Kumar v. Roth

19 Mass. L. Rptr. 172
CourtMassachusetts Superior Court
DecidedMarch 25, 2005
DocketNo. 043947
StatusPublished

This text of 19 Mass. L. Rptr. 172 (Kumar v. Roth) 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
Kumar v. Roth, 19 Mass. L. Rptr. 172 (Mass. Ct. App. 2005).

Opinion

Gershengorn, J.

This matter is before the court on the plaintiff, Anil Kumar’s (“Dr. Kumar”) motion to [173]*173dismiss. After oral argument, and based on all of the credible evidence, the court makes the following findings and rulings.

BACKGROUND

On May 18, 2004, the plaintiff, Dr. Kumar, alleges that he signed a written offer (the “offer”) to purchase a medical office, located in Unit 412 of 3 Woodland Road, Stoneham, MA (“Unit 412”) from the defendant, David Roth (“Dr. Roth”). Dr. Roth is a neurological surgeon who owned Unit 412 and operated his medical office out of the space.

The offer set no closing date and was, according to the document’s terms, contingent upon the following conditions:

(a) acceptable lease with Heath Diagnostics/Mel-rose-Wakefield Hospital
(b) acceptable lease with Dr. David Roth
(c) satisfactoiy inspection of premises

In addition, the Offer contained the following language:

NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE PURPOSE OF THIS DOCUMENT IS TO MEMORIALIZE CERTAIN BUSINESS POINTS. THE PARTIES MUTUALLY ACKNOWLEDGE THAT THEIR AGREEMENT IS QUALIFIED AND THAT THEY, THEREFORE, CONTEMPLATE THE DRAFTING AND EXECUTION OF A MORE DETAILED AGREEMENT. THEY INTEND TO BE BOUND ONLY BY THE EXECUTION OF SUCH AN AGREEMENT AND NOT BY THIS PRELIMINARY DOCUMENT. (All caps in original.)

The offer stated that the parties would execute a Purchase and Sale Agreement acceptable to both parties by May 31, 2004. The parties extended this date approximately five times. The final extension expired on September 30, 2004.

During the period between May 18, 2004, the date Drs. Kumar and Roth signed the document in question, and September 30, 2004, the final extension expiration date, Dr. Kumar took several steps to secure his purchase of Unit 412. Dr. Kumar alleges that Dr. Roth had knowledge of these steps and that during this period of time, Dr. Roth orally promised to sign a purchase and sale agreement. In reliance on these promises, Dr. Kumar performed the following acts: (1) Dr. Kumar applied and was approved for a mortgage with Central Cooperative Bank, Dr. Kumar paid $5,000 to “lock in” a favorable interest rate on July 16, 2004; (2) on August 24, 2004, Dr. Kumar arranged for an appraisal of the Unit to be conducted. Dr. Kumar alleges that he is obligated to pay $2,750 to Central Cooperative Bank for the appraisal.

On August 18, 2004, Dr. Kumar alleges that he delivered to Dr. Roth a “Standard Form Condominium Purchase and Sale Agreement” (the “Agreement”) together with a copy of a check for Seventy-nine Thousand Dollars ($79,000) made out to “Gary Robinson Escrow Account” to Dr. Roth. Gary Robinson is Dr. Roth’s attorney. Dr. Kumar had already signed this Agreement when it was delivered. However, Dr. Roth never signed this Agreement, nor was the check deposited into the escrow account. On August 24, 2004, Attorney Robinson sent a correspondence via facsimile requesting that Dr. Roth’s attorney contact him regarding the proposed Purchase and Sale Agreement. At some time after this correspondence, Dr. Kumar alleges that Dr. Roth orally assured him [Dr. Kumar] that he would execute the Agreement.

The Agreement was never signed, and after the final extension date expired, Dr. Kumar initiated the current action.

DISCUSSION

I. Rule 12(b)(6) Standard

Massachusetts Civil Procedure Rule 12(b)(6) permits the dismissal of a Complaint for a failure to state a claim upon which relief may be granted if “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, 97-98 (1977), quoting in part Conley v. Gibson, 355 U.S. 41, 45-46 (1957). To survive a motion to dismiss, the complainant need not advance the correct legal theory but merely must provide a “short and plain statement of the claim showing that the pleader is entitled to relief.” Whitinsville Plaza, Inc. v. Kotseas, 378 Mass. 85, 89 (1979), quoting Mass.R.Civ.P. 8(a)(1). In assessing a motion to dismiss, this court accepts as true all allegations in the complaint as well as any reasonable inferences drawn thereon. See General Motors Acceptance Corp. v. Abington Cas. Ins. Co., 413 Mass. 583, 584 (1992); Nader, 372 Mass at 98.

