MICHAEL GERHARDT & Another v. ROBERT S. BURR & Others.

Massachusetts Appeals Court·Decided April 8, 2026·No. 25-P-0523·Unpublished

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

25-P-523

MICHAEL GERHARDT & another 1

vs.

ROBERT S. BURR & others. 2

MEMORANDUM AND ORDER PURSUANT TO RULE 23.0

The plaintiffs, Michael Gerhardt and Lauren Seaverns,

worked for a real estate development company called College

Street Partners LLC, which was owned and managed by the

defendant, Robert Burr. In 2009, Burr entered into written

"participation agreements" with Gerhardt and Seaverns that gave

them economic interests in a construction project referred to as

"140 Commonwealth Avenue-Danvers," which they helped to develop.

In 2011, Burr entered into participation agreements with

Gerhardt and Seaverns that gave them economic interests in

another construction project, "Hawthorne Hill." Gerhardt and Seaverns left their employment with College Street Partners in 2013, and Burr stopped making distributions to them under the participation agreements shortly thereafter.

In 2021, the plaintiffs filed suit in Superior Court against Burr, College Street Partners, and two other limited liability companies associated with the two construction projects. After the parties cross-moved for summary judgment, a judge allowed the plaintiffs' motion for partial summary judgment as to Burr's liability for breach of contract. 3 The judge concluded that "it is undisputed that Burr stopped distributing profits to Gerhardt and Seaverns once their employment with College Street Partners ended in 2013, Burr's contractual obligation did not end when Gerhardt and Seaverns stopped working for College Street, and this claim is not barred by waiver or estoppel." The matter proceeded to a bench trial on damages. In his written findings and conclusions, the judge ordered Burr to pay (1) Gerhardt $1,030,744 in damages plus prejudgment interest, and (2) Seaverns $575,758 in damages plus prejudgment interest. The judge denied Burr's "emergency motio

n" for reconsideration of the judge's summary judgment ruling.

On appeal, Burr 4 contends that the plaintiffs' action should have been dismissed as time-barred under the six-year statute of limitations for contract claims. He contends that the judge erred in granting partial summary judgment as to liability because Burr's testimony established his estoppel and waiver defenses and the judge purportedly "ignored" Burr's laches defense. Burr also contends that, at the damages trial, the judge misapplied the parol evidence rule, excluded key evidence about reliance, and miscalculated the plaintiffs' damages and prejudgment interest. Lastly, Burr claims that the judge erred by declining to reconsider his summary judgment decision. We affirm the judge's decisions in all respects.

Discussion. 1. Partial summary judgment. a. Standard of review. "We review a decision on a motion for summary judgment de novo." Conservation Comm'n of Norton v. Pesa, 488 Mass. 325, 330 (2021) (Pesa). "Summary judgment is appropriate where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law." Barbetti v. Stempniewicz, 490 Mass. 98, 107 (2022), quoting Pesa, supra. See Mass. R. Civ. P. 56 (c), as amended, 436 Mass. 1404 (2002).

b. Statute of limitations. Burr stopped making distributions to Gerhardt and Seaverns for the two projects in 2013. The plaintiffs filed suit in 2021. General Laws c. 260, § 1, provides that the statute of limitations for "[a]ctions upon contracts under seal" is twenty years. General Laws c. 260, § 2, provides that the statute of limitations for most contract actions not "limited by section one" is six years. In his summary judgment decision, the judge concluded that, because the participation agreements are sealed instruments, the twenty- year limitations period in G. L. c. 260, § 1, applies, and the plaintiffs' action is not time-barred.

Massachusetts is "one of the minority of American jurisdictions that have carried over significant elements of the sealed contract doctrine to the Twenty-first Century." Knott v. Racicot, 442 Mass. 314, 320 (2004). Although some aspects of the sealed contract doctrine have "eroded" in the Commonwealth, id., quoting Nalbandian v. Hanson Restaurant & Lounge, Inc., 369 Mass. 150, 155 (1975), the twenty-year statute of limitations continues to apply to "[a]ctions upon contracts under seal." G. L. c. 260, § 1. See, e.g., Premier Capital, LLC v. KMZ, Inc., 464 Mass. 467, 469, 474 (2013); JB Mtge. Co. v. Ring, 90 Mass. App. Ct. 93, 95 (2016).

Burr contends that the participation agreements are not "contracts under seal" because they do not say so in the

"Recitals" section of the agreements. We disagree. Each of the agreements states that it is "EXECUTED under seal," directly above the parties' signatures. That statement gives each agreement the legal effect of a sealed instrument under G. L. c. 4, § 9A. See Nalbandian, 369 Mass. at 151 n.2; Lawrence H. Oppenheim Co. v. Bloom, 325 Mass. 301, 302 (1950); Glendale Coal Co. v. Nesson, 312 Mass. 293, 294 (1942). See also Knott, 442 Mass. at 319-320, citing G. L. c. 4, § 9A ("Over time, simply the words 'under seal' or a similar phrase appearing in a mass-produced, form contract became sufficient to invest that document with the privileged status of a sealed instrument"). There is no requirement that the words "under seal" appear in a section titled "Recitals." In Glendale Coal Co., supra, the Supreme Judicial Court stated that the words "Witness hand and seal" before the plaintiff's signature gave his release "the legal effect of a sealed instrument." In Boston v. Roxbury Action Program, Inc., 68 Mass. App. Ct. 468, 473 n.10 (2007), we held that the defendant company's statement, just above its agent's signature, that it "caused this instrument to be signed and sealed in its name" sufficed "to create a sealed instrument."

Nor are we persuaded by Burr's argument that the participation agreements are not sealed instruments because the page marked "Schedule A" in each agreement does not also state

that the agreement is "under seal." As discussed, the governing statute as construed by the case law requires only a single statement that an instrument is sealed or executed under seal in order to give it "the legal effect of a sealed instrument." G. L. c. 4, § 9A. See Nalbandian, 369 Mass. at 155. This phrase does not need to be repeated each time the parties manifest their acceptance of the contract's terms through their signatures or initials. Further, as the judge ruled, each Schedule A is part of the participation agreement and has no independent meaning or legal effect. Accordingly, the schedules are not themselves "instruments" to be analyzed separately from the rest of the participation agreements for the purpose of determining whether the twenty-year statute of limitations under G. L. c. 260, § 1, applies. See G. L. c. 4, § 9A.

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MICHAEL GERHARDT & Another v. ROBERT S. BURR & Others., (Mass. Ct. App. 2026).

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