Gossels v. Fleet National Bank

2005 Mass. App. Div. 144, 59 U.C.C. Rep. Serv. 2d (West) 1164, 2005 Mass. App. Div. LEXIS 49
CourtMassachusetts District Court, Appellate Division
DecidedNovember 8, 2005
StatusPublished

This text of 2005 Mass. App. Div. 144 (Gossels v. Fleet National Bank) 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
Gossels v. Fleet National Bank, 2005 Mass. App. Div. 144, 59 U.C.C. Rep. Serv. 2d (West) 1164, 2005 Mass. App. Div. LEXIS 49 (Mass. Ct. App. 2005).

Opinion

Coffey, J.

The plaintiff in the case, C. Peter R. Gossels (Gossels), filed a complaint against the defendant, Fleet National Bank (Fleet) on October 4, 2001. Count I of the complaint alleged that Fleet breached its agreement to act in good faith to collect the euro proceeds from a check that it accepted from Gossels. Count II of the complaint alleged that Fleet converted to its own account the euros that belonged to Gossels, and Count III of the complaint alleged that Fleet violated G.L.c. 93A, §§2, 9.

Gossels subsequently filed a motion to amend the complaint and add a fourth count, which was allowed. Count IV of the complaint alleged that Fleet owed Gos-sels the sum of 84,971.19 euros that it received from a German bank on account of a check that Gossels had given to Fleet.

After trial, the trial judge found for Gossels on Count I of the complaint. The trial judge characterized Fleet’s conduct as negligent misrepresentation and not breach of an agreement to act in good faith. Gossels was awarded damages in the amount of $6,861.68 and interest in the amount of $2,021.29 for a total award of $8,882.97. The Court found for Fleet on Counts II, III and IV of the complaint.

The trial judge declined to rule on Gossels’ requests for rulings of law, stating that Gossels had filed an excessive number of requests and had failed to conform them to Mass. R. Civ. R, Rule 64A(a).

Gossels has appealed the judgment for Fleet on Counts II, III and IV of the complaint. In addition, he alleges that the prejudgment interest was incorrectly calculated and that the trial judge abused her discretion when she did not rule on Gossels’ requests for rulings of law.

The facts of this matter are essentially as follows.1 On October 15,1999, Gossels brought a check in the amount of 85,071.19 euros to the international teller at Fleet. Gossels had received the check from the German government as a repara[145]*145tions payment for an apartment that the Nazis took from Gossels’ family during World War II. The check was drawn on Dresdner Bank in Germany.

Gossels asked the teller at Fleet to collect the total amount of the check in euros. Gossels did not request that the check be converted into dollars, and the teller failed to inform Gossels that Fleet could only pay the amount of the check in dollars and not euros because it does not maintain any accounts in euros. If Gos-sels had known that Fleet intended to give him dollars instead of euros, he would have declined to give the check to Fleet and would have taken it to another bank.

When Gossels asked the teller whether he should endorse the check, the teller told him that no endorsement was required because the check was drawn on a foreign bank. The teller handed a pre-printed receipt to Gossels after she accepted the check from him. The receipt provided that the check was accepted for either “provisional credit” or for “collection only,” but neither option was checked on the receipt. If Fleet had given Gossels provisional credit for his euros check, the funds in dollars would have been credited to his account on or shortly after October 15, 1999. At that point, Gossels believed that Fleet would pay euros to him in exchange for the check that was denominated in euros. Fleet did not disclose that it intended to present dollars, nor did it explain the terms of the exchange rate.

In a transaction such as this one involving foreign currency, Fleet acts as the collecting bank. The process requires Fleet to send the check to its Global Collection Department, which sends the check and a collection letter to Fleet’s foreign correspondent bank. In this case, Fleet’s foreign correspondent bank was Deut-sche Bank in Germany. Deutsche Bank collected the funds as Fleet’s main bank contact in Germany by logging the check into its system and mailing the check to the Dresdner Bank in Germany, which was the foreign bank on which the check was drawn. Upon its receipt of the check, Dresdner Bank debited the funds from the appropriate account and sent 85,071.19 euros to Deutsche Bank, which credited 84,971.19 euros2 to Fleet’s account in that bank.

Fleet maintains a manual for foreign check collection practices. The manual states that the Fleet teller is obligated to inform the customer that it takes four to six weeks before a customer receives payment on a foreign check. The manual also requires the teller to inform the customer of the date of determination of the exchange rate and that the exchange rate is based on the date of Fleet’s receipt of the funds from the foreign bank. When Fleet receives funds from a foreign bank for a check drawn on that bank, Fleet does not pay the exchange rate in that foreign country because Fleet does not know the exchange rate in that country on a daily basis. Fleet failed to provide Gossels with this information.

On November 11, 1999, Gossels received a notice from Fleet stating that the euros check had been returned unpaid because it did not bear an endorsement. Upon receipt of the notice, Gossels walked to the Fleet branch at 75 State Street and told the manager that the international teller had instructed Gossels not to endorse the check. The manager asked Gossels to endorse the check, credited his account for $38.25, which represented lost interest, and waived the $30.00 fee that Fleet had charged Gossels for failing to endorse the check.

On December 15,1999, Gossels received notice from Fleet that it had credited his account for $81,754.77, which was the equivalent of 84,971.19 euros. The same number of euros would have been worth $88,616.45 based on the exchange rate on October 15,1999, which represents a decrease of $6,861.68 or 7.7 percent. This was the first time that Fleet informed Gossels that he was receiving dollars instead of euros. At that point, Gossels called Fleet and said that he had wanted euros and not dollars. He was informed that Fleet pays only dollars and not euros.

[146]*146One of Gossels’ main arguments on appeal is that the trial judge erred in finding for Fleet on Gossels’ claim under G.L.c. 93A, §§2, 9. Section 2 of G.L.c. 93A prohibits “unfair or deceptive acts or practices in the conduct of any trade or commerce. ...” Under G.L.c. 93A, §9(1), a person who is injured by another’s use or employment of an unlawful act or practice under section two may bring an action for damages. As a private individual engaged in a commercial transaction on a nonprofessional basis, Gossels brought his claim under section 9 of G.L.c. 93A and not section 11. See Gargano & Assocs., P. C. v. John Swider & Assocs., 55 Mass. App. Ct. 256, 262 (2002) (distinction between a business person and a private individual in actions under G.L.c. 93A).

It is well established that “a practice or act [is] unfair under G.L.c. 93A, §2, if it is (1) within the penumbra of a common law, statutory, or other established concept of unfairness; (2) immoral, unethical, oppressive, or unscrupulous; or (3) causes substantial injury to competitors or other business people.” Morrison v. Toys “R” Us, Inc., 441 Mass. 451, 457 (2004). Moreover, ‘“the purpose of G.L.c. 93A is to improve the commercial relationship between consumers and business persons and to encourage more equitable behavior in the marketplace.’” Id., quoting Poznik v. Massachusetts Med. Professional Ins. Ass’n, 417 Mass. 48, 53 (1994).

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Poznik v. Massachusetts Medical Professional Ins. Ass'n
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Gargano & Associates, P.C. v. Swider
770 N.E.2d 506 (Massachusetts Appeals Court, 2002)
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2005 Mass. App. Div. 144, 59 U.C.C. Rep. Serv. 2d (West) 1164, 2005 Mass. App. Div. LEXIS 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gossels-v-fleet-national-bank-massdistctapp-2005.