Philips v. Northrop & Johnson

Court of Appeals for the First Circuit·Decided January 15, 1997·No. 96-1605·Published

Opinion

USCA1 Opinion



[NOT FOR PUBLICATION]

UNITED STATES COURT OF APPEALS UNITED STATES COURT OF APPEALS

FOR THE FIRST CIRCUIT FOR THE FIRST CIRCUIT
____________________

No. 96-1605

HAROLD PHILIPS,

Plaintiff, Appellant,

v.

NORTHROP & JOHNSON,

Defendant, Appellee.

____________________

APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Joseph L. Tauro, U.S. District Judge] ___________________

____________________

Before

Cyr, Circuit Judge, _____________

Aldrich and Campbell, Senior Circuit Judges. _____________________

____________________

Norman Ross on brief for appellant. ___________
Merrill D. Goldfarb with whom Katz & Goldfarb was on brief for ____________________ ________________
appellee.

____________________

January 14, 1997
____________________

ALDRICH, Senior Circuit Judge. Plaintiff Harold _____________________

Philips, desirous of beginning a charter fishing operation

out of his home port in St. Maarten, Netherlands Antilles,

contracted to buy a boat, offered through a yacht broker in

Massachusetts. After the purchase was complete he embarked

on the voyage home only to discover she was structurally

unsound. He sued the broker, Northrup & Johnson (hereinafter

defendant), under the Massachusetts Uniform Commercial Code

("UCC"), Mass. Gen. L. ch. 106, and Mass. Gen. L. ch. 93A,

the consumer protection statute. At the close of plaintiff's

case the court granted defendant's motion for judgment as a

matter of law. Plaintiff appeals. We affirm.

I. Background __________

Early in 1994, plaintiff began perusing yachting

magazines in search of an appropriate boat. He made contact

with defendant's employee, George Georges ("Georges"), who

provided him with information on several vessels. In

September, plaintiff arranged to inspect a used 48-foot Egg

Harbor sports fishing boat. On September 26, accompanied by

his brother, Georges, and Frederick C. Rhodes ("Rhodes"), the

boat's owner, plaintiff engaged in a so-called sea-trial in

the Gloucester, Massachusetts harbor. Forthwith he signed a

purchase and sale agreement and gave defendant a deposit of

$13,000. The agreement gave plaintiff two days from that

date to conduct a survey of the boat and accept or reject it,

-2-

closing to be a month later. It also contained a provision

disclaiming any express or implied warranties.

Plaintiff testified that when he discussed the need

for a survey, Georges discouraged him, urging him instead to

accept a survey Rhodes had commissioned a year earlier.

Plaintiff agreed but requested that Georges arrange insurance

for the voyage home. (How plaintiff thought insurance could

be so readily obtained is one of the mysteries in this case.)

It was agreed that the closing would not take place in

plaintiff's absence.

In due course plaintiff wired $117,000, the

balance of the purchase price, into defendant's escrow

account. Thereafter, in spite of plaintiff's availability

and Georges' previous assurances, the closing took place,

defendant paying over the money without plaintiff's

permission, or his presence. On learning this, and that

defendant had not obtained the requested trip insurance,

plaintiff expressed his anger but later that evening had

dinner with Georges. The next day, without remonstrances, he

took possession of the boat and departed for St. Maarten.

Four days later, off the coast of Connecticut, the boat, made

of fiberglass, began to "flex." Consulting engineers later

determined that she was "hopelessly unseaworthy."

-3-

II. The Issues __________

At the start of the two day bench trial, the court

determined that the sole issue was whether defendant had the

authority to disburse plaintiff's money. Although this would

appear to be somewhat less than the allegations raised in the

complaint, (and, indeed, some of the evidence received),

plaintiff agreed with the court that this was "the main

issue." We take "main" to mean "basic." At the same time,

because it is difficult to think plaintiff was not woefully

taken advantage of overall by defendant, we will deal briefly

with other matters.

III. Discussion __________

A district court's entry of judgment as a matter of

law is subject to de novo review. Accordingly, we must

determine whether the record, when viewed in the light most

favorable to the plaintiff, provides support for a finding

in his favor by the trier-of-fact. Schultz v. Rhode Island _______ ____________

Hospital Trust Nat'l Bank, N.A., 94 F.3d 721, 726 (1st Cir. ________________________________

1996).

A. UCC Claims __________

First, Mass. Gen. L. ch. 106, 2-314 provides an

implied warranty of merchantability for all consumer goods or

services.1 Once the implied warranty attaches, any express

____________________

1. Section 2-314 provides in relevant part:

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