Humbert v. Dworman

17 Mass. L. Rptr. 625
CourtMassachusetts Superior Court
DecidedMay 5, 2004
DocketNo. 032217A
StatusPublished
Cited by1 cases

This text of 17 Mass. L. Rptr. 625 (Humbert v. Dworman) 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
Humbert v. Dworman, 17 Mass. L. Rptr. 625 (Mass. Ct. App. 2004).

Opinion

Fecteau, J.

On November 17, 2003, the plaintiffs, John and Martha Humbert, filed a complaint seeking to declare as void a transfer of property to the defendants. Count I alleges breach of contract in the defendants’ failure to pay taxes and perform repairs to the property as set forth in the written agreements. Count II asserts failure of consideration for the defendants’ acquisition of the property. Count III alleges that the defendants breached the implied covenant of good faith and fair dealing, by failing to pay taxes and perform repairs to the property, and by failing to record all of the deeds to the property. Count IV alleges that the defendants’ conduct in this transaction constituted unfair or deceptive practices under G.L.c. 93A. Count V asserts that the defendants engaged in fraud through their material representations to the plaintiffs regarding the terms of the property transfer. Count VI asserts that the defendants fraudulently conveyed the property in violation of G.L.c. 109A.

BACKGROUND

On May 1, 2002, plaintiff John Humbert, as trustee of the Ninety-Three Grand Street Really Trust (“93 Grand Trust”), entered into a Purchase and Sale Agreement (“P&S”) to sell land and buildings at 93 and 95 Grand Street, Worcester, Massachusetts (the “Property”), to Nancy S. Dworman, Trustee of the GTH Trust (“GTH”). On the closing date, October 21, 2002, the parties named above entered into a Transfer Agreement that modified the terms of the P&S. The Transfer Agreement required the seller to execute quitclaim deeds to the Property, to be held in escrow for a 120-day period. At any time during that 120-day period, the buyer was entitled to record the deeds and take title to the Property but was under no obligation to do so. The seller would retain title to the Property in the event that the buyer did not record the deeds. Under the Transfer Agreement, upon recording the deeds to the Property, the buyer was obligated to perform repairs and to pay taxes owed on the Property in response to an order against the plaintiff by the City of Worcester.

As part of the overall transaction, the parties made arrangements to transfer encumbrances on the Property. Prior to the closing, Grand Street Mortgage Investors Trust (“GSMIT”) was the holder of 2 notes and accompanying mortgages on the Property. Plaintiff Martha Humbert was the beneficiary of GSMIT, and Ronald Kimball was the trustee. On the day of closing, October 21, 2002, Kimball assigned the notes and accompanying mortgages covering the Property to Marc Greenberg, Trustee of the Grand Street Realty Trust (“GSRTj, the brother of the defendant Nancy Dworman.

Shortly thereafter, as the 93 Grand Trust was in default under the notes and mortgages, GSRT was entitled to commence foreclosure proceedings, and purchased the Property at a foreclosure sale on December 12, 2002. At a subsequent closing on February 11, 2003, GSRT obtained title to three of the four parcels comprising the Property, opting not to take title to the fourth parcel. As the defendant buyer, Nancy Dworman, never exercised her right under the Transfer Agreement to record the deeds held in escrow during the 120-day period, 93 Grand Trust retained title to one of the four parcels. Thus, in accordance with the terms of the Transfer Agreement, the defendant did not pay any back taxes or perform repairs on the property. Marc Greenberg subsequently conveyed two of three parcels it obtained through foreclosure to Crompton Mill House, LLC, and the third parcel to Grand Street Parkway, LLC, entities controlled by Matthew Dworman, the son of Nancy and Ralph Dworman. Two of the parcels were later conveyed to Sion Mills, Ltd.

This matter is before the court on the defendants’ motion for judgment on the pleadings pursuant to Mass.R.Civ.P. 12(c), seeking dismissal of all counts.

DISCUSSION

A defendants’ rule 12(c) motion for judgment on the pleadings is treated as a motion to dismiss that argues the complaint fails to state a claim upon which relief can be granted. Ritchie v. Dept of State Police, 60 Mass.App.Ct. 655, 659 (2004). When evaluating the sufficiency of a complaint pursuant to Mass.R.Civ.P. 12(b)(6), the court must accept as true the allegations of the complaint, as well as any reasonable inferences to be drawn from them in the plaintiffs favor. Fairney v. Savogran Co., 422 Mass. 469, 470 (1996); Eyal v. Helen Broadcasting Corp., 411 Mass. 426, 429 (1991). “[The] complaint should not be dismissed for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Nader v. Citron, 372 Mass. 96, 98 (1977), quoting Conley v. Gibson, 355 U.S. 41, 45-46 (1957). In evaluating a rule 12(b)(6) motion, courts may consider allegations in the complaint, items appearing in the record of the case and exhibits attached to the complaint. Schaer v. Brandeis Univ., 432 Mass. 474, 477 (2000).

Count I of the amended complaint alleges that the defendants’ failure to pay tax arrearages or perform repairs after taking title to the property amounted to a breach of the written agreements. They also allege that defendants’ failure to record and take possession of one of the four parcels comprising the property amounted to a breach of the agreements. The defendants argue that because they did not record the deeds within the 120-day period specified in the Transfer Agreement, none of these obligations were triggered.

On the facts alleged in Count I, the plaintiffs have not stated a claim for which relief may be granted. The [627]*627complaint does not reference any section of the Transfer Agreement or P&S that obligates the defendants to pay taxes, perform repairs or take title to the property, in the event that the defendant chooses not to record title to the Properly. The Transfer Agreement states that the buyer “shall be entitled . . .” to record the deed, and “shall be under no obligation to record the deed and take title to the Premises.” The plaintiffs cannot now assign to the agreements the meaning that they believe it has. See Schaer, 432 Mass, at 479 (breach of contract claim dismissed where it was not supported by the language of the agreement). Even accepting the plaintiffs’ allegations as true, Count I does not allege a claim for which relief may be granted.

Count II asserts that the defendants failed to provide consideration in exchange for the transfer of the Property. The defendants argue that the P&S and the Transfer Agreement terminated because the property transfer outlined in those documents never occurred. The plaintiffs can prove no set of facts that entitles them to relief on this count. Nader, 372 Mass, at 98. The defendants obtained title to the Property through the foreclosure sale, rather than the P&S and Transfer Agreement. The Transfer Agreement provides that if the Buyer decides not to record the deeds, “the PSA and the Transfer Agreement shall be terminated and [sic] no further force or effect.” As the deeds were never recorded, the defendants were not obligated to provide the stated consideration. Accepting the plaintiffs’ assertions as true, Count II does not allege a claim for which relief may be granted.

Count III alleges that the defendants’ conduct violated the implied covenant of good faith and fair dealing. Every contract implies good faith and fair dealing between the parties to it. Anthony’s Pier Four, Inc. v. HBC Assoc., 411 Mass. 451, 471 (1991).

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Bluebook (online)
17 Mass. L. Rptr. 625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/humbert-v-dworman-masssuperct-2004.