Brooks Place Properties, LLC v. DiMaria

30 Mass. L. Rptr. 147
CourtMassachusetts Superior Court
DecidedJune 18, 2012
DocketNo. SUCV201101467BLS1
StatusPublished

This text of 30 Mass. L. Rptr. 147 (Brooks Place Properties, LLC v. DiMaria) 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
Brooks Place Properties, LLC v. DiMaria, 30 Mass. L. Rptr. 147 (Mass. Ct. App. 2012).

Opinion

Lauriat, Peter M., J.

In this action, the plaintiff, Brooks Place Properties, LLC (“BPP”) seeks, inter alia, to recover damages from Century 21 Real Estate LLC (“Century 21”) for misrepresentations Arthur Vekos allegedly made in connection with the sale of four properties. Century 21 has now moved for summary judgment on all counts against it. For the following reasons, Century 21’s motion is allowed.

BACKGROUND

The relevant facts are taken from the record, viewed in the light most favorable to BPP as the non-moving party. See Attorney Gen. v. Bailey, 386 Mass. 367, 371 (1982).

[148]*148Century 21 is a franchising corporation that grants non-exclusive rights to use its system of operating real estate businesses to independently-owned and operated real estate franchises. In exchange for payments of royalties and other fees, Century 21 permits franchisees to use Century 21’s trademarks, trade names and service marks in the course of their business. Century 21 also provides franchisees with assistance in national advertising and promoting its brand. Century 21 does not operate as a real estate broker or real estate agency in Massachusetts.

Heritage Realty Associates, Inc. (“Heritage”) is areal estate brokerage firm in Massachusetts. Between February 1998 and January 2001, Heritage entered into four separate franchise agreements with Century 21 for the operation of real estate brokerage offices in four different locations. While the location address varied, each Franchise Agreement contained the same general terms — Heritage agreed to pay royalty fees and comply with Century 21’s Policy and Procedure Manual, and in exchange, Century 21 agreed to provide certain training programs, national advertising and referral forms for use in referring business between Century 21 franchises.

The Franchise Agreements also required Heritage to place a conspicuous sign near the front entrance of its offices, and to include on its business cards, stationery, and promotional and advertising materials, the words “Each Century 21® office is independently owned and operated.” The Franchise Agreements also stated that “Franchisor [Century 21] shall not regulate the hiring or firing of Franchisee’s salespeople, the parties from whom Franchisee may accept listings or for whom Franchisee may sell properly, the commission rates charged by Franchisee, the commission splits between Franchisee and Franchisee’s salespeople, the details of the work performed by Franchisee or its sales associates, the manner in which Franchisee obtains listings or sells property, the working conditions of Franchisee’s salespeople, or Franchisee’s contracts with clients or customers ...” Ex. A §14.B.

As a franchisee, Heritage was required to follow Century 21’s Policy and Procedure Manual, which controlled Heritage’s real estate listings, the words Heritage used to answer its telephone, where Heritage deposits its checks, the location of its offices, and what furniture Heritage may use. Century 21 consultants were occasionally sent to Heritage offices to ensure Heritage followed these strict guidelines.

BPP was a private lender who provided loans to prospective buyers to purchase four properties in Massachusetts. Arthur Vekos, a Heritage independent contractor, served as the real estate agent for the sellers in each of the transactions at issue. Vekos allegedly told BPP that he was a very experienced Century 21 real estate agent, that he was familiar with the properties involved in the transactions, and that the properties were “well valued.” Vekos denies telling BPP he was a Century 21 agent. Although Vekos has a Century 21 email address, BPP does not recall receiving any emails from this address. BPP did not receive any communications from other Century 21 representatives.

BPP believed Century 21 agents had a reputation for honesty, reliability and fair dealing because of its national advertising campaign in the 1980s and 1990s. But BPP cannot recall a specific advertisement or a Century 21 slogan on which it relied, and it denies relying on any advertisements from 2007 when the transactions closed. Nevertheless, on the belief that Vekos was an honest, reliable Century 21 agent, BPP proceeded with the transactions.

After the transactions closed on August 7, 2007, BPP discovered the properties were worth a fraction of their purchase prices, that the titles were subject to defects, encumbrances and liens, and that the buyers defaulted on their loan payments. BPP suffered substantial monetary losses as a result of these transactions.

BPP filed numerous claims against multiple defendants, alleging fraud, negligence and negligent misrepresentation as to Vekos, and negligence and violations of c. 93A as to Heritage and Century 21. Century 21 has moved for summary judgment on all counts against it.

DISCUSSION

Summary judgment shall be granted where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Mass.R.Civ.P. 56(c). The moving party bears the burden of affirmatively demonstrating that there is no genuine issue of material fact on each relevant issue and that the summary judgment record shows that it is entitled to judgment as a matter of law. Pederson v. Time, Inc., 404 Mass. 14, 16 17 (1989). The moving party may satisfy this burden by submitting affirmative evidence negating an essential element of the non-moving party’s case, or by demonstrating that the non-moving party has no reasonable expectation of proving an essential element of its case at trial. Flesner v. Technical Comm’ns Corp., 410 Mass. 805, 809 (1991); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991).

When the moving party establishes the absence of a triable issue, the burden shifts to the non-moving party to allege specific facts establishing the existence of a genuine issue of material fact. Pederson, 404 Mass. at 17. The non-moving party cannot defeat summary judgment by resting on its pleadings or mere assertions of disputed facts. LaLonde v. Eissner, 405 Mass. 207, 209 (1989). In considering a motion for summary judgment, the court may only consider pleadings, depositions, answers to interrogatories, admissions on file, and affidavits which would be admissible in evidence at trial. Community Nat’l Bank v. [149]*149Dawes, 369 Mass. 550, 553 (1976); Mass.R.Civ.P. 56(c). See Glaz v. Ralston Purina Co., 24 Mass.App.Ct. 386, 387 (1987) (judge properly disregarded deposition excerpts that were conclusory in nature and based on hearsay); Madsen v. Erwin, 395 Mass. 715, 721 (1985) (“The rationale for requiring admissible evidence in affidavits is to ensure that trial would [not be] futile on account of lack of competent evidence” (quotations omitted)). The court must view the evidence in the light most favorable to the non-moving party. Beal v. Board of Selectmen of Hingham, 419 Mass. 535, 539 (1995).

I. Negligence as to Centuiy 21 (Count XXIII)

BPP’s First Amended Complaint alleges that Century 21 is vicariously liable for Vekos’s negligent acts; that Centuiy 2 l’s principals, officers and directors are liable for the negligent hiring and supervision of Vekos; and that as a Centuiy 21 employee, Vekos was permitted to operate negligently.

Centuiy 21 responds that Vekos was neither its employee nor its agent and, therefore, it cannot be held vicariously liable on any of the negligence claims.1

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Bluebook (online)
30 Mass. L. Rptr. 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brooks-place-properties-llc-v-dimaria-masssuperct-2012.