KEHN FINE HOME BUILDING, INC. v. SHANMUGAM MUTHIAN MICHAEL KEHN, Third-Party

CourtMassachusetts Appeals Court
DecidedMay 15, 2023
Docket22-P-0014
StatusUnpublished

This text of KEHN FINE HOME BUILDING, INC. v. SHANMUGAM MUTHIAN MICHAEL KEHN, Third-Party (KEHN FINE HOME BUILDING, INC. v. SHANMUGAM MUTHIAN MICHAEL KEHN, Third-Party) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KEHN FINE HOME BUILDING, INC. v. SHANMUGAM MUTHIAN MICHAEL KEHN, Third-Party, (Mass. Ct. App. 2023).

Opinion

NOTICE: Summary decisions issued by the Appeals Court pursuant to M.A.C. Rule 23.0, as appearing in 97 Mass. App. Ct. 1017 (2020) (formerly known as rule 1:28, as amended by 73 Mass. App. Ct. 1001 [2009]), are primarily directed to the parties and, therefore, may not fully address the facts of the case or the panel's decisional rationale. Moreover, such decisions are not circulated to the entire court and, therefore, represent only the views of the panel that decided the case. A summary decision pursuant to rule 23.0 or rule 1:28 issued after February 25, 2008, may be cited for its persuasive value but, because of the limitations noted above, not as binding precedent. See Chace v. Curran, 71 Mass. App. Ct. 258, 260 n.4 (2008).

COMMONWEALTH OF MASSACHUSETTS

APPEALS COURT

22-P-14

KEHN FINE HOME BUILDING, INC.

vs.

SHANMUGAM MUTHIAN; MICHAEL KEHN, third-party defendant.

MEMORANDUM AND ORDER PURSUANT TO RULE 23.0

In 2016, defendant Shanmugam Muthian hired the plaintiff,

Kehn Fine Home Building, Inc. (KFHB), to undertake a major

renovation project at his home in Marblehead. After the project

was substantially but not totally completed, Muthian refused to

pay KFHB for a large outstanding invoice and fired the company.

KFHB brought the current collection action alleging breach of

contract and related theories. Muthian counterclaimed and

brought a third-party action against Kehn's principal, Michael

Kehn (Kehn). After a nine-day jury-waived trial, a Superior

Court judge ruled largely in favor of KFHB and Kehn

(collectively, the Kehn parties), explaining his decision in

comprehensive findings and rulings. On July 12, 2021, two

judgments entered that had the net effect of requiring that

Muthian pay the Kehn parties approximately $100,000 in damages (including prejudgment interest). On August 18, 2021, another

judgment entered awarding attorney's fees to Muthian.1 After the

judge denied motions for reconsideration filed by each side,2

Muthian appealed, and the Kehn parties filed a limited cross

1 On July 12, 2021, the judge entered final judgment on KFHB's claims, which required Muthian to pay KFHB $111,397.44 in damages ($90,544.53 in contractual damages, which included prejudgment interest from the date of the breach until the judgment at the contractual rate of eighteen percent per year, and $20,852.91 in quantum meruit damages, which included prejudgment interest from the date of the complaint until the judgment at the statutory rate of twelve percent per year). That same day, the judge entered a separate final judgment on Muthian's counterclaims and third-party claims that required KFHB to pay $11,376.45 in damages (including prejudgment interest), with Kehn jointly and severally liable to pay $2,687.74 of those damages (including prejudgment interest). A third final judgment entered on August 18, 2021, requiring that the Kehn parties pay Muthian $2,500 in attorney's fees (strictly speaking, the third judgment, is phrased as awarding attorney's fees to the "plaintiff," although from the context it appears the judge intended the award in favor of Muthian, who is the plaintiff-in-counterclaim/third-party claim). The parties make no argument about the third judgment on appeal. The issuance of three separate judgments added unnecessary confusion to this case. See Pantazis v. Mack Trucks, Inc., 92 Mass. App. Ct. 477, 478 n.4 (2017) ("We repeat our admonition that, unless [Mass. R. Civ. P. 54 (b)] is expressly invoked, there should never be more than one document identified as a final judgment in a civil case").

2 On July 30, 2021, each side filed a motion for reconsideration. The judge denied them on August 10, 2021. Meanwhile, Muthian had served, but not yet filed, what was styled as an amended version of his motion for reconsideration. The day after the initial version was denied, Muthian filed the amended version. Treating the amended version as a "second" motion for reconsideration, the judge denied it on August 20, 2021.

2 appeal.3 We affirm the liability finding on KFHB's breach of

contract claim, but conclude that the damages award on that

claim was incorrect in one respect. We also reverse so much of

the judgment as entered in favor of KFHB on its quantum meruit

claim. We otherwise affirm.

A full recounting of the facts is unnecessary, and we refer

the reader to the extraordinarily detailed factual findings that

the trial judge issued. Those findings exhibit the thoughtful,

careful, and balanced approach that the judge took with respect

to the testimony he heard from the at least seventeen witnesses.

On appeal, Muthian does not challenge the judge's subsidiary

findings as clearly erroneous (with the limited exceptions

discussed below), and, in any event, those findings appear well

supported by the trial record. Nor is the thrust of Muthian's

argument that the judge applied the wrong legal principles.

Rather, he mainly argues that the judge misapplied the correct

law to the facts found. For the most part, we disagree.

1. Contract claims. The judge found that Muthian

materially breached his contract with KFHB in January of 2018

when he refused to pay more than a nominal amount of what KFHB

was owed, and it is self-evident that Muthian's subsequent

3 Notwithstanding some ambiguities in the respective notices of appeal, we treat the appeals as encompassing all three judgments and the two orders denying the parties' motions for reconsideration described in notes 1 and 2, supra.

3 firing of KFHB from the job also was a material breach.4 That

conclusion is well supported and correct. We discern no error

in the judge's rejection of Muthian's argument that his actions

were justified by a prior material breach by KFHB. To be sure,

the project at that point had not been completed within the

nine-month time frame set forth in the contract, but for reasons

the judge thoroughly explained, the contract read as a whole

does not support Muthian's view that the nine-month provision of

the contract established an unforgiving drop dead date.5 In

addition, the judge found that KFHB bore little responsibility

for causing delay,6 and that, overall, Kehn was "exceptionally

4 To be sure, KFHB made mistakes in invoicing. After making certain adjustments to account for mistakes that Muthian had pointed out, KFHB on January 16, 2018, sent Muthian an invoice for over $81,000 for the then completed work. As the judge found, the adjusted invoice was very close to the amount that Muthian eventually was determined to owe on the contract after the nine-day trial. However, in response to KFHB's invoice, Muthian offered to pay at most only $15,000, and even that offer was subject to KFHB's agreeing to certain new conditions such as forbearance from filing a mechanic's lien. KFHB still kept working to obtain an occupancy permit for Muthian and as soon as it succeeded in that task, Muthian fired KFHB from the job.

5 Muthian's argument is based on his taking out of context certain isolated contractual language that on its face speaks of the nine-month time frame in absolutist terms. However, as the judge pointed out, both directly before and after that language is other language that absolves KFHB of delays outside its control.

6 The judge found that the largest sources of delay were outside KFHB's control and responsibility. For example, the project unexpectedly needed approval from two local zoning bodies

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Bluebook (online)
KEHN FINE HOME BUILDING, INC. v. SHANMUGAM MUTHIAN MICHAEL KEHN, Third-Party, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kehn-fine-home-building-inc-v-shanmugam-muthian-michael-kehn-massappct-2023.