Montello v. Smith

1992 Mass. App. Div. 244, 1992 Mass. App. Div. LEXIS 107
CourtMassachusetts District Court, Appellate Division
DecidedDecember 18, 1992
StatusPublished
Cited by3 cases

This text of 1992 Mass. App. Div. 244 (Montello v. Smith) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montello v. Smith, 1992 Mass. App. Div. 244, 1992 Mass. App. Div. LEXIS 107 (Mass. Ct. App. 1992).

Opinion

Coven, J.

This is an action in contract and tort to recover for the defendant-landlord’s breach of contract, misrepresentation and G.L.c. 93A unfair and deceptive practices in leasing commercial premises to the plaintiff-tenant.

The evidence summarized in both the report and trial judge’s findings, see Olofson v. Kilgallon, 362 Mass. 803, 805 (1973), indicates that plaintiff Anna M. Montello was an inexperienced business woman interested in opening a small restaurant. She responded to a newspaper advertisement for retail space which had been placed by defendant Donald Smith, who owned afour and one-half acre tract of land in the Town of Amesbury on which he operated a garden center and landscaping business.

[245]*245At the parties’ first meeting in August, 1986, the defendant indicated that he was in the process of completing the first phase of a twenty to forty unit mall to be called “Chain Bridge Shopper’s Village Mall” which he expected to complete by December, 1987. The defendant implied that he had obtained all permits necessary to complete the entire mall project. He represented that a rock ledge which obstructed public view of the mall would be removed before winter, and that the parking area would be repaved when construction began in the fall. The defendant advised the plaintiff that the six unit section constituting phase one, which was then under construction, would be completed by the end of the summer, and that three of the six units were available for rent.

On September 2,1986, the defendant informed the plaintiff that two of the three available units in phase one had been rented, and that several persons had expressed interest in the third unit being considered by the plaintiff.

The defendant further described his commercial project as the “flagship of all malls to be developed in the area, and assured the plaintiff that she could anticipate a substantial and continuing annual growth in a restaurant business in such mall. The defendant produced an architect’s comprehensive drawing of the completed mall which showed twenty-eight stores, extensive landscaping, lights, expanded parking areas, roads, and waiting areas and facilities to accommodate public transportation. Finally, the defendant informed the plaintiff that she would hold the exclusive food service rights in the entire new mall.

Approximately one month later, the parties executed a five year lease at a monthly rental of $988.50which granted the plaintiff the exclusive right to operate a restaurant in the mall.

The trial court made extensive findings of fact indicating that the plaintiff was fraudulently induced to lease the premises by the defendant’s knowingly false representations and promises that her lease was for exclusive restaurant rights in the entire new “Chain Bridge Shopper’s Village Mall.” Despite express and implied assurances that he was ready to begin the mall and to complete work by December, 1987, the defendant had in fact neither the ability nor the intent to undertake the mall project and had actually abandoned all plans for such commercial development long before his first meeting with the plaintiff. The defendant never secured or even applied for permits necessary to complete his “flagship mall,” and had obtained only a single six month permit to start work on the six units constituting “phase one.”

Moreover, the defendant had earlier informed the Amesbury Building Inspector that he was unable to complete even the first phase of the project, and that no more work would be done or permits sought. The court found that the two units the defendant identified as already leased had never been rented, and actually consisted of only falsely painted fronts behind which lay skeletal interiors. The purported “completion” work on these two units in fact ceased immediately after the plaintiff executed her lease. The only units ever rented or occupied on the defendant’s property were the unit leased to the plaintiff and the unit utilized by the defendant for his landscaping business.

The court also found that despite the defendant’s promises and the terms of the parties’ written lease, the defendant never removed the obstructing ledge, provided new roads, or repaved the parking lot and the road adjacent to the plaintiff’s unit.

The defendant closed her business and terminated the lease on December 27, 1987. The trial court determined that the plaintiff’s losses at the time of lease termination consisted of $39,500.00 in loans obtained to start the business of which the defendant was aware prior to lease execution, $19,800.00 in interest payments, $14,900.00 for unpaid obligations for services and $19,338.82 in net operating losses, less the proceeds of thepublic auction sale of the restaurant’s equipment. The courtfound that the plaintiff s actual damages totaled $91,338.00, and awarded treble damages pursuant to G.L.c. 93A § 11. Judgmentwas entered for the plaintiff in the amount of $274,114.00, plus $50,000.00 in attorney’s fees and $675.72 in costs.

[246]*246The defendant now claims to be aggrieved by the trial courf s denial of eight of his requests for rulings of law, and of his Dist./Mun. Cts. R Civ. P., Rule 59 motion for a new trial.

1. The defendant’s contention on his requests for rulings of law numbers 1,2,5 and 6 is that any statements made by him were not actionable misrepresentations, but were instead merely expressions of opinion of conditions to exist in the future, or of matters promissory in nature, too indefinite and imprecise to engender liability in tort. See generally, Saxon Theatre Corp. of Boston v. Sage, 347 Mass. 662 (1964); Moran v. Levin, 318 Mass. 770 (1946); Warren H. Bennett, Inc. v. Charlestown Sav. Bank, 3 Mass. App. Ct. 753 (1975). There was no error, however, in the denial of these requests which were inconsistent with the trial court’s proper findings of fact. See DiGesse v. Columbia Pontiac Co., 369 Mass. 99 (1975).

Whether a declaration constitutes an actionable misrepresentation is a question of fact, Coe v. Ware, 271 Mass. 570, 573 (1930), dependent upon the nature of the representation and the language used, the subject matter, the roles and relationships of the parties, the opportunity for investigation and reliance and all attendant circumstances. John A Frye Shoe Co. v. Williams, 312 Mass. 656, 663-665 (1942). In the instant case, there was ample evidence to support the courf s finding that the defendant made false, specific statements of his present intent and plans to construct the mall which were designed to induce the plaintiff to enter into a long-term commercial lease. As such statements misrepresented the actual intent of the defendant and were relied upon by the plaintiff to her financial detriment, they constituted actionable fraud. McEvoy Travel Bureau, Inc. v. Norton Co., 408 Mass. 704, 709 (1990); Barrett Assoc., Inc. v. Aronson, 346 Mass. 150, 152 (1964); RESTATEMENT (SECOND) OFTORTS §530 (1977).

2. The defendant’s oral misrepresentations were actionable even though not included in the final terms of the written lease executed by the parties. McEvoy Travel Bureau v. Norton Co., supra at 711-712. Defendant’s contrary requests for rulings numbers 7,8,9 and 10 based on the parol evidence rule were properly denied, as such rule is applicable only in the absence of fraud or mistake. See generally, Massachusetts Elec. Co. v. Pacific Nat’l Inv. Corp., 9 Mass. App. Ct.

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2009 Mass. App. Div. 22 (Mass. Dist. Ct., App. Div., 2009)
Davis v. Douglas
2008 Mass. App. Div. 249 (Mass. Dist. Ct., App. Div., 2008)
Montello v. Smith
1998 Mass. App. Div. 43 (Mass. Dist. Ct., App. Div., 1998)

Cite This Page — Counsel Stack

Bluebook (online)
1992 Mass. App. Div. 244, 1992 Mass. App. Div. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montello-v-smith-massdistctapp-1992.