Eastern Building Services Corp. v. Matzell, Richard & Watts, Inc.

23 Mass. L. Rptr. 725
CourtMassachusetts Superior Court
DecidedJanuary 23, 2008
DocketNo. SUCV200302601C
StatusPublished

This text of 23 Mass. L. Rptr. 725 (Eastern Building Services Corp. v. Matzell, Richard & Watts, Inc.) 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
Eastern Building Services Corp. v. Matzell, Richard & Watts, Inc., 23 Mass. L. Rptr. 725 (Mass. Ct. App. 2008).

Opinion

Smith, Herman, JR., J.

INTRODUCTION

After a juiy trial on the plaintiffs, Eastern Building Services Corp., breach of contract, conversion, and violation of G.L.c. 93A claims and on the defendant’s, Matzell, Richard & Watts, Inc., quantum meruit counterclaim, the jury returned verdicts for the plaintiff on each of its three claims. However, the jury’s verdict, finding the defendant willfully and knowingly violated G.L.c. 93A, is advisory only. After consideration of the parties’ proposed rulings of law and findings of fact, the trial testimony, the documentary evidence presented at trial, and the reasonable inferences which may be drawn from the evidence, this Court finds that the defendant did not engage in any unfair or deceptive acts with respect to the breach of contract and the conversion claims. However, the Court does find that the defendant committed an unfair and deceptive act in violation of G.L.c. 93A when it attempted to wrongfully interfere with the plaintiffs business relations with Galaxy Internet Services, the plaintiffs website host provider. Further, the Court finds that the violation was willful and knowing. However, because the plaintiff has failed to prove its c. 93A damages, the Court shall render judgment in favor of the defendant. The Court makes the following findings and rulings.

FINDINGS OF FACTS

The plaintiff, Eastern Building Services Corp. (“EBS”), is a domestic profit corporation organized in Massachusetts on September 1, 1982 with a principal place of business at 900 Chelmsford Street, Lowell, MA. The defendant, Matzell, Richard & Watts, Inc. (“MRWj, is a domestic profit corporation, formed in Massachusetts on February 1, 1983 with its offices located at 195 State Street, Boston, MA.

In January of 2002, EBS, through its president, Gabriel Zizza (“Zizza”), set out to hire a new advertising agency. In furtherance of his desire to hire a new advertising agency for EBS, Zizza sought and received a recommendation from his photographer for three advertising agencies. The defendant, MRW, was one of the three advertising agencies recommended to Zizza by his photographer. After interviewing each agency, Zizza chose to hire MRW, the largest of the three competitors and more expensive, to assist in providing advertising and marketing services to EBS in the promotion of its cleaning business.

During product and services presentations and conferences, MRW presented, predominately by MRWs employee and agent, Chuck Booth, various projects to EBS as estimates under multiple job names/titles. For example, MRW, gave Zizza a document, called an Agency Profile. (Trial Exhibit #1.) The Agency Profile described the make up of MRW, its business relationships, and scope of its services. Specifically, the Agency Profile indicated that MRW had 16 employees, that it served 10 full service clients and 10 project-based clients and that its billings range was $50,000 to $5,000,000. It also listed the scope of [726]*726services, described a service known as “ClientVue,” set forth hourly rates for both Retainer Based services and Project Based services, provided a brief statement about the principals and contained a list of current clients.

In addition, MRW provided Zizza with a “Proposal” (Trial Exhibit #2) that set forth the Steps and Deliver-ables which consisted of the Design Phase, the Production Phase and the Media Phase. Each of the above Steps and Deliverables were divided into components, each of which provided a brief description, timeline and a budget. Following the above-described Design Phase, Production Phase and Media Phase, the Proposal then set forth Logistics with respect to the anticipated business arrangement and References. The Proposal concluded with a summary of the three phases described therein, a description of the General Terms and Conditions and a description of the Agency Policy on Electronic File Ownership And Electronic File Duplication. The summary of the three phases of the Proposal contained a total budget range of $89,000.00 - $127,500.00, plus the cost of media placement, illustration, photography, printing, lists, postage, mailhouse, etc.

Following the Proposal referred to above, but prior to hiring MRW, MRW sent Zizza a letter dated January 25, 2002, which contained an explanation of Account Management billing. (Trial Exhibit #3.) In particular, it drew attention to the difference between Account Management expenses and the additional expenses associated with Deliverables, which were described in the Proposal. The letter specifically informed Zizza that Account Management was an expense in addition to the expenses set forth in the Proposal. Despite having the Proposal in his possession prior to the commencement of the business relationship between MRW and EBS, Zizza never signed and returned the Proposal and MRW never insisted on receiving the signed Proposal prior to the commencement of its performance.

On or about February 1, 2002, Zizza informed MRW of his decision to hire them as his new advertising agency and of his decision to go with the Retainer Based billing option as opposed to the Project Based billing option. The Retainer Based billing was to run from February 1, 2002 through July 2002, at which time the parties agreed that the retainer would be adjusted up or down after a review of the day to day account work status. Between February 2002 and August 2002 EBS made 6 payments of $4,375.00 for Account Management for a total payment of $26,250.00. In addition, during the course of the business relationship, EBS paid an additional $52,012.50 for Deliverables as opposed to Account Management. (Trial Exhibit #5.) The first payment for Deliverables was made on February 9, 2002 and the last payment for Deliverables was made on September 26, 2002. Thus, EBS’s total payments to MRW through October 2002 was $78,262.50.

For the months of September through December 2002, MRW mistakenly billed EBS for services under the Retainer Based billing option. But MRW immediately corrected this error as soon as it was made aware of it by waiving all Account Management Retainer bills after the first six payments that were made in 2002.

Although MRW waived all the outstanding Account Management Retainer bills, the parties could not agree on a resolution of certain Deliverables bills that MRW claimed were unpaid. During discussions in February or March of 2003, MRW, through James Watts indicated that EBS agreed to pay the remaining bills for Deliverables at that time. No payment was ever made by EBS and MRW made several more demands for payment. The trial evidence demonstrated through witness testimony and 5 separate invoices offered in evidence that the MRW sought payment for $30,445.00 from EBS. The bills were based on written estimates that MRW submitted to EBS after February of 2002 and which Zizza signed. The amount of the bills matched or were lower than the amounts stated in the estimates. At trial, EBS, through Zizza, disputed owing any of the $30,445.00. This dispute raised a credibility issue for the jury to resolve. Given, the jury’s verdict, it resolved the dispute in favor of EBS by rejecting MRWs quantum meruit counterclaim.

After the February or March 2003 discussions, the parties retained counsel. MRW was unsatisfied with EBS’s approach to the unpaid invoices and pursued a course of action that involved, on or about April 11, 2003, writing to Galaxy Internet Services (“Galaxy”), the company that hosted the website for the plaintiff, and requesting that Galaxy remove EBS’s website immediately and return all data to MRW.

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Cite This Page — Counsel Stack

Bluebook (online)
23 Mass. L. Rptr. 725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastern-building-services-corp-v-matzell-richard-watts-inc-masssuperct-2008.