Saunders & Associates v. Empire, Inc.

1991 Mass. App. Div. 16
CourtMassachusetts District Court, Appellate Division
DecidedJanuary 18, 1991
StatusPublished

This text of 1991 Mass. App. Div. 16 (Saunders & Associates v. Empire, Inc.) 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
Saunders & Associates v. Empire, Inc., 1991 Mass. App. Div. 16 (Mass. Ct. App. 1991).

Opinion

Chin, J.

This is an action for breach of a contract for rental of commercial real estate.

The plaintiff, Saunders and Associates, (Saunders) entered into a written lease with the defendant, Empire, Inc. (Empire) for the premises at 39 Newbury Street, Boston. The lease was for five years and fifteen days, commencing on April 15,1985 and ending on April 30,1990.

Empire sublet the front portion of the premises to a subtenant named Karen Eyges d/b/a Nous Nours.

At the time of the execution of the lease, defendant Mark L Ostrovsky, President of Empire, executed a document entitled “Guaranty.” Ostrovsky signed the document “Mark L Ostrovsky, President.”

In April, 1988, Empire’s subtenant vacated the premises on one week’s notice. Empire found it difficult to pay its rent and the last rent payment made was for the rent due June 15,1988.

When the subtenant vacated her portion of the premises, Empire placed a cardboard sign in the front window advertising the space for sublease. Empire’s phone number was on the cardboard sign. Plaintiffs workman came into the premises in June and removed the cardboard sign. Plaintiff thereafter put up its own sign. Paragraph ten of the lease provides:

The LESSEE agrees to maintain the leased premises in good condition, damage by fire and other casualty excepted, and whenever necessary, to replace plate glass and other glass therein, acknowledging that the premises are now in good order and the glass whole. The LESSEE shall not permitthe leased premises to be loaded, damaged, stripped, or defaced, nor suffer any waste. LESSEE shall obtain written consent of LESSOR before erecting any sign on the premises.

The new cardboard sign had plaintiffs phone number on it.

As a result of its placing the cardboard sign in the window, Empire found Dennis Hale/Tilley’s Endurables, who made an inquiry about Empire’s space. Hale never filled out an application for this space with the plaintiff. Admitted into evidence as Exhibit 13 was a letter sent by Empire to plaintiff, appended hereto as Exhibit “A”.

Noresponsewas made to this letter. Ms. Saunders testified thatsheneverreceived the letter, nor was the return receipt produced by the defendant.

In late August, 1988, Empire delivered the keys for the premises, after it was served with a notice to quit and a summary process summons and complaint Plaintiffs lawyer acknowledged receipt, and entered into possession, but put Empire on notice that such action should not be considered an acceptance of surrender.

In November, 1988, plaintiff leased to R.W. Alekel d/b/a Art to Go the front portion [17]*17of the premises which were previously occupied by Empire’s subtenant. There was no evidence that any work was done to this portion of the premises in order to render it fit for Alekel’s occupancy. Wayne Michael Vitali, plaintiffs bookkeeper, testified from records of rent payments which were maintained by him. He testified that all rental payments are entered on his records on the date they were received. He testified that he made the following entries of payments received from Alekel, including the application of his security deposit

December 5,1988 $3,266.00
January 1,1989 $3,750.00
February 1,1989 $3,750.00
March 1,1989 $3,750.00
April 1,1989 $3,750.00

Alekel ceased making payments and vacated the portion of the premises which he had leased. Vitali and Mark Goldstone, plaintiffs executive officers, both acknowledged that on November 29,1988, plaintiff received a security deposit from Alekel in the amount of $11,250.00, which was applied to rent due and owing as setforth above. There was evidence as to the amount of attorney’s fees billed by plain tiff to defendants in connection with this matter.

After Empire vacated the premises, it did nothing by way of renovations or repairs to the front portion of the premises which had previously been occupied by Karen Eyges and had, after Empire’s surrender, been occupied by Alekel. However, the plaintiff undertook substantial renovations to the rear of the premises, changing it from a clothing showroom to office space. The property was thereafter advertised by the plaintiff as “newly renovated office space,” and as “retail space.”

The defendant alleges that the trial judge erred in denying four of defendant’s requested rulings of law.

Request number 3 is as follows:

Where a lessee surrenders possession of the leased premises by delivering possession, and the lessor thereafter makes substantial renovations to the premises, or leases the premises to another at rates and for a term different than fixed under the original lease, this constitutes an acceptance of surrender and extinguishes the lessee’s obligations under the lease, including any obligation to pay rent. Caruso v. Shelit, 282 Mass. 196, 198-199 (1933); Taylen Realty Co. v. Student Book Exchange, 354 Mass. 777 (1908).

The issue of surrender is a question of fact Caruso v. Shelit, 282 Mass. 196, 200 (1933). The facts stated in the Request do not constitute an acceptance of surrender as a matter of law. There was no error in the Court’s denial of this Request

Request number 7 is as follows:

7. Where an individual signs an instrument indicating that he is signing in a representative capacity (e.g., where he writes “president” after his name), and the instrument names the entity which he represents, that individual is not personally liable for that signature. Cf. M.G.Lc. 106, sections 3-403(2) (a).

The Court denied this Request as inapplicable.

The “Guaranty” is signed “Mark Ostrovsky, President.” It does not indicate the entity which he represents. This Request assumes facts which were not found by the Court. Accordingly, this Request was properly denied.

Request number 9 is as follows:

9. On all the law and the evidence, there must be a finding for the defendant, Mark L Ostrovsky because
a. any underlying obligation has been extinguished, and
b. he did not sign the alleged guaranly in his individual capacity.

The Court found for the plaintiff on its claim against the corporation. Accordingly, the underlying obligation had not been extinguished. The guaranty is discussed above. This Request was properly denied.

[18]*18Request number 10 is as follows:

10. Where attorney’s fees are an element of damages under a contract, they must be proved in the plaintiffs case-in-chief.

In the case of Heller v. Silverbranch Construction Corp., 376 Mass. 621 (1978) the Court held that a judge presiding over an action can decide, based on his or her experience as a judge and lawyer, the amount of attorney’s fees to be paid. Accordingly, the denial of this request for ruling was proper.

For the foregoing reasons, we find that the trial judge committed no error, and order the report dismissed.

EXHIBIT “A”

June 24,1988

Ms. Lisa Saunders

c/o Saunders & Associates

20 Park Plaza

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Related

Heller v. Silverbranch Construction Corp.
382 N.E.2d 1065 (Massachusetts Supreme Judicial Court, 1978)
Caruso v. Shelit
184 N.E. 460 (Massachusetts Supreme Judicial Court, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
1991 Mass. App. Div. 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saunders-associates-v-empire-inc-massdistctapp-1991.