Ecclesiastes 3:1, Inc. v. Cambridge Savings Bank

407 N.E.2d 1318, 10 Mass. App. Ct. 377, 1980 Mass. App. LEXIS 1280
CourtMassachusetts Appeals Court
DecidedAugust 7, 1980
StatusPublished
Cited by5 cases

This text of 407 N.E.2d 1318 (Ecclesiastes 3:1, Inc. v. Cambridge Savings Bank) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ecclesiastes 3:1, Inc. v. Cambridge Savings Bank, 407 N.E.2d 1318, 10 Mass. App. Ct. 377, 1980 Mass. App. LEXIS 1280 (Mass. Ct. App. 1980).

Opinion

Greaney, J.

By two separate actions in the Land Court, which were consolidated for hearing and disposition, the plaintiff sought: (a) an order (G. L. c. 237, §§ 1 and 5, as amended by St. 1973, c. 1114, § 227) for possession of certain premises on Forest Street in Cambridge against the defendants Martin B. and Herbert S. Hoffman, who claimed paramount title to the property as grantees under a foreclosure deed from the Cambridge Savings Bank (bank); and (b) a declaration (G. L. c. 231A, § 1) that it held an unencumbered freehold or an estate of fee simple in the premises by reason of its acquisition at a sheriff’s sale of the lessee’s interest in the unexpired term of a purported 100-year lease.3

Forest Realty Trust (trust) acquired the premises on October 15, 1969. Forest Street Housing, Inc. (corporation), was formed on November 20, 1970. The trust and the corporation executed a notice of lease (recorded on December 4, 1970) which stated that the premises were subject to a “lease ... for a term of 100 years commencing November 20, 1970.” By instrument dated January 4, 1971, and recorded, the corporation subordinated its rights in the “lease” to a mortgage given by the trust to David Zussman and Sidney Cohen. On January 12, 1972, the trust mortgaged the property to the Cambridge Savings Bank. On the same date, two subordination agreements were executed by the bank and the parties to the notice of lease. In the first agreement (which was recorded), the trust’s interest in the “lease” was subordinated to the mortgage, and the corporation assented to the subordination. In the other agreement (which was not recorded) the corporation’s interest in the “lease” was subordinated to the bank’s mortgage. By in[379]*379strument recorded on May 1, 1972, a tenant at the Forest Street premises attached all the corporation’s “right, title and interest” in the real estate. In December, 1974, the trust gave a mortgage to the Hoffmans which was duly recorded. By certificate dated April 28, 1975, and subsequently recorded, the Hoffmans made an entry on the premises for purposes of foreclosing their mortgage. By an unrecorded “indenture” dated May 2, 1975, the corporation “grant[ed] and surrender[ed]” all of its interest in the property to the Hoff-mans. In June, 1975, a judgment was obtained in the tenant’s suit against the corporation and a levy made on the execution. On August 6, 1975, the tenant’s attorney, together with a second lawyer, formed Ecclesiastes 3:1, Inc. (plaintiff). At a sheriff’s sale held to satisfy the tenant’s judgment, the plaintiff purchased the corporation’s interest in the property for a stated price of $2,632.65.4 On March 3, 1977, the bank, under the power of sale contained in its mortgage, sold the property to the Hoffmans for $1,208,000. This foreclosure deed was subsequently recorded on March 29, 1977.

Both the plaintiff and the defendants moved for summary judgment. Mass.R.Civ.P. 56(a) and (b), 365 Mass. 824 (1974). The affidavits and materials submitted by the parties with the motions contained the foregoing chronology. In addition, the defendants submitted affidavits from the principals of the trust and the corporation, and their attorney, which stated that the 100-year lease never existed, that the notice of lease was not intended to constitute the lease, and that the notice was recorded to hold “the matter of rent control on the property ... in place pending resolution of whether a cooperative development [for the property] was possible.”5 The [380]*380plaintiff submitted various documents from rent control proceedings where the corporation represented itself to the Cambridge rent control board as the owner of the premises and the lessee of a 100-year lease.

On these submissions, a judge of the Land Court ruled that “no lease as such was ever executed between [the trust] and [the corporation]”; that “the actual purpose for recording [pursuant to G. L. c. 183, § 4] the notice of lease . . . was to avoid the operation of the Cambridge rent control laws on the Forest Street apartments”; that “the notice of lease ... is not in itself a lease”; that the corporation “had no title in the premises upon which [a creditor] could levy, [as a result of which] the plaintiff acquired no interest in the premises as purchasers at the . . . sheriff’s sale”; that the plaintiff was “on notice that a mortgage to the [bank] predated [the] attachment and that the purported lease had been sought to be subordinated to the mortgage [thus creating] a duty to inquire further”; and that the plaintiff cannot “take advantage of an obvious technical error in the subordination agreement to the detriment of major creditors of . . . [the] trust.” Based on these rulings the judge allowed the defendants’ motion and entered judgments determining that the plaintiff had no title to the premises and that the Hoffmans were rightfully in possession. We affirm the judgments.

1. The plaintiff moved to strike various portions of the defendants’ affidavits on the basis that they contained material which would be inadmissible at a trial. See Smith & Zobel, Rules Practice § 56.6 (1977). The judge properly denied the motion. The statements in the affidavits by the principals of the trust and the corporation and the attorney for both entities that a lease never existed were statements of fact. The assertions that no consideration had been paid by the corporation for the notice of lease, that the notice was not intended as a substitute for the lease, and that the corporation was not intended at any time to be a tenant or owner of the property (but only a development agent) were properly received. The intention of the parties [381]*381was a question of fact to be considered by the judge on all the circumstances surrounding the transaction. Jacobson v. Jacobson, 334 Mass. 658, 661 (1956). Robert Indus., Inc. v. Spence, 362 Mass. 751, 753-754 (1973). A person “is competent to testify as to his own intent” and in a rule 56 proceeding he may submit an “affidavit [which] shows [what] he did not intend.” Commonwealth Bank & Trust Co. v. Plotkin, 371 Mass. 218, 221 (1976). On this aspect of the motions, the plaintiff was obligated to show that triable issues of fact existed on the question of intent. Compare Noyes v. Quincy Mut. Fire Ins. Co., 7 Mass. App. Ct. 723, 726-727 (1979). It failed in this regard. See A. John Cohen Ins. Agency, Inc. v. Middlesex Ins. Co., 8 Mass. App. Ct. 178, 182-183 (1979); Hahn v. Sargent, 523 F.2d 461, 468 (1st Cir. 1975), cert. denied, 425 U.S. 904 (1976). Nor did the existence of the notice of lease raise a parol evidence problem with regard to the assertions that a lease never existed. “[T]he defendants attempt not to vary or contradict [the] terms [of an instrument] but, rather, to challenge its very existence. In such a case the parol evidence rule is not applicable.” Porreca v. Gaglione, 358 Mass. 365, 368-369 (1970). Likewise, it was not improper for the judge to consider the material in the affidavits concerning the meaning and effect of the inartfully drawn subordination agreement that was recorded. The subordination was sufficiently ambiguous to justify its explanation by extrinsic proof. Ryan v. Stavros, 348 Mass. 251, 259-260 (1964), and cases cited. Siegel v. Terminal Realty Corp., 350 Mass. 779, 780 (1966). See also Allen v. Mutual Acceptance Corp., 350 Mass.

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Cite This Page — Counsel Stack

Bluebook (online)
407 N.E.2d 1318, 10 Mass. App. Ct. 377, 1980 Mass. App. LEXIS 1280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ecclesiastes-31-inc-v-cambridge-savings-bank-massappct-1980.