Duxbury v. Roberts

1982 Mass. App. Div. 46, 1982 Mass. App. Div. LEXIS 79
CourtMassachusetts District Court, Appellate Division
DecidedMarch 3, 1982
StatusPublished
Cited by2 cases

This text of 1982 Mass. App. Div. 46 (Duxbury v. Roberts) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duxbury v. Roberts, 1982 Mass. App. Div. 46, 1982 Mass. App. Div. LEXIS 79 (Mass. Ct. App. 1982).

Opinion

Jodrey, J.

This is an action on a promissory note made by the defendants individually and as trustees of B.C.R. Realty Trust, payable to Keith J. C. Baines, trustee of the 22 Phillips Street Realty Trust, or order, which the plaintiff herein claims was assigned to him.

The complaint seeks recovery of $29,800 being the principal amount of the note together with interest and reasonable attorney fees in the amount of $5,960.

In their answer, the defendants admit executing the promissory note and state they have no knowledge, information or belief regarding the allegations concerning the assignment of the note and call upon the plaintiff to prove the same. The defendants further deny that they owe the plaintiff the amount of the note, interest or attorney’s fees as stated in the complaint. By way of affirmative defenses, the defendants further claim that if they executed the note, it was obtained and procured by the fraud of the plaintiff; that there was a failure of consideration in exchange for the defendants executing the note; and that there was a lack of consideration for the defendants executing the note. The defendants also counterclaimed alleging that the plaintiffs assignor wrongfully [47]*47misrepresented to the defendants the status of the premises known as 22 Phillips Street, Boston which the plaintiff’s assignor conveyed to these defendants for the consideration stated in the note and for which a mortgage was executed as security therefor. The defendants claim by way of counterclaim that the misrepresentation of the plaintiffs assignor caused them damages in the amount of $43,000 and claimed said amount together with interest thereon from the date of purchase of said premises.

The trial court found for the plaintiff on his claim, and for the plaintiff on defendants’ counterclaim and entered judgment in the amount of $42,793. The amount of damages awarded was later revised as will appear hereafter.

At the trial there was evidence tending to show:

1.) On September 25,1972, KeithJ. C. Baines as trustee of the 22 Phillips Street Realty Trust under a declaration of trust dated October 7,1971, recorded with Suffolk Registry of Deeds, Book 8481, Page 405, conveyed a parcel of real estate on Phillips Street, in said Boston, to the defendants Jack E. Roberts, J. Merritt Brown, and Richard J. Cammarata, as trustees of B.C.R. Realty Trust, under a declaration of trust dated June 30, 1972, duly recorded, by deed recorded with said registry, Book 8569, Page 218. This conveyance was by its terms subject to a prior mortgage to the Volunteer Cooperative Bank.

2.) As part of the transactions on September 25,1972, the said defendants, individually and as trustees aforesaid executed a promissory note payable to Keith J. C. Baines, trustee of the 22 Phillips Street Realty Trust, for $29,800, payable in five years, with interest thereon payable monthly at the rate of 12% per annum. The defendants, makers of the note, jointly and severally, waived demand, notice, protest, presentment and dishonor, and agreed to pay all charges of the holder thereof in connection with the enforcement and collection of the same including reasonable attorneys’ fees, provided the holder should give the obligors 5 days written notice of default; in the event of 15 days default the entire obligation would become due and payable at the option of the holder, notwithstanding the waiver of any prior breach.

This note was secured by a second mortgage of the real estate, aforesaid, dated September 25, 1972, and recorded with said registry, Book 8569, Page 220.

3.) In the summer of 1975, Keith J. C. Baines asked the plaintiff, Ralph G. Duxbury, for his help in locating a business investment opportunity in Florida. Duxbury found such an opportunity in a water bottling company called Crystal Rock Water, Inc., a Florida corporation, and assisted Baines in the purchase of its assets. Crystal Rock originally had refused to sell its business to Baines, primarily because he was a stranger to the seller and was not a native of Florida. Duxbury was able to purchase for Baines because he was a native of Florida and had had business dealings with and was a personal friend of the president of Crystal Rock. As a result of effecting this purchase, Baines became, according to their agreement, liable to pay Duxbury a “finder’s fee” amounting to $25,000. In partial payment of that obligation Baines executed and delivered to Duxbury the following instrument:

PARTIAL ASSIGNMENT OF NOTE AND MORTGAGE KNOW ALL MEN BY THESE PRESENTS:
That I, Keith Baines, party of the first part, in consideration of the sum of $10 (TEN DOLLARS) and other valuable considerations, received from or on behalf of RALPH G. DUXBURY, 320 North Dixie Highway, Lake Worth, Florida, party of the second part, at or before the ensealing and delivery of these presents, the receipt whereof is hereby acknowledged, do hereby grant, bargain, sell, assign, transfer and set over unto the said party of the second part all of my right, title and interest in and to a % (one-half) undivided interest in that certain mortgage made by BCR Realty Trust and executed by Merritt Brown, Richard Cammarata and Jack Roberts in favor of 22 Phillips Street [48]*48Realty Trust, Keith Baines, Trustee, payable to Keith Baines and Mac Grant, as more particularly set forth and recorded in Registry of Deeds Book 8569, page 220, public records of Suffolk County, Massachusetts. Together with the note or obligation described in said mortgage, and the moneys due and to become due thereon with interest.
TO HAVE AND TO HOLD the same unto the said party of the second part, heirs, legal representative, successors and assigns forever.
IN WITNESS WHEREOF, I have hereunto set my hand and seal, this 31st day of March, A. D., 1976.
Signed, sealed and delivered in presence of:
/S/ Lucy Fay Couch /Si Keith Baines (Seal)
Notary Public, State of Florida at Large
The above instrument was prepared, executed, delivered and acknowledged in Florida.

4.) Although the note provided for monthly payments of interest, defendants made but two payments thereon in 1976: $2,000 in February or March and $2,422,46 in August. The August payment cured an intervening default and brought the obligation up to date, with the next payment due on September 24, 1976. The September payment was not made, nor any payments thereafter.

5.) Baines testified that he owned, as Trustee of The 22 Phillips Street Trust, an apartment building at 22 Phillips Street. He testified that he had rehabilitated that building in 1971 and as part of the rehabilitation, he had converted the building from a five unit into an eight unit apartment building. According to Baines’ testimony, he had obtained several building permits from the City of Boston which authorized him to perform his rehabilitative work.

6.) Baines testified further that he did not make any representations to the defendant that the building was being occupied under an impermissible use; that the defendant, Roberts, never asked him whether he had obtained all the necessary documents to allow an eight unit apartment building. Baines also testified that his only conversation with any of the defendants prior to the closing on the sale of 22 Phillips Street was a conversation with Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
1982 Mass. App. Div. 46, 1982 Mass. App. Div. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duxbury-v-roberts-massdistctapp-1982.