Nalbandian v. Hanson Restaurant & Lounge, Inc.

338 N.E.2d 335, 369 Mass. 150, 1975 Mass. LEXIS 788
CourtMassachusetts Supreme Judicial Court
DecidedDecember 3, 1975
StatusPublished
Cited by18 cases

This text of 338 N.E.2d 335 (Nalbandian v. Hanson Restaurant & Lounge, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nalbandian v. Hanson Restaurant & Lounge, Inc., 338 N.E.2d 335, 369 Mass. 150, 1975 Mass. LEXIS 788 (Mass. 1975).

Opinion

Quirico, J.

This case was commenced on March 2, 1973, by a bill in equity seeking a decree ordering the specific performance of a written agreement to sell a certain parcel of real estate owned by the defendant, a corporation, and located in Hanson, in this Commonwealth. 1 The agreement was signed under seal by the *151 plaintiff as the buyer and by one Len St. Jean as the seller.* 2 The defendant’s name does not appear in the agreement, and there is nothing in the agreement to indicate that St. Jean was acting as agent for the defendant.

The defendant filed a motion for summary judgment in its favor on the basis of the pleadings and of the plaintiff’s admission of certain facts pursuant to a notice under G. L. c. 231, § 69, and the motion was allowed by a judge of the Superior Court. Mass. R. Civ. P. 12, 56, 365 Mass. 754, 824 (1974). The case is before us on the plaintiff’s appeal from the judgment entered pursuant to the allowance of the motion therefor. The appeal was originally entered in the Appeals Court and was thereafter removed by us to this court for direct appellate review. G. L. c. 211A, § 10(A), inserted by St. 1972, c. 740, § 1.

The trial judge ruled correctly on the basis of the applicable law in effect on the date he ordered the entry of summary judgment for the defendant. However, because we are persuaded that the law as thus applied should be changed, the judgment is to be vacated and further proceedings are to be had in the case consistent with this opinion.

We summarize certain additional relevant facts which are apparently not disputed. The real estate in question was formerly owned by Leonard St. Jean and Eleanor St. Jean, and on May 12, 1971, they conveyed it to the defendant. Leonard St. Jean is presumably the same person who, under the name of Len St. Jean, on Janu *152 ary 8, 1973, entered into written agreement to sell the same real estate to the plaintiff. The plaintiff paid a broker acting for St. Jean the sum of $1,200 toward the agreed purchase price of $32,000. St. Jean did not disclose to the plaintiff that title to the real estate was in the defendant.

To the extent that the summary judgment was based on the insufficiency of the allegations in the plaintiff’s bill to entitle him to prevail, the plaintiff contends that we must consider several allegations made by him, notwithstanding their denial by the defendant in its answer. These allegations are: (a) that his purchase and sale agreement was made with “the defendant corporation acting by Lennie St. Jean its President who represented that he had full authority to sell said real estate,” (b) that “St. Jean is the owner of two-thirds or more of the stock issued and outstanding of the defendant corporation,” and (c) that the “defendant corporation acting by its President Lennie St. Jean, refuses to complete the transaction as agreed and repudiates the agreement by denying its validity.”

The defendant’s answer included as an appendix thereto a copy of the written agreement signed by the plaintiff and St. Jean. The name of the defendant does not appear on the face of the agreement. The answer also included the statements that “it [the defendant] is not required to fulfill an unauthorized agreement made by another; that it was not a party to the agreement . . . [and that] the writing purports to be a sealed instrument and the same cannot be asserted against one not a party thereto.

On August 9, 1974, 3 the defendant filed a motion for the entry of summary judgment in its favor for the same basic reasons stated previously in its answer, viz., that the agreement sought to be enforced was under seal, that the *153 defendant was not a party thereto, and that therefore the agreement was not enforceable against it. The judge allowed the motion by the following legend which he indorsed thereon: “After hearing ... it appears to the court that there is no genuine issue as to a material fact and that the defendant, moving party, is entitled to judgment as a matter of law. Even assuming that the defendant authorized its president, St. Jean, to execute the purchase and sale agreement . . . which is the issue of fact claimed to exist, the court rules that defendant must prevail on the basis of the legal principles set forth in Seretto v. Schell, 247 Mass. 173, 176 (1923), and Exchange Realty Company v. Bines, 302 Mass. 93, 98-99 (1939), and cases cited therein. The motion is allowed.”

