Ilacqua v. Ilacqua

24 Mass. L. Rptr. 85
CourtMassachusetts Superior Court
DecidedApril 4, 2008
DocketNo.061461BLS2
StatusPublished

This text of 24 Mass. L. Rptr. 85 (Ilacqua v. Ilacqua) 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
Ilacqua v. Ilacqua, 24 Mass. L. Rptr. 85 (Mass. Ct. App. 2008).

Opinion

Fabricant, Judith, J.

INTRODUCTION

This action presents an intra-family dispute regarding ownership interests in the family taxi business. The plaintiff, Antonella llacqua, seeks recovery, for herself and her minor daughters, from her father-in-law and brother-in-law, based on ownership interests she contends her late husband, Steven llacqua, held at the time of his death, as well as her own claimed ownership interest and that of one daughter. She also asserts claims against two attorneys who have provided representation to various members of the family. The defendants contend that under agreements executed by the plaintiff and Steven llacqua, they and their daughter held no beneficial interest, but instead held legal ownership only as nominees or straws for [86]*86the benefit of Anthony Ilacqua, Senior. Before the Court are motions of all defendants for summary judgment, along with motions of the plaintiff to postpone consideration of the summary judgment motions pending further discovery pursuant to Mass.R.Civ.P. 56(f). For the reasons that will be explained, the Rule 56(f) motions will be denied, and the summary judgment motions will be allowed.

BACKGROUND

The evidentiary record before the Court is voluminous and complex. The Court has examined it carefully. That examination reveals directly conflicting evidence on few if any points of relevance to the issues presented by the present motions. What appears, rather, is evidence of essentially undisputed facts from which the parties argue different inferences. For purposes of summary judgment, the Court must draw all reasonable inferences in favor of the opposing party. See Simplex Technologies, Inc. v. Liberty Mat. Ins. Co., 429 Mass. 196, 197 (1999). The question in this case is what inferences are reasonable. The Court will present the facts in such a way as to identify the areas of conflict.

Family history and family relationships are central to the story. Defendant Anthony Ilacqua, Senior, known as Tony, is the patriarch. His wife is Marion Ilacqua. Malcolm Portnoy is Tony’s long-time lawyer. Tony had two sons, defendant Anthony Ilacqua, Junior (known as Anthony), bom in 1964, and Steven Ilacqua, born in 1965.1 Anthony married Joanne Crisafulli in (1988). In 1994, Steven married Joanne’s sister, Antonella Crisafulli, the plaintiff in this case. Steven and Antonella had two daughters, Victoria Rose Ilacqua, bom in 1997, and Stephanie Ilacqua, born in 2000. Steven committed suicide on December 31, 2000.

Tony has been in the taxi business since his youth. Sometime prior to the mid-1980s, he incorporated Tudor Cab, Inc., and operated his business through that entity from a location on Tudor Street in South Boston. His two sons joined him in the business as teenagers, and continued working in it thereafter, Anthony to the present and Steven until his death. Over a period of decades, the business acquired ownership of a number of taxi medallions.2

In the mid-1980s, Tony and Attorney Portnoy devised a plan, as described in Tony’s affidavit, “to manage the liability exposure presented by ownership of numerous medallions and to insure that adequate insurance could be obtained.” The plan, again as described in Tony’s affidavit, was that “numerous companies would be incorporated and none would hold more than three medallions ... The stock in each company would be issued to a family member, subject, in all instances, to nominee agreements . . . under which I [Tony] would retain beneficial ownership and control of the Companies.” Portnoy’s deposition testimony provides a similar description; the plan was to “try and protect Tony’s assets from being involved in case there was a disastrous loss in one of the corporations which was not covered by sufficient insurance, and that by setting them up in different corporations, it was one step that would help to segregate and protect them, but that it was always Tony’s intention to own them and control them.”

According to Tony’s deposition testimony, he discussed the plan with “everybody in the family,” including both his sons, his wife, and his mother and sister, and explained that the plan would involve the use of their names. All of them agreed to the plan. He took each family member, including both sons, Antonella, and Joanne, to Portnoy’s office, where Portnoy explained the plan to them in his presence. Portnoy, Marion, and Anthony all confirm that account.3

To implement that plan, over the next approximately fifteen years Portnoy formed a number of separate corporations, each of which would hold one, two or three medallions. In each instance, a family member was designated as sole officer and director of the corporation, and all stock in the corporation was issued to that family member.4 Tudor Taxi then transferred one or more medallions to that corporation, or the corporation acquired one or more medallions from other sources, with consideration paid by Tony, Tudor, or another affiliated entity. Papers were filed with the Secretary of State’s Office reflecting establishment of the corporations, and annual reports were filed thereafter. Portnoy prepared the incorporation papers and reports. In each instance the document bears a signature purporting to be that of the appropriate corporate officer. Who actually signed is unclear. According to Tony’s and Anthony’s deposition testimony, the various family members had an understanding that any of them, or Portnoy or Orlov, could sign any of their names. Tax returns were filed in the name of each corporation, reflecting ownership in accord with the corporate documents. The returns were prepared by accountant Jason Orlov, who provided accounting services for the business regularly over the years.

In each instance, Tony and the designated family member entered into an agreement in essentially.the same form. Defendants refer to these as “nominee” or “straw” agreements; the Court will use that nomenclature where convenient, without intending thereby to adopt any characterization. Illustrative of the agreements is one entered into by Joanne Crisafulli (then Anthony’s fiancee), dated January 11, 1988. That agreement recites that Tony is the sole stockholder of Tudor, that Joanne is engaged to Anthony, who is an employee of Tudor and “derives economic benefit therefrom,” that Tony “desires to acquire5 additional assets of said Tudor Cab, Inc. to wit: Hackney Carriage Medallions to other corporations to minimize the effect of not being able to obtain sufficient insurance coverage to protect said assets,” and that “it is to the mutual advantage of both parties that the stock in said trans[87]*87feree corporation not be in the name of said Anthony J. Ilacqua.” The document goes on to set forth the agreement of the parties to it (that is, in this instance, Tony and Joanne) that “a new corporation organized for the purpose of receiving said asset namely Waterfront Taxi, Inc., although listed to the name of said Joanne Crisafulli as owner of the capital sock in said corporation is, in fact, that of Anthony J. Ilacqua who is the true and lawful owner of said stock.” The document goes on to state Joanne’s agreement that “I shall, at any time requested, sign any and all documents necessary as well as do all things necessary to transfer said stock into the name of said Anthony J. Ilacqua. I further empower said Anthony J. Ilacqua as my agent to execute all documents necessary in my name on my behalf to accomplish the same.”

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Bluebook (online)
24 Mass. L. Rptr. 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ilacqua-v-ilacqua-masssuperct-2008.