II. Breach of Contract

The plaintiff alleges breach of contract. In order to prevail on a breach of contract claim, the plaintiff must prove: [1] the parties had an agreement; [2] Dr. Kumar was ready, willing and able to perform; [3] Dr. Roth’s breach prevented Dr. Kumar from performing; [4] Dr. Kumar suffered damages as a result of the breach. Doyle v. Hasbro, Inc., 103 F.3d 186, 194 (1st Cir. 1996). In the present case, the plaintiff alleges that the offer executed by the parties contained an agreement, which was subsequently breached by Dr. Roth when he refused to sign the purchase and sale agreement. The plaintiff, however, fails to recognize that the Offer contained language denoting that it was merely an offer, and that the parties did not intend to be bound until the execution of a more formal document. This language was specifically endorsed by the Supreme Judicial Court, who noted “[i]f parties do not intend to be bound by a preliminary agreement until the execution of a more formal document they should employ [this language].”1 McCarthy v. Tobin, 429 Mass. 84, 88 n.3 (1999), citing McCarthy v. Tobin, 44 Mass.App.Ct. [174]*174274,279 n. 10 (1998) (emphasis added). Therefore, the offer was not an “agreement” as needed to maintain an action for breach of contract. Rather, it was a preliminary document.

III. Statute of Frauds

Defendant argues that the alleged oral assurances by Dr. Roth that he would sell Unit 412 to Dr. Kumar cannot be enforced because of the Statute of Frauds. The Statute of Frauds is codified at G.L.C. 259, §1 and provides, in pertinent part: “[n]o action shall be brought. . . Fourth, Upon a contract for the sale of lands, tenements or hereditaments or of any interest concerning them; . . . Unless the contract ... is in writing and signed by the party to be charged . . .” Id., Simon v. Simon, 35 Mass.App.Ct. 705, 709 n. 5 (1994) (emphasis added). Whether a writing satisfies the Statute of Frauds is a question of law. Schwanbeck v. Federal-Mogul Corp., 412 Mass. at 709, 709-10 (1992).

In the present case, the writing in question was clearly not meant to bind the parties, as discussed above. As such, the writing was not a contract, and therefore cannot serve to satisfy the Statute of Frauds. In the absence of a writing, the alleged oral assurances made by Dr. Roth for the sale of land cannot be enforced. G.L.C. 259, §1.

IV. Estoppel/Specific Performance

In response to the defendant’s Statute of Frauds defense, the plaintiff argues that because Dr. Kumar relied to his detriment on the oral promises made by Dr. Roth, he is estopped from raising Statute of Frauds as a defense. The issue of estoppel was discussed in Hickey v. Green,

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Related

Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Boyle v. Hasbro, Inc.
103 F.3d 186 (First Circuit, 1996)
Greenstein v. Flatley
474 N.E.2d 1130 (Massachusetts Appeals Court, 1985)
Whitinsville Plaza, Inc. v. Kotseas
390 N.E.2d 243 (Massachusetts Supreme Judicial Court, 1979)
Nessralla v. Peck
532 N.E.2d 685 (Massachusetts Supreme Judicial Court, 1989)
Hickey v. Green
442 N.E.2d 37 (Massachusetts Appeals Court, 1982)
Simon v. Simon
625 N.E.2d 564 (Massachusetts Appeals Court, 1994)
Cellucci v. Sun Oil Co.
320 N.E.2d 919 (Massachusetts Appeals Court, 1974)
General Motors Acceptance Corp. v. Abington Casualty Insurance
602 N.E.2d 1085 (Massachusetts Supreme Judicial Court, 1992)
Nader v. Citron
360 N.E.2d 870 (Massachusetts Supreme Judicial Court, 1977)
Andrews v. Charon
289 Mass. 1 (Massachusetts Supreme Judicial Court, 1935)
McCarthy v. Tobin
706 N.E.2d 629 (Massachusetts Supreme Judicial Court, 1999)
McCarthy v. Tobin
690 N.E.2d 460 (Massachusetts Appeals Court, 1998)

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19 Mass. L. Rptr. 172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kumar-v-roth-masssuperct-2005.