partnership v. Bendetson) 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
BPR Group Ltd. Partnership v. Bendetson, 18 Mass. L. Rptr. 593 (Mass. Ct. App. 2005).

Opinion

van Gestel, J.

This matter is before the Court on cross motions for summary judgment on all counts to the complaint.

BACKGROUND

Involved are three essentially identical joint venture agreements executed in 1980 and 1981. The agreements were formed for the principal purpose of acquiring, operating and developing property located at 135-145 and 175 Ward Street, and 315 Charger Street in Revere, Massachusetts.

Although different at the beginning, for all purposes relevant to this case there are four joint venturers in each venture, as follows: the plaintiff, BPR Group Limited Partnership (“BPR”); and the defendants Richard K. Bendetson (“Bendetson”), Carson Revere, LLC (“Carson”) and CDE Revere, LLC (“CDE”). Each of the four current joint venturers has a 25% ownership interest in each of the three joint ventures.

For purposes of this decision, the significant language in each of the three joint venture agreements is identical. That language appears in Section 4 and Section 11, as follows:

4. Term. This Agreement shall commence as of the date hereof and shall continue and not be dissolved or terminated except as hereafter provided.

[594]*59411. Termination.

A. This Joint Venture shall terminate upon the first to occur of the following events:

1. Upon notice of any non-defaulting Member, if any other Member shall fail to perform his or its obligations hereunder and such default shall continue uncured for a period of at least sixty (60) days after written notice thereof from the party claiming such default; the party desiring to terminate under this provision shall, after the expiration of the sixty (60) period, give one (1) month’s written notice of his intention to terminate.
2. Upon the conveyance of all of the real estate comprising the Property.
3. At the option of any Member not in default within a reasonable time after notice that any other Member shall have had filed by or against him pursuant to a statute of the United States or of any statute, a petition in bankruptcy or insolvency or for the appointment of a receiver or trustee of all or a portion of such party’s assets and such other party fails within sixty (60) days to secure a discharge thereof, or if such other party shall make an assignment for the benefit of creditors or petition for or voluntarily enter into an arrangement for the benefit of creditors.
4. By mutual agreement of all of the Members.

There has been a falling out between BPR and Bendetson. The falling out, however, is not said to relate to any alleged failure by Bendetson to perform his obligations under any of the three joint venture agreements. Nevertheless, on December 22, 2003, BPR served written notice on the remaining three Members of each joint venture “that, pursuant to Massachusetts General Laws Chapter 108A, sec. 31(l)(b)” the particular joint venture “is hereby dissolved.”

Bendetson, Carson and CDE, pointing to Section 11 of the respective joint venture agreements and the fact that none of the four events of termination have occurred, decline to proceed with the asserted dissolution and consequent winding up of the joint ventures.

BPR’s complaint was filed on January 13, 2004. It seeks declaratory relief to the effect that each of the three joint ventures is dissolved; issuance of a decree of dissolution; an order that the defendants wind up the three joint ventures; and for an accounting from the defendants.

DISCUSSION

“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). Here, of course, all parties have moved for summary judgment, and all argue that there are no material facts in dispute that would prevent granting such judgment.

What is involved is the question of how a partnership, or its close cousin a joint venture, may be terminated. The SJC has spoken on this issue very recently in Anastos v. Sable, 443 Mass SJC #09252 (December 22, 2004); however, the issue before it there involved an attempted dissolution for cause, which is not what is presented here.

Both sides, and this Court, are comfortable applying Massachusetts partnership law to the three joint ventures under examination. After all, the difference between the two relationships is of no moment for the matters in issue here, and “nothing turns on the distinction.” Doiron v. Castonguay, 401 Mass. 705, 707 (1988). A partnership is “an association of two or more persons to carry on as co-owners of a business for profit.” G.L.c. 108A, sec. 6. See McMurtie v. Guiler, 183 Mass. 451, 452 (1903). A common incident of a partnership is that the members enter into an agreement to share profits and losses that may result from the use of capital, labor or skill. Boyer v. Bowles, 310 Mass. 134, 138 (1941). See also Kansallis Finance Ltd. v. Fern, 421 Mass. 659, 668 (1996).

A joint venture is similar, although usually the parties only get together for a single event or effort. See, e.g., Cardullo v. Landau, 329 Mass. 5, 8 (1952); Mendelsohn v. Leather Mfg. Corp., 326 Mass. 226, 233 (1950); Shain Invest. Co. v. Cohen, 15 Mass.App.Ct. 4 (1982)

BPR relies upon G.L.c. 108A, Sec. 31, which provides three ways in which a partnership may be dissolved: (1) without violation of the agreement, by the express will of any partner when no definite term or particular undertaking is specified; (2) in contravention of the agreement, where the circumstances do not permit a dissolution under any other provisions of section 31, by the express will of any partner at any time; and (3) by decree of court under Sec. 32.

Where a partnership agreement provides that the partnership is to continue indefinitely, and the partnership is therefore “at will,” a partner has the right to dissolve the partnership, and the dissolution occurs "(wjithout violation of the agreement between the partners.” G.L.c. 108A, Sec. 31(1) . . . In contrast, where the partnership agreement provides that the partnership is to continue for a definite term, a partner has merely the power to dissolve, and the dissolution occurs “[i]n contravention of the agreement between the partners.” G.L.c. 108A, Sec. 31(2).

Meehan v. Shaughnessy, 404 Mass. 419, 428-29 (1989). See also Anastos, supra, 443 Mass.

The defendants argue that Sections 4 and 11 of the three joint venture agreements prevent them from being an at-will relationship.

[595]*595The joint venture agreements are contracts. The interpretation of an unambiguous agreement is an issue of law for the Court. Lumbermans Mut Cas. Co. v. Zoltek Corp., 419 Mass. 704, 707 (1995). Contract language must be construed in its usual and ordinary sense. 116 Commonwealth Condominium Trust v. Aetna Cas. & Surety Co., 433 Mass. 373, 376 (2001); Citation Ins. Co. v. Gomez, 426 Mass. 379, 381 (1998).

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Related

BRP Group Ltd. Partnership v. Bendetson
21 Mass. L. Rptr. 556 (Massachusetts Superior Court, 2006)
BPR Group Ltd. Partnership v. Bendetson
19 Mass. L. Rptr. 177 (Massachusetts Superior Court, 2005)

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Bluebook (online)
18 Mass. L. Rptr. 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bpr-group-ltd-partnership-v-bendetson-masssuperct-2005.