Equi v. Licari

1985 Mass. App. Div. 181, 1985 Mass. App. Div. LEXIS 77
CourtMassachusetts District Court, Appellate Division
DecidedSeptember 13, 1985
StatusPublished

This text of 1985 Mass. App. Div. 181 (Equi v. Licari) 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
Equi v. Licari, 1985 Mass. App. Div. 181, 1985 Mass. App. Div. LEXIS 77 (Mass. Ct. App. 1985).

Opinion

Ruma, J.

This is an action in contract to recover a total balance of $18,000.00 due on three promissory notes payable to plaintiff Frank R. Equi in his individual capacity, and executed by the plaintiff and defendants Arthur Licari and John Markos collectively, as trustees of the Ipswich Bay Realty

Trust.

The reported evidence discloses that the notes in question contained the following terms:

Face Value Date Executed Date Due

$10,000.00 September 15, 1973 March 15, 1974

5,000.00 November 2, 1973 May 2, 1974

3,000.00 March 12, 1974 June 10, 1974

Written demand for payment of these notes was made by the plaintiff on September 10, 1984. The present suit was instituted shortly thereafter upon the defendant’s failure to make payment or otherwise respond to the plaintiffs demand.

The defendants submitted a Dist./Mun. Cts. R. Civ. P., Rule 56 motion for summaryjudgment on the grounds that this action was barred by the six year statute of limitations set forth in G.L.c. 260, §2.

In opposition to said motion, the plaintiff filed an affidavit contending that the defendants were estopped from asserting a limitations defense because they had deceived and induced the plaintiff into foregoing any action for payment of the notes. The plaintiffs affidavit in opposition to the motion for summaryjudgment specifically averred, inter alia, (1) that the defendants made continuing, oral representations between 1974 and 1984 that the notes “would be paid in full, together with accrued interest, once all necessary and [182]*182unavoidable expenses for the repair and upkeep of the properties owned by the Trust were completed;” (2) that acknowledgments or written assurances or payment were forwarded to the plaintiff in the form of annual, financial statements for the Trust in which the notes were continued as outstanding liabilities; (3) that these reports were prepared by one George S. Tsoutsouras, an accountant engaged by the defendants to audit and prepare financial statements on behalf of the trust; and (4) that the plaintiff resided out-of-state and thus depended on the defendants, as his business partners, to keep him informed of the financial status of their joint undertaking.

In support of their Rule 56 motion, the defendants submitted personal affidavits in which they denied making any promises or giving any assurances with respect to payment of the notes. The defendants further averred that they did not verify or sign financial statements prepared by Mr. Tsoutsouras; that such statements were prepared at the behest and in accordance with the instructions of the plaintiff; and that such statements were based exclusively on figures provided by the plaintiff. An affidavit of George S. Tsoutsouras was also filed in support of the defendants’ summaryjudgment motion. Tsoutsouas stated that the financial statements were designed for the internal use of the management of the Trust and constituted management’s representations. Tsoutsouras further averred that he neither audited the Trust, nor verified the representations made, but “dealt mainly with Frank R. Bqui and his private accountant in compiling the information provided in these statements.”

The trial court allowed the defendant’s Dist./Mun. Cts. R. Civ. P., Rule 56 motion for summary judgment, ruling that demand was not made and suit was not commenced within the time allowed by the applicable statute of limitations. The plaintiff is before the Appellate Division on a charge of error in the trial court’s disposition or defendant’s Rule 56 motion.

1. It is a well established tenent of procedural policy in this Commonwealth that summaryjudgment pursuant to Dist./Mun. Cts. R. Civ. P., Rule 56 is an “excellent device to make possible the prompt disposition of controversies on their merits without a trial, if in essence there is no real dispute as to the salient facts or if only a question of law is involved.” Community Nat’l. Bank v. Dawes, 369 Mass. 550, 553 (1976). See also Davidson v. Commonwealth, 8 Mass. App. Ct. 541, 545 (1979); Cassesso v. Commissioner of Correction,, 390 Mass. 419, 422 (1983). Actions on promissory notes are particularly suited to summary disposition because determinative issues as to execution and balance due are most commonly resolved pretrial. United States Trust Co. of N.Y. v. Herriott, 10 Mass. App. Ct. 297, 320 (1980).

Despite the salutary purpose of summary judgment, however, Rule 56 neither encourages nor permits a “trial by affidavits.” Henshaw v. Cabeceiras, 14 Mass. App. Ct. 225, 229 (1983), quoting from Norwood Morris Plan Co. v. McCarthy, 295 Mass. 597, 603 (1936). A motion for summaryjudgment must be denied if a genuine, material issue of fact exists which requires a trial on the merits. A Rule 56 motion compels a trial justice “to look beyond the formal allegations of fact in the pleadings and to determine whether further exploration of the facts is necessary.” Quincy Mut. Fire Ins. Co. v. Abernathy, 393 Mass. 81, 87 (1984). In so doing, facts alleged in the pleadings, affidavits and other supporting materials, and all inferences to be drawn therefrom, must be viewed in the light most favorable to the party opposing the summary judgment motion. Coveney v. President & Treasurer of College of Holy Cross, 388 Mass. 16, 17 (1983); Salem Building Supply Co. v. J.B.L. Construction Co., 10 Mass. App. Ctr. 360, 365 (1980) and cases cited.

2. No factual controversy surrounds the operative dates of the promissory [183]*183notes in question, or the expiration of the controlling statutory period of limitations herein. Pursuant to G.L.c. 260, §2, an action upon the promissory notes executed in this case must be commenced within six years after the cause of action accrues.2 Mendes v. Roche, 317 Mass. 312, 324-325 (1945); National Shawmut Bank of Boston v. Fitzpatrick, 256 Mass. 125, 131 (1926). General Laws c. 106, §3-122(1)(a) provides that “a cause of action against a maker .. . accrues in the case of a time instrument on the day after maturity.” Krasnow v. Krasnow, 253 Mass. 528 (1925). It is clear that the plaintiff s claim for balances due on the three 1974 notes in question was barred as amatter of law by the statute of limitations.

3. It is equally evident that the six year limitations period was not tolled, and the plaintiffs cause of action not revived, by any acknowledgment of the defendants’ continuing debt. Pursant to G.L.c. 260, §13, evidence must be advanced of an acknowledgement or new promise to pay a debt “made by, or contained in, a writing signed by the party chargable thereby” in order to overcome the statutory time bar to the commencement of suit. Neither the defendants’ alleged oral promises to make payment on the notes, nor the unsigned financial statements in question, constituted a written, signed acknowledgement of a continuing financial obligation within the purview of G.L.c. 260, §13. See, e.g., Winchester v. Sibley, 132 Mass. 273 (1883); Roy v. Gravel, 23 Mass. App. Dec. 155, 157-158 (1961).

4. Once a limitations bar is effectively praised or pleaded, the burden is upon the plaintiff either to establish that the action has been seasonably commenced, or to advance facts sufficient to take the case out of the statute of limitations. Horning v.

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Bluebook (online)
1985 Mass. App. Div. 181, 1985 Mass. App. Div. LEXIS 77, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equi-v-licari-massdistctapp-1985.