Kurker v. Shoestring Properties Ltd. Partnership

864 N.E.2d 24, 68 Mass. App. Ct. 644, 2007 Mass. App. LEXIS 389
CourtMassachusetts Appeals Court
DecidedApril 12, 2007
DocketNo. 06-P-161
StatusPublished
Cited by3 cases

This text of 864 N.E.2d 24 (Kurker v. Shoestring Properties Ltd. Partnership) 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
Kurker v. Shoestring Properties Ltd. Partnership, 864 N.E.2d 24, 68 Mass. App. Ct. 644, 2007 Mass. App. LEXIS 389 (Mass. Ct. App. 2007).

Opinion

Mills, J.

The plaintiff, Wayne Kurker, sought specific performance of either a final offer to purchase (final OTP) or a subsequent purchase and sale agreement concerning land in Hyannis used as a marina. After a seven-day trial, jury waived, a Superior Court judge found that the final OTP contained all [645]*645material terms of an agreement for the sale, and that the final OTP reflected the intention of the parties to be bound by their agreement. However, the judge went on to state that the final OTP was subject to the execution of a purchase and sale agreement, which, though executed by the parties, was held in escrow, thereby defeating the buyer’s right to specific performance and other remedies. Judgment entered accordingly, and the parties filed cross appeals. We conclude that the final OTP is enforceable and that the plaintiff is entitled to specific performance of that agreement.

1. Background. We recite this narrative of the negotiations and transactional details. The facts are essentially based upon the judge’s warranted findings. The defendant Stuart A. Bomstein is the principal officer and sole shareholder of the defendant Shoestring Properties Corporation (corporation), which in turn is the corporate general partner of the defendant Shoestring Properties Limited Partnership (partnership). In 1995, Bomstein, through the partnership, acquired property in Hyannis, consisting of Parcel A, containing the Dockside Restaurant (restaurant); Parcel B, containing a marina (marina); and an undeveloped parcel to the west of the restaurant (west parcel). The restaurant stands on a peak above Hyannis’s inner harbor, and “[bjecause of its immediacy to the harbor and its angle to the outer bay, the [restaurant] bestows uncommon vistas of seascape.” The marina consists of boat slips, with an adjoining asphalt parking area that recedes to a hill and then ascends a coastal bank2 directly below the plateau occupied by the restaurant.

In 2001, Bomstein desired to sell all three parcels and knew that one Kelleher had an interest in the restaurant, and that the plaintiff, Kurker (who owned another marina across the bay), had an interest in purchasing Bomstein’s marina. Bomstein contacted Kelleher, who agreed to purchase the west parcel and Parcel A for $2.5 million, and Kelleher promptly engaged counsel to draft the transaction documents. At about the same time, Bomstein discussed with Kurker a proposal for the sale to him of the marina, including its piers, slips, and the parking area portion of Parcel B, for a sum of $2 million. At this time [646]*646Bomstein was not offering to sell the entirety of Parcel B, and was not negotiating to sell the hill. Kurker expressed interest in purchasing the hill. Though initially Bomstein was not willing to include the hill in the sale, he agreed to sell a portion of it after further negotiations.

On January 11, 2002, Kurker and Bomstein met with Robert Gatewood, administrator of the Barnstable conservation commission (conservation commission) and discussed a proposed expansion of the marina’s operations on Parcel B, including construction of a building partially on the asphalt and partially on the hill. Kurker described a 320 square foot building containing a laundry, offices, and restrooms, partially on the parking lot and partially on the coastal bank. After this meeting, Bomstein and Kurker visited Parcel B, at which time Kurker offered to pay full price for the property if it included the whole hillside where he could erect a larger building for rental space, an oil recovery room, toilets, showers, patios, and an area for outside recreation. Bomstein refused to sell more of the hill than had been previously offered, namely, the part that would enable Kurker to build only the previously described 320 square foot building.

Also on January 11, 2002, Kurker submitted a written $2 million offer for Parcel B up to within seven and one-half feet of the restaurant property. Under the heading “Offer to Purchase Real Estate” appears the following: “This is a legal binding contact [rte]. If not understood, seek competent advice.” The following paragraph appears at the bottom of the first page:

“(a) If Seller does not fulfill Seller’s obligations under this Agreement, said Agreement shall be enforceable both at law and in equity (inclusive of specific performance), (b) If Buyer does not fulfill its obligations under this offer, the deposit, (l)(a) mentioned above, shall become Seller’s property as liquidated damages without recourse to either party.”

Bomstein never accepted the $2 million offer and negotiations stalled. Then, toward the end of February, 2002, Bomstein called Kurker and explained that he had been receiving offers for Parcel B, and that he was “looking out for Kurker like a [647]*647brother.” Kurker again emphasized to Bomstein his need to generate revenue through a building on the coastal bank. Responding, Bomstein warned that building on the bank would involve the construction of expensive retaining walls. After the February phone call, at a meeting between Bomstein and Kurker at Bomstein’s office, Bomstein’s son, Aaron, appeared and overheard Kurker mention his need for a “bigger” building.

On March 5, 2002, Kurker sent a facsimile to Bomstein that consisted of a cover sheet and sketch. The cover sheet stated:

“You said you are looking out for me like a brother and I appreciate that. If I were to let you squeeze me out of the land I need to build a building in I would lose any potential to break even or make a profit (unless you were to reduce the price accordingly).”

The sketch showed a seven and one-half foot setback from the restaurant property and a blackened area, below the setback and above the parking lot, covering land which generally represents the area on which Kurker proposed to construct a 2,225 square foot building.

Meanwhile, Bomstein and Kelleher were negotiating the agreement for Kelleher’s purchase of Parcel A and the undeveloped west parcel. Kelleher had by now learned of Kurker’s interest in purchasing Parcel B and wanted to work out terms between Kurker and himself for their “coexistence.” Although he had no objection to Kurker’s construction of a building on Parcel B, Kelleher wanted land to the east for his plan to expand the restaurant. Kelleher proposed that he would take some land to the east, and Kurker would take more frontage on School Street where he could construct the building. In Kelleher’s correspondence with Bomstein over Kurker’s purchase of Parcel B, Kelleher sent along a sketch that depicted a building near School Street outside of the parcel’s grassy area. Bomstein sent that sketch on to Kurker.

On March 23, 2002, Bomstein (through the partnership) and Kelleher and his wife executed a purchase and sale agreement for Parcel A and the west parcel. The agreement called for a closing date of May 15, 2002, and included Kelleher’s right to terminate the agreement by notification to Bomstein on or before April 30, [648]*6482002, of his failure to obtain financing. The agreement also addressed the need for easements benefiting and burdening Parcel A. According to the agreement, Bomstein would provide a plan by April 1, 2002, depicting various items, including easements for water lines, sewer lines, sign posts and the view.3 Meanwhile, Bomstein and Kurker engaged in a “give and take . . .

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Cite This Page — Counsel Stack

Bluebook (online)
864 N.E.2d 24, 68 Mass. App. Ct. 644, 2007 Mass. App. LEXIS 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kurker-v-shoestring-properties-ltd-partnership-massappct-2007.