Dibiase Builders, Inc. v. Lovis Ave. Trust

18 Mass. L. Rptr. 438
CourtMassachusetts Superior Court
DecidedOctober 26, 2004
DocketNo.033063C
StatusPublished
Cited by1 cases

This text of 18 Mass. L. Rptr. 438 (Dibiase Builders, Inc. v. Lovis Ave. Trust) 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
Dibiase Builders, Inc. v. Lovis Ave. Trust, 18 Mass. L. Rptr. 438 (Mass. Ct. App. 2004).

Opinion

Lauriat, J.

The defendants, Lovis Avenue Trust (“the Trust”) and Andrew J. Campbell and Grace E. Campbell, Trustees (“the Trustees”), have moved for summary judgment in this action on the ground that the plaintiff, DiBiase Builders, Inc. (“DiBiase”), cannot succeed as a matter of law on its claims of breach of contract and violation of G.L.c. 93A arising from a failed purchase of real property in Wakefield, Massachusetts. For the reasons set forth below, the defendant’s motion for summary judgment is allowed.

BACKGROUND

The following undisputed facts underlie the defendant’s motion for summary judgment. Since December 15, 1997, the Trust has owned the property at issue, 18B Forest Street and 17AA Bonair Avenue, in Wakefield, Massachusetts. In September 2002, the property was marketed for sale by Catherine Mackey, owner of Home Towne Realty, Inc.

On September 26, 2002, Campbell, listed as Trustee of the Trust, signed an Offer to Purchase (“Offer”) presented by DiBiase, which offered a purchase price of $825,000. The Offer stated that the agreement was subject to:

1. Buyer obtaining all approvals for six building lots;
2. Buyer receiving a financing commitment within sixty days after final approvals;
3. Buyer completing the approval process for the definitive subdivision plan;
4. Execution of a mutually satisfactory Purchase and Sale agreement;
5. Payment of $1,000 to bind the offer and a further $19,000 down payment upon execution of the Purchase and Sale agreement.

The Offer stated that it would remain open until 5:00 p.m. on September 26, 2002.

[439]*439On May 14, 2003, after seven months of negotiations, counsel for DiBiase forwarded to the Trustees’ attorney a final version of the Purchase and Sale Agreement signed by DiBiase. In an addendum to the agreement, DiBiase crossed out the following language.

If any of the Boards in the Town of Wakefield deny this application, Buyer has no right to appeal. A denial by any Board shall render this Agreement null and void and all deposits held hereunder shall be returned with no further recourse to or by any party.

The parties agree that obtaining the various Board approvals could take three months to two years to complete. The Trustees did not sign the Purchase and Sale Agreement submitted by DiBiase’s attorney.

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 Mass.R.Civ.P. 56(c); Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). The moving party may satisfy this burden either by submitting affirmative evidence that negates an essential element of the opposing party’s case or by demonstrating that the opposing party has no reasonable expectation of proving an essential element of his case at trial. Flesner v. Technical Communications Corp., 410 Mass. 805, 809 (1991); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 710 (1991).

I.

The issue in the present case is whether DiBiase and the Trust were bound by the Offer they both had signed, or whether they were not bound until they executed the contemplated Purchase and Sale Agreement. Both parties cite McCarthy v. Tobin, 429 Mass. 84 (1999), as a leading case for determining whether the terms the Offer recited the essential elements of a contract for the sale of properly. The Trust offers McCarthy in support of its contention that the Offer, which does not recite a description of the property or the time and place of closing, is lacking significant material terms. The Trust therefore contends that at the time of the Offer, the parties were not in agreement on all material aspects of the transaction and the negotiation of a purchase and sale agreement was necessary to bind the parties.

DiBiase also relies on McCarthy in support of its contention that the Offer does not need to contain all the essential terms of a contract and that “the controlling force is the intention of the parties.” Id. at 87. However, case law suggests that a court may determine, based on the writings of the parties, whether the offer contained the essential elements of a binding contract. See McCarthy v. Tobin, 429 Mass. 84 (1999); Lafayette Place Assocs. v. Boston Redevelopment Auth., 427 Mass. 509 (1998); Blomendale v. Imbrescia, 25 Mass.App.Ct. 144 (1987); Goren v. Royal Investments, 25 Mass.App. 137 (1987).

In McCarthy, the Supreme Judicial Court held that the disputed offer to purchase contained material terms suggesting that the parties intended to be bound. The material terms included: (1) a description of the property; (2) the price to be paid; (3) the deposit requirements; (4) limited title requirements; and (5) the time and place for closing. McCarthy, supra at 85. The offer also included the language that the offer was a legal document that “create[d] binding obligations.” Id. The changes suggested in the purchase and sales agreement pertained to: (1) the requirements for good title; (2) the risk of casualty to the premises before sale; and (3) acknowledgment that the premises’ systems were operational. Id. The Court deemed these revisions “ministerial and nonessential terms of the bargain” and held that the offer to purchase was binding as a contract for the sale of land. Id. at 87.

If the parties have agreed upon all material terms, it may be inferred that the purpose of a final document which the parties agree to execute is to serve as a polished memorandum of an already binding contract. Goren v. Royal Invs., Inc., 25 Mass.App.Ct. 137, 140 (1987). However, in some instances, the failure to use definite terms is fatal, especially where parties have not formalized negotiations or have left open essential terms. Lafayette Place Assocs. v. Boston Redevelopment Auth., 427 Mass. 509, 517 (1998). The Trust contends that the Offer at issue is not a binding contract since it does not address the description of the properly or the time and place of performance, and therefore the transaction “amounts to an open ended arrangement. ”

In Goren v. Royal Investments, 25 Mass.App. 137 (1987), the Appeals Court found that an offer to purchase was binding on the parties and the execution of a purchase and sale agreement was a mere formality pertaining to “subsidiary” matters. The signed offer to purchase was the fifth draft and included a description of the property and a closing date. Id. at 138. The Court noted that all economic issues were resolved in the offer and that the issues addressed in the purchase and sale agreement, such as title, insurance, and delivery of deed, could be resolved by existing customary norms. Id. at 141.

In contrast to the offers that were the subject of the McCarthy and Goren cases, the Offer upon which DiBiase relies omits basic information, specifically, a description and location of the property and a closing date. The omission of a closing date, in effect, leaves acceptance by DiBiase open for an indefinite period of time. Although the

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Bluebook (online)
18 Mass. L. Rptr. 438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dibiase-builders-inc-v-lovis-ave-trust-masssuperct-2004.