Moran v. Gala

23 Mass. L. Rptr. 729
CourtMassachusetts Superior Court
DecidedApril 17, 2008
DocketNo. 0502164
StatusPublished

This text of 23 Mass. L. Rptr. 729 (Moran v. Gala) 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
Moran v. Gala, 23 Mass. L. Rptr. 729 (Mass. Ct. App. 2008).

Opinion

Fremont-Smith, Thayer, J.

In this case, the parties own neighboring parcels of land on Wildwood Street in Winchester. When, in 2002, the Galas sought to construct a driveway from Wildwood Street to the rear of their home, the Morans brought suit in the Land Court claiming a prescriptive right to that portion of the Gala property and obtained a preliminary injunction which prohibited the Galas from constructing the driveway, pendent lite. The Galas counterclaimed, alleging misrepresentation and violation of G.L.c. 93A. The Land Court, on March 4, 2005, entered summary judgment for the Galas, holding that the Morans were estopped from claiming a possessory right to that portion of Galas’ property. It severed and transferred Galas’ counterclaim to this Court. The Morans appealed to the Appeals Court which, in a detailed decision, affirmed the Land court.

The counterclaim was tried jury-waived in this Court on March 31 - April 2, 2008. Based on all of the credible evidence, the Court finds and rules as follows.

The gravamen of the Galas’ counterclaim is that Robert Moran, who represented the persons from whom the Galas purchased their property (the Stows) throughout the period leading to their real estate closing, took actions that led the Galas reasonably to believe that they would have clear title to all the land which they purchased.1

The Land Court, in ruling for the Galas in their motion for summary judgment, found as follows:

Moran, who asserts in this lawsuit ownership of the Galas’ record parcel, dealt with them repeatedly and extensively up to the point where they agreed to buy and then bought, in good faith and for full value, the Stowe/Moore property. Moran was indisputably aware of the full facts on which he now bases his adverse possession claim throughout the time he was dealing with the Galas. He never raised those facts of possession with the Galas. He even made a “proposal” in writing to the Galas to have them transfer to him and his wife the land he now claims he owns by possession, and yet he never once communicated his claim or any of the facts underlying them to the Galas, not even when they declined his “proposal” and then bought the house from Moran’s clients, blindly placing themselves in a position to be sued by the Morans in the instant case, as they now have been.
It is undisputed that Robert Moran, acting as attorney-in-fact under power of attorney, signed the Mechanic’s Lien Certificate, which clearly attests, on behalf of his clients, the sellers, that “there are no tenants, lessees or parties in possession of said premises other than _.” The Galas, for the benefit of whose title insurer the certificate was procured, reasonably relied upon this representation.2

Moran v. Gala, Misc. No. 266795 (Land Ct., Middlesex Jan. 6, 2005) (Piper, J.) (Order granting summary judgment of Galas p. 10-11). The Land Court went on to say:

To establish equitable estoppel, one must show a representation “intended to induce reliance on the part of a person to whom the representation is made.” Bongaards, 440 Mass. at 15. Moran should be estopped by the position communicated by the Mechanic’s Lien Certificate, which he executed on behalf of his clients as their attorney. He could be expected to argue that this certificate was addressed to, and intended to induce reliance by, First American, rather than the Galas. Although true, the court does not attribute to this distinction any legal significance so as to defeat the defense of estoppel. The record is clear that the certificate was supplied to induce the issuance of title insurance for the Galas and/or their purchase money mortgagee. The conveyance would have collapsed had the Galas been unable to secure title insurance. The practical effect of the Mechanic’s Lien Certificate was to facilitate the Galas’ ability to insure their title, and thus to enable them to purchase the property from Moore and Stowe. The statements contained in the Mechanic’s Lien Certificate were intended to induce reliance by the Galas, even if the statements were not, strictly speaking, representations made directly to the Galas by name.3

The Appeals Court, in Moran v. Gala, 66 Mass.App.Ct. 135, 139 (2006), after reviewing the [731]*731summary judgment record before the Land Court, quoted from Bongaards v. Millen, 440 Mass. 10, 15 (2003), as follows: “Circumstances that may give rise to an estoppel are (1) a representation intended to induce reliance on the part of a person to whom the representation is made; (2) an act or omission by that person in reasonable reliance on the representation; and (3) detriment as a consequence of the act or omission.” The Court continued (at 139-40):

The judge considered that the position and assertions of the Morans in the present lawsuit — that Robert and his predecessors in title possessed the disputed area of the Galas’ record parcel since 1942 — "squarely contradict" the position he took as counsel for and as a representative of the sellers in 1997. Although the Morans contest this conclusion, it is supported by undisputed facts, Throughout the period leading to the final closing, Robert took actions that would lead the Galas reasonably to believe that they would have title to all the land described first in the purchase and sale agreement, and then in the deed. Moreover, Robert’s proposed adjustment to the boundaries would reasonably be viewed as an acknowledgment of the boundaries as described in the Stowe and Moran deeds, and his desire to change the boundaries by a conveyance. Thus, even apart from the mechanic’s lien certificate, the Galas reasonably could rely on the description in the purchase and sale agreement and deed, documents prepared by Robert or under his direction, and Robert’s proposed lot adjustment, as an implicit representation by him that he was not asserting a claim contrary to the descriptions in the documents he prepared. At the very least his conduct was an implicit representation that, based on facts that Robert knew at the time (it is irrelevant whether he knew such facts might constitute a viable claim of adverse possession), Robert and his wife were making no claim and would make no claim to the Galas’ record title properly. Obviously, had the Galas any inkling that the Morans would make a claim, they would have not gone through with the purchase without some adjustment or release. Also obvious is the detriment to the Galas— the cost and trouble of this litigation, as well as the possible loss of a portion of their land.

The Court continued (at 140-41):

In their appeal, the Morans argue that summaiy judgment should not have entered as there were disputed material questions of fact. Robert argues that the Galas had already decided to purchase the property when he began to be involved in the transaction and therefore there was no reliance by them which led them to buy the property. At the least, he claims, whether they were induced to buy is a question of fact. What is here involved is not the inducement to enter into the purchase and sale agreement, but rather reliance on the implicit representations that Robert would not assert claims on his own and on his wife’s behalf contrary to the documents he prepared. See Colarusso v. Ragosa, 382 F.3d 51, 61 (1st Cir. 2004).

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Bluebook (online)
23 Mass. L. Rptr. 729, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moran-v-gala-masssuperct-2008.