The Seretto and Exchange Realty Co. cases are but two of the many in this Commonwealth holding that the well settled rule of the law of agency that an undisclosed principal may, on proof of his existence and identity, be held liable on an unsealed contract made in his behalf by his agent does not apply to a sealed contract. Shawsheen Manor Corp. v. Colantino, 329 Mass. 715, 718 (1953). Ferrick v. Barry, 320 Mass. 217, 224-225 (1946). Moran v. Manning, 306 Mass. 404, 410-411 (1940). Elwell v. Shaw, 16 Mass. 42, 46-47 (1819). See 3 Am. Jur. 2d Agency §§ 310, 312 (1962); Restatement (Second) of Agency §§ 190, 191 (1958).

The plaintiff criticises our law with regard to sealed instruments as “outdated and stale.” He asks, in effect, that we abolish the distinction between sealed and unsealed instruments with regard to the doctrine of undisclosed principals. He goes further and asks that we declare the seal “to have no force, effect or consequence in . . . [the present] situation, or more preferably, any situation.” While we are not prepared to, nor do we, intimate any view as to the propriety of the continued vitality of the seal in other fields of the law, we are in agreement with the plaintiff with respect to making sealed instruments equally subject to the law of agency *154 relating to undisclosed principals as are unsealed instruments.

The practice of sealing written documents is centuries old, its importance originally being as a means of authentication in times when most persons were unable to write their names. See 2 W. Blackstone, Commentaries *305-306; O.W. Holmes, Jr., The Common Law 271-272 (1881); 7 J. Wigmore, Evidence § 2161 (3d ed. 1940). Moreover, the seal came also to serve the evidentiary function of rendering documents indisputable as to the terms of the underlying transaction and thereby dispensed with necessity of proof by the summoning of witnesses. 9 J. Wigmore, Evidence § 2426 (3d ed. 1940). Indeed, the sealed instrument was considered such reliable evidence of an obligation that it became the contract itself (called a “specialty”), and loss or destruction of the instrument meant loss of all rights of the obligee against the obligor. See Ames, Specialty Contracts and Equitable Defences, 9 Harv. L. Rev. 49 (1895); 1A A. Corbin, Contracts § 255 (1963).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Thirty 2 Rutland St., LLC v. Chan
103 N.E.3d 771 (Massachusetts Appeals Court, 2018)
In re NNN 123 North Wacker, LLC
510 B.R. 854 (N.D. Illinois, 2014)
Wasatch Oil & Gas, L.L.C. v. Reott
2007 UT App 223 (Court of Appeals of Utah, 2007)
City of Boston v. Roxbury Action Program, Inc.
862 N.E.2d 763 (Massachusetts Appeals Court, 2007)
Knott v. Racicot
442 Mass. 314 (Massachusetts Supreme Judicial Court, 2004)
Eastern Products Corp. v. Continental Casualty Co.
787 N.E.2d 1089 (Massachusetts Appeals Court, 2003)
Aceta v. Robinson
2000 Mass. App. Div. 155 (Mass. Dist. Ct., App. Div., 2000)
Leary v. Miller (In Re Leary)
241 B.R. 266 (D. Massachusetts, 1999)
Commonwealth v. Reynolds
635 N.E.2d 254 (Massachusetts Appeals Court, 1994)
Hibernia Savings Bank v. Bomba
620 N.E.2d 787 (Massachusetts Appeals Court, 1993)
Garland v. Fleischmann
831 P.2d 107 (Utah Supreme Court, 1992)
Kingston Housing Authority v. Sandonato & Bogue, Inc.
577 N.E.2d 1 (Massachusetts Appeals Court, 1991)
Hunt v. Rice
521 N.E.2d 751 (Massachusetts Appeals Court, 1988)
Johnson v. Norton Housing Authority
375 N.E.2d 1209 (Massachusetts Supreme Judicial Court, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
338 N.E.2d 335, 369 Mass. 150, 1975 Mass. LEXIS 788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nalbandian-v-hanson-restaurant-lounge-inc-mass-1975.