Cummings Properties, LLC v. Massachusetts General Physicians Organization

23 Mass. L. Rptr. 205
CourtMassachusetts Superior Court
DecidedOctober 2, 2007
DocketNo. 063450
StatusPublished

This text of 23 Mass. L. Rptr. 205 (Cummings Properties, LLC v. Massachusetts General Physicians Organization) 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
Cummings Properties, LLC v. Massachusetts General Physicians Organization, 23 Mass. L. Rptr. 205 (Mass. Ct. App. 2007).

Opinion

Billings, Thomas P., J.

BACKGROUND

The plaintiff, Cummings Properties, LLC (“Cummings”) brought this action against Massachusetts General Physicians Organization (“MGPO”), after MGPO repudiated a lease for office space in a building owned by Cummings. The Complaint asserts counts for breach of contract and promissory estoppel.

MGPO maintains that it has no obligation to Cummings, reasoning that because the property was subject to an Activity and Use Limitation that Cummings failed to incorporate into the lease as required by law, the contract is against public policy and void ab initio.

The action is before the court on MGPO’s motion for summary judgment, and Cummings’s motion for a continuance pursuant to Mass.R.Civ.P. 56(f). For the reasons that follow, Cummings’s request for Rule 56(f) relief is DENIED, and MGPO’s motion for summary judgment is ALLOWED as to Count I (breach of contract) but DENIED as to Count II (promissory estop-pel).

FACTS

The summary judgment record reveals the following facts, which are either undisputed or taken in the light most favorable to Cummings, as the non-moving party.

In 1996, Cummings’s predecessor in title1 to 10-P Commerce Way in Woburn, Massachusetts executed a Notice of Activity and Use Limitation (“AUL”) for the property, pursuant to the Department of Environmental Protection (“DEP”) regulations promulgated as part of the Massachusetts Contingency Plan (“MCP”), 310 CMR §40.000 et seq. (1999). The AUL was prepared and recorded in lieu of removing certain hazardous materials from the groundwater and soil at 10-P Commerce Way.

In 2002, after DEP audited the property under the Brownfields Act (Chapter 206 of the Acts of 1998), it required that the owner execute an amended, and more restrictive, AUL for Commerce Way. As before, the amended AUL expressly permitted use of the property for “office; industrial; commercial; retail; hotel/lodging; warehouse; healthcare; and research and development.” Now, however, “child care, day care, and residential purposes” were expressly prohibited.

The 1996 AUL contained the following Language:

Incorporation Into Deeds, Mortgages, Leases, and Instruments of Transfer. This Notice shall be incorporated into all deeds, easements, mortgages, leases, licenses, occupancy agreements or any other instrument of transfer, whereby an interest in and/or right to use the Property or portion thereof is conveyed.

The 2002 amendment is on a different form, which sets out the new use restrictions and provides, “Except as expressly amended herein, the Original AUL is hereby ratified and confirmed.”

In June 2005, MGPO contacted Cummings with a Request for Proposal to lease space to house its LADDERS program, which provides medical and therapeutic care for children with autism and related disorders. In response to the RFP, Cummings suggested that MGPO lease space at 10 Gill Street in Woburn, Massachusetts.

From late June to early August of2005, a real estate agent (Julie Gray) and an attorney (Larry Scult) representing MGPO negotiated with Cummings for space at 10 Gill Street. In the course of the discussions Cummings sent to Scult and Gray, and they reviewed, an initial draft of a lease for this address. Attached to the draft lease was a Rider, which referenced in paragraph C an AUL pertaining to three properties owned by Cummings and its affiliates. 10-P Commerce Way was one of these properties; 10 Gill Street was not.

Scult returned to Cummings a redlined copy of the draft with his changes. One of these changes was a strikeout of Paragraph C of the rider, because it had no application to the 10 Gill Street property. Scult did not examine the now deleted paragraph C any further, or make note of it for any purpose. Neither he nor Gray ever sent a draft of the lease to — or discussed paragraph C of the Rider with — their clients at MGPO.

Thereafter, Scult and the attorneys for Cummings exchanged several more drafts of the lease for 10 Gill Street, none of which contained any reference to an AUL. Cummings was simultaneously negotiating with another tenant, however, and MGPO — -which intentionally stalled the negotiations while it worked internally on the business issues associated with the expansion of the LADDERS program — lost the race. On August 17, 2005 MGPO finally told Cummings it was ready to sign, only to learn that the rival tenant had leased the space that morning.

Cummings suggested, however, that MGPO consider leasing space in other buildings that Cummings owned or managed. The first such property suggested (14 Gill Street) did not meet MGPO’s needs, so Cummings suggested 10-P Commerce Way. This, MGPO [207]*207decided, would do, and it let Cummings know that it would lease these premises on the same economic terms as had been negotiated for 10 Gill Street.

On August 30, 2005, therefore, Cummings proffered to Scult an initial draft of a lease and rider for 10-P Commerce Way. This draft was based on (and inferably, word-processed from) the lease that had already been negotiated for 10 Gill Street. Presumably for this reason, neither the draft Lease nor the rider for 10-P Commerce Way incorporated or otherwise referenced the AUL applicable to 10-P Commerce Way. The omission was inadvertent on Cummings’s part.

The drafts exchanged thereafter similarly omitted any reference to the AUL, as did the final executed lease for 10-P Commerce Way which the parties executed on September 16, 2005. Daniel Ginsburg, MGPO’s President and Chief Operating Officer who signed for MGPO, did not know that the property was subject to an AUL; nor does it appear that anyone else at MGPO knew this.

At some point thereafter, someone at Cummings realized that paragraph C’s reference to the AUL, intentionally deleted from the lease for 10 Gill Street (to which it did not apply), should have been re-in - serted into the lease for 10-P Commerce Way (to which it did apply). Cummings’s attorney (John Wiseman) notified Gray of the oversight. The parties were already planning to amend the lease once MGPO decided whether it would pay or amortize certain build-out costs for which it was responsible. Wiseman suggested that the AUL provision be re-inserted at that time.

Gray asked on November 8 or 9 to see the AUL language, and Wiseman e-mailed it to her. Meanwhile, Cummings continued with the process (begun in early September but not yet half-way completed), of building out the space to MGPO’s requirements. The build-out was substantially completed by December 1, the date MGPO had told Cummings it wanted to occupy the space.

Throughout November and the first half of December, the parties were in communication regarding the AUL and environmental issues, the build-out, and other issues regarding the property and the lease. No detailed recounting is required here; suffice it to say that the correspondence, both internally within MGPO and between MGPO and Cummings,2 suggests (when viewed in the light most favorable to Cummings) the following.

There were numerous communications throughout November concerning the certificate of insurance Cummings required from MGPO.
As late as November 29, MGPO was e-mailing Cummings on such subjects as signage with the LADDERS logo, a table for the conference room, and adding a partition in the kitchen area.

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Bluebook (online)
23 Mass. L. Rptr. 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cummings-properties-llc-v-massachusetts-general-physicians-organization-masssuperct-2007.