Carey v. Bray

4 Mass. L. Rptr. 175
CourtMassachusetts Superior Court
DecidedAugust 16, 1995
DocketNo. 886895E
StatusPublished

This text of 4 Mass. L. Rptr. 175 (Carey v. Bray) 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
Carey v. Bray, 4 Mass. L. Rptr. 175 (Mass. Ct. App. 1995).

Opinion

Lauriat, J.

The plaintiff, Daniel J. Carey (“Carey”), has brought a complaint for contempt and a separate civil action against the defendant, Frederick J. Conroy (“Con-roy”), alleging, inter alia, civil contempt, fraud, misrepresentation, and violation of G.L.c. 93A. The allegations principally arise out of a settlement agreement which was entered into between Carey and defendant Robert Bray (“Bray”) in Suffolk County Superior Court Civil Action No. 88 6895-E (“the 1988 Action”). Conroy has now moved for summary judgment on both the complaint for contempt filed in the 1988Action and in Suffolk County Superior Court Civil Action No. 935608-E (“the 1993 Action’’). For the reasons which follow, Conroy’s motions for summary judgment are denied.

BACKGROUND

On December 8, 1988, Carey filed a complaint in the 1988 Action alleging that Bray had breached his partnership agreement with Carey. More specifically, Carey alleged that Bray had improperly used partnership funds to enter into a condominium venture and to purchase a one-third interest in the Cliffmont Realty Trust (“Cliffmont”).1 Carey alleged that Bray, in an attempt to conceal this asset from Carey, was preparing to transfer a portion of his beneficial interest in Cliffmont to his sister, Suzanne Gordon.

On September 16, 1992, a jury returned a verdict in favor of Carey in the amount of $750,000 plus [176]*176interest and costs. Following the trial, Carey, his attorney Thomas S. Morey (“Morey”), Bray and his attorney Conroy, engaged in settlement discussions. As a result of these discussions, the parties entered into a settlement agreement (“the 1992 Settlement Agreement”). Pursuant to the 1992 Settlement Agreement, Bray agreed to pay Carey $300,000 and to pay Morey $40,000 in legal fees. Bray paid $100,000 to Carey at the closing and agreed to pay $50,000 each year thereafter for a specified term.2 Bray further agreed to grant Carey a second mortgage on a condominium known as 9 and 9A Gerry Street, Cambridge, Massachusetts (“the Condominium”) in the amount of $220,000 in order to secure the promissory note executed in conjunction with the settlement.

On December 31, 1992, the date of the closing on the 1992 Settlement, Morey learned that there were five junior mortgages on the Condominium. Before closing on the settlement agreement, Morey obtained Conroy’s personal written “guaranty” that he would obtain mortgage discharges on the five junior mortgages and record those discharges in order to secure Carey in second position.3 The parties then closed on the settlement at the Registry of Deeds. Conroy, Morey, Carey, and Bray were signatories to the 1992 Settlement Agreement.

Conroy admits that, while he obtained the mortgage discharges at or shortly after the closing, he “inadvertently” failed to record them, and instead placed them in his file. (Aff. of Frederick J. Conroy, ¶3.) When Carey’s present counsel, Arthur C. Carmen (“Carmen”), discovered that the mortgage discharges had not been recorded, he notified Conroy of the problem by a letter on August 10, 1993 and telephonically on August 16, 1993. Conroy made no attempt to remedy the problem by recording the mortgages. On August 28, 1993, Carmen sent Bray and Conroy a demand letter pursuant to G.L.c. 93A which stated that Conroy’s failure to record the mortgage discharges constituted an unfair and deceptive trade practice. Conroy also failed to respond to this demand letter.

On October 5, 1993, Carey filed suit against Bray and Conroy alleging, inter alia, fraud, tortious deceit, breach of contract, and violation of G.L.c. 93A. In addition to allegations that Conroy wrongfully failed to record the mortgage discharges, Carey alleged that Conroy misrepresented the value of the Condominium and Cliffmont. On October 12, 1993, Conroy recorded the mortgage discharges.

On February 16, 1994, Carey filed a separate complaint for civil contempt in the 1988 Action, alleging that Bray, Conroy, and others had violated a stipulation executed on December 20, 1988 restraining the disbursement of “any sums of money.. . until further order of this Court.” Carey alleged that Conroy and Bray participated in a scheme whereby Cliffmont was directed by Conroy and Bray to issue checks payable to West Roxbury Roofing Company, Inc. (“WRRC”) for debts purportedly owed by Cliffmont. Bray’s sister, Suzanne Gordon, was the sole officer and shareholder in WRRC. Carey alleged that Conroy then endorsed the WRRC checks and deposited them in Bray’s account. This alleged scheme was designed to deplete Cliffmont’s equity and to funnel the money to Bray in violation of the parties’ stipulation.

On December 14, 1994, Bray and Carey entered into a settlement and compromise (“the 1994 Agreement”) with respect to both the 1988 Action and the 1993 Action. In the 1994Agreement, Carey agreed to the terms set forth in the 1992 Settlement Agreement plus an additional sum of $35,000. Carey also agreed to dismiss five other co-defendants (the ‘Trust defendants”) in the 1988 Action without compensation. Conroy did not participate in these settlement discussions.

Conroy has now moved for summary judgment on both of these actions on the following grounds: (1) that his ultimate recording of the mortgage discharges renders Carey’s claims moot; (2) that, as Bray’s attorney, he owed no duty to Carey; and (3) that the 1994 Settlement Agreement nullifies all of Carey’s claims for damages.

DISCUSSION

Summary judgment shall be granted where there are no genuine issues as to any material fact and where the moving party is entitled 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 affirmatively demonstrating the absence of a triable issue, “and [further] that the moving party is entitled to judgment as a matter of law.” Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989).

I

Conroy contends that his ultimate recording of the mortgage discharges renders all of Carey’s claims based on his failure to record those discharges moot. The court disagrees.

At the closing, Conroy promised, in writing, to record the mortgage discharges so that Carey would have a second mortgage on the Condominium. The consideration for this promise was Carey’s settlement of the claim. When interpreting a contract, “a court should . . . give! ] a construction which will make it a rational business instrument and will effectuate what appears to have been the intention of the parties.” Finn v. McNeil, 23 Mass.App.Ct. 367, 372 (1987), quoting Bray v. Hickman, 263 Mass. 409, 412 (1928). “The judicial bias is towards interpreting a contract ‘so as to make it a valid and enforceable undertaking rather than one of no force and effect.’ ” Finn, supra at 372, quoting Shayeb v. Holland, 321 Mass. 429, 432 (1947).

The most reasonable interpretation of Conroy’s personal “guaranty” is that he would discharge the mortgages and record the discharges immediately as part of the settlement. As a matter of law, Conroy’s failure to do so constitutes a breach of contract. Accordingly, Carey is entitled to judgment in his favor on Count IV [177]*177(Breach of Contract) of the 1993 Action. The issue of damages is reserved for a later hearing.

Carey further asserts that Conroy violated G.L.c.

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Bluebook (online)
4 Mass. L. Rptr. 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carey-v-bray-masssuperct-1995.