Hurton v. Puorro

20 Mass. L. Rptr. 501
CourtMassachusetts Superior Court
DecidedFebruary 14, 2006
DocketNo. 011617
StatusPublished

This text of 20 Mass. L. Rptr. 501 (Hurton v. Puorro) 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
Hurton v. Puorro, 20 Mass. L. Rptr. 501 (Mass. Ct. App. 2006).

Opinion

Burnes, Nonnie S., J.

This is an action brought by the plaintiff, Thomas E. Hurton, Jr. (“Hurton”), as the owner of three Promissory Notes, against the maker of the notes, the defendant, Middlesex Deputy Sheriffs, Inc. (“Sheriffs, Inc.”), and the guarantors of the notes and owners of Sheriffs, Inc., defendants Fred Puorro (“Puorro”), and Gerald E. Breen (“Breen”). Hurton also seeks payment on the notes from the Sheriff of Middlesex County (the “Sheriff’), as well as the Commonwealth of Massachusetts (the “Commonwealth”). Defendant Sheriffs, Inc., as a third-party plaintiff asserts claims for breach of contract, unlawful taking, and violations of G.L.c. 93A and 42 U.S.C. §1983 against the third-party defendant, R. Bradford Bailey (“Bailey"), in his individual capacity, and/or as Sheriff of Middlesex County. The matter is before this court on motions for summary judgment of the Sheriff of Middlesex County, the Commonwealth, and Bailey, in his individual capacity, and in his official capacity as former Sheriff of Middlesex County.

For the reasons set forth below, the motions for summary judgment of the Sheriff of Middlesex County, the Commonwealth of Massachusetts, and R. Bradford Bailey, individually, and in his official capacity as Former Sheriff of Middlesex County, are ALLOWED.

BACKGROUND

At this summary judgment stage, the facts are reported in the light most favorable to the non-moving party. Anderson Street Associates v. City of Boston, 442 Mass. 812, 816 (2004), citing Augat, Inc. v. Liberty Mut Ins. Co., 410 Mass. 117, 120 (1991). The facts are largely undisputed in this case.

Bailey was appointed as Sheriff of Middlesex County in 1995. At the time, service of process was performed by three private entities, including Sheriffs, Inc. The offices were staffed by deputy Sheriffs, appointed by the Sheriff pursuant to G.L.c. 37, §3. In 1996, after consulting with legal counsel, Bailey, in his official capacity, completed a series of transactions in which the Middlesex County Sheriffs Office purchased Sherriffs, Inc.’s assets. In addition to the purchase agreement, Bailey signed two promissory notes. The first note, for the assets of the corporation, was for $183,724.88. The note was to be paid over sixty months at 7% interest. The second note was for an $80,000.00 cash loan from Sheriffs, Inc. to Sheriff Bailey, “to initially fund the Civil Process Division.” Both notes are dated May 23, 1996.

In order to obtain the funds to provide Sheriff Bailey with the $80,000.00 cash loan, Sheriffs, Inc. issued three promissory notes. The first note, dated January 29, 1996, is for $20,000.00; the second note, dated March 29, 1996, is for $20,000.00; and the third note, also dated March 29, 1996, is for $40,000.00. Sheriff Bailey was not a party to, nor a guarantor of these three notes. Hurton now holds these three notes, which were guaranteed by the owners of Sheriffs, Inc., Puorro and Breen.

Bailey knew that Sheriffs, Inc. had borrowed the funds necessary to make the cash loan. Bailey represented that he had consulted with the Attorney General’s Office, and that the purchase of the civil process offices was outside the ordinary appropriations process. Bailey has been an attorney, licensed to practice law in the Commonwealth since 1987. Bailey was aware that Puorro and Breen relied on his representations as to his legal authority to execute the notes.

Sheriff James DiPaola (“DiPaola”) took office in 1997 after defeating Bailey. DiPaola commenced a declaratory judgment action seeking a judgment that the sales agreement and notes between Sheriffs, Inc. and Bailey were void and unenforceable. The Superior Court ruled that they were in DiPaola v. Barrett and Middlesex Deputy Sheriffs, Inc., C.A. 97-4206 [12 [502]*502Mass. L. Rptr. 527], holding that Bailey, as Sheriff, had failed to comply with the statutory approval and appropriations process before executing the notes. The ruling was upheld by the Appeals Court, and further appellate review was denied. Neither Puorro, Breen, nor Bailey were parties to this first lawsuit. DiPaola stopped payment on the two notes. By the time Sheriff DiPaola stopped payment on the two notes, a total of $75,415.08 cash payments had been made to Sheriffs, Inc. over a fourteen-month period. Of this amount, $25,483.50 was paid towards the $80,000.00 loan note, and $50,931.58 was paid on the note for the assets of the corporation. When Sheriff DiPaola stopped payment on the two notes, Sheriffs, Inc. stopped payment on its three notes held by Hurton.

Hurton commenced this action against Sheriffs, Inc. and its owners, Puorro and Breen, seeking payment of the balance of $40,969.48 on the three notes held. Hurton later amended his Complaint to bring a direct claim against the Middlesex County Sheriff for “money had and received.” Sheriffs, Inc. brought a third-party action against Bailey, individually and/or as Sheriff of Middlesex County, alleging several claims in pursuit of the full payment of $263,724.28 under the two notes.

DISCUSSION Summary Judgment Standard

Summary judgment is appropriate where the “pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Highland Ins. Co. v. Aerovox, Inc., 424 Mass. 226, 232 (1997), citing Mass.R.Civ.P. 56(c). In a case such as this, where the opposing party will have the burden of proof at trial, the moving party is entitled to summary judgment if he can demonstrate by reference to these materials, “unmet by countervailing materials, that the party opposing the motion has no reasonable expectation of proving an essential element of that party’s case.” Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991).

Hurton’s Claims

Hurton asserts claims for “Money had and received” against the Sheriff and the Commonwealth, arising out of the loan made to Sheriffs, Inc. for $80,000.00, which in turn was loaned to Sheriff Bailey. The government of Middlesex County was abolished as of July 11, 1997 pursuant to G.L.c. 34B, §1. Pursuant to the statute, all of its functions, duties, responsibilities, liabilities and debts were transferred to the Commonwealth. G.L.c. 34B, §§4, 5. As a claim against the Commonwealth, the appropriate statute of limitations on Hurton’s claim is three years “after the cause of action accrues.” G.L.c. 260, §3A.

“A cause of action for breach of contract accrues at the time of the breach.” Campanella & Cardi Const. Co. v. Com., 351 Mass. 184, 185 (1966), citing Boston Tow Boat Co. v. Medford Nat’l Bank, 232 Mass. 38, 41 (1919). In this case, the breach occurred on August 12, 1997 when Sheriff DiPaola stopped payment on the notes. Accordingly, the statute of limitations expired three years later, on August 12, 2000. Hurton did not file his Complaint until April 2001, and the claims are therefore untimely.

Hurton’s claim is also barred, as a matter of law, based on the holding of the Appeals Court in Sheriff of Middlesex County v. Barrett, 57 Mass.App.Ct. 1116, 2003 WL 1799731, *1. Hurton’s claim against the Commonwealth in this action is derivative of Sheriffs, Inc.’s claim to collect on the notes. That is to say, Hurton’s claim against the Sheriff and the Commonwealth is based on the loan to Sheriffs, Inc.

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20 Mass. L. Rptr. 501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hurton-v-puorro-masssuperct-2006.