Kusmin v. Nastasi

4 Mass. L. Rptr. 49
CourtMassachusetts Superior Court
DecidedApril 24, 1995
DocketNo. CA 932517
StatusPublished
Cited by1 cases

This text of 4 Mass. L. Rptr. 49 (Kusmin v. Nastasi) 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
Kusmin v. Nastasi, 4 Mass. L. Rptr. 49 (Mass. Ct. App. 1995).

Opinion

Butler, J.

The plaintiffs, Phyllis and Murray Kusmin (the Kusmins), purchased a home in East Falmouth, Massachusetts, and signed a note secured by a mortgage in favor of the seller, Anthony Nastasi. This note and mortgage was subsequently assigned to the defendant, Bernice Nastasi. The Kusmins bring this action alleging that the defendant is bound by the terms of an oral agreement they made with Anthony Nastasi which released them from liability under the Note. The complaint2 seeks relief for breach of contract (Count I), promissory estoppel (Count II), fraudulent misrepresentation (Count III), and declaratory judgment (Count IV).3

The defendant moves for summary judgment pursuant to Mass.R.Civ.P. 56(c) on the ground that the alleged oral agreement is unenforceable under the statute of frauds. As an initial matter, the defendant asks this court to strike the affidavit of Anthony Nastasi filed in support of the Kusmins’ motion in opposition to the summary judgment motion. For the foregoing reason, the defendant’s motions are allowed.

BACKGROUND

For years, the Kusmins and the Nastasis were friends who lived on the same street in Westwood, Massachusetts. In the summer of 1987, Anthony Nastasi (Anthony) offered to sell the Kusmins a house he owned in East Falmouth, Massachusetts, because the Kusmins expressed a desire to spend more vacation time with their children. The Kusmins relied solely on Anthony’s representation concerning the house’s fair market value and agreed to buy it for $225,000.00.

The Kusmins did not finance the purchase through a commercial lending institution; instead, Anthony offered to take back a mortgage on the properly. At the closing, on November 13, 1987, the Kusmins paid Anthony $80,000.00: $45,000.00 in cash and $35,000.00 in checks. They signed the Note for $145,000.00, secured by a mortgage in Anthony’s favor. Title was transferred by way of a quitclaim deed showing a purchase price of $180,000.00— $45,000.00 less then what the Kusmins paid.

After the Kusmins took possession of the house, they spent approximately $38,000.00 remodelling the kitchen and most of the first floor. In 1988, the renovations ceased when the Kusmins began to experience health and financial problems. In October 1988, Mrs. Kusmin suffered a heart attack. In 1989, they were forced to sell the family business which was their primary source of income.

As a result of their financial uncertainty, the Kusmins could not make the payments on the Note. They discussed their situation with Anthony who agreed to cancel their obligation under the Note. In exchange, Anthony was to take back title to the house with all of the Kusmins’ improvements. The Kusmins moved all of their belongings out of the house and made their last payment to Anthony in September 1990. The house remained unoccupied for the next three years during which time the title of the house and responsibility for the house’s utilities remained ■with the Kusmins.

At the time Anthony sold the property to the Kusmins, he was still married to Bernice Nastasi (Bernice). However, in November 1988, Bernice took up residence in Las Vegas, Nevada. A year later she filed for a divorce. On April 3, 1992, a Nevada divorce judgment divided the marital assets between Anthony and Bernice and awarded the house in East Falmouth, Massachusetts to Bernice. The property, however, was in the Kusmins’ name. Therefore, on September 23, 1993, a Massachusetts probate court ordered Anthony to assign the Note and mortgage to Bernice.

Once she had possession of the Note, Bernice demanded it be paid in full. At this time, the Kusmins ordered an historical appraisal of the house and discovered that the value of the house at the time of purchase was $156,000.00 — $69,000.00 less than they paid for the house based on Anthony’s representation of the fair market value. The Kusmins then filed this action arguing that Bernice is bound by the oral agreement which released them from future obligation under the Note4 and her demand for full payment of the Note is a breach of that agreement. The Kusmins further allege that Bernice is liable for fraud because she knew of, participated in, and benefitted from Anthony’s misrepresentations of the fair market value at the sale. Bernice moves for summary judgment and argues that the allegedly oral agreement is unenforceable under the statute of frauds.

DISCUSSION

Before this court reaches a decision on Bernice’s motion for summary judgment, it first decides her motion to strike the affidavit of Anthony Nastasi which the Kusmins submit in support of their motion in opposition to the defendant’s motion for summary judgment.

[50]*50In O’Brien v. Analog Devices, Inc., 34 Mass.App.Ct. 905 (1994), the court held that “a party cannot create a material issue of fact by the expedient of contradicting by affidavit statements previously made under oath at a deposition.” Id. at 906 citing Perma Research & Dev. Corp. v. Singer Co., 410 F.2d 572, 578 (2d Cir. 1969); Radobenko v. Automated Equip. Corp., 520 F.2d 540, 544 (9th Cir. 1975). Anthony, however, is not a party to this action;5 yet, his actions are central to the plaintiffs’ case. There is no reason, therefore, that this rule should not apply in these circumstances.

On September 11, 1992, Anthony testified at a deposition. At that time, he made no reference to a oral agreement between him and the Kusmins. In fact, according to his deposition testimony, he still considered the Note overdue. He testified that he tried to collect payments from the Kusmins “every couple of weeks or so.” He also stated that he did not own the house and wanted the Kusmins “to sell the home and give [him] the difference of the money.” Anthony contradicts this deposition testimony in an affidavit filed in support of the Kusmins’ opposition to Bernice’s current motion for summary judgment. In an affidavit dated February 22, 1994, Anthony plainly states that there was an oral modification of the Note releasing the Kusmins from their obligation.

The facts presented in this affidavit are contradictory and are not the result of Anthony’s coming to possess newly acquired evidence. See O’Brien, supra at 906. At the time of his deposition, Anthony clearly knew whether there was an oral modification of the Note. Anthony had the opportunity to disclose the oral agreement at his deposition when he was asked whether he has tried to collect payment from the Kusmins. He failed to discuss the oral agreement at that time and his subsequent affidavit gives no reason for this failure. Maddy v. Vulcan Materials Co., 737 F.Supp. 1528, 1532 (1990).

The Kusmins’ presentation of this affidavit is, at the very least, suspect given the fact that they have failed to respond to interrogatories specifically requesting information concerning Anthony’s whereabouts. In short, Anthony’s affidavit is not worthy of consideration by the court and is stricken. The defendant’s motion for summary judgment is decided as follows.

Summary judgment shall be granted where there are no genuine issues as to any material fact in dispute and where the moving party is entitled to judgment as a matter of law. Cassesso v. Commissioner of Correction,

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Bluebook (online)
4 Mass. L. Rptr. 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kusmin-v-nastasi-masssuperct-1995.