Simone v. Merry

3 Mass. L. Rptr. 156
CourtMassachusetts Superior Court
DecidedNovember 18, 1994
DocketNo. 94-1273
StatusPublished

This text of 3 Mass. L. Rptr. 156 (Simone v. Merry) 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
Simone v. Merry, 3 Mass. L. Rptr. 156 (Mass. Ct. App. 1994).

Opinion

Rup, J.

On June 1, 1994, Richard C. Simone and Linda Simone brought suit against Paul H. Merry, Esq., W. Arthur Garrity III, Esq. and Jonathan Levin, Esq. for negligence and intentional infliction of emotional distress. These claims arise from the defendant Merry’s representation of the plaintiffs in a United States Bankruptcy proceeding. The defendants now move to dismiss the plaintiffs’ complaint pursuant to Mass.R.Civ.P. 12(b)(6).

At the initial hearing it became apparent that the motion to dismiss should more properly have been one for summary judgment. The parties were then afforded an opportunity to present material pertinent to a summary judgment motion. For the reasons set forth below, the defendants’ motion to dismiss, which is treated as a motion for summary judgment, is denied.

BACKGROUND

In 1991, the defendant Merry agreed to represent the plaintiffs in an adversary proceeding in the United States Bankruptcy Court on a contingency basis. The plaintiffs brought suit against Worcester County Institute for Savings, seeking damages for misrepresentation and other unfair and defective acts and practices committed during the foreclosure sale of the plaintiffs’ former two-family home. After trial the bankruptcy judge found that the bank acted in a commercially reasonable fashion and dismissed the case. The plaintiffs allege that while defendant Merry zealously pursued the case from June 1991 through May 8, 1992, he negligently handled the case thereafter.

DISCUSSION

Summaiy judgment shall be' granted where there are no genuine issues as to any material fact and where the moving party is entitled to judgment as a matter of law. Cassessou. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community Nat’l Bank v. Dawes, 369 Mass. 550, 553 (1976); Mass.R.Civ.P. 56(c). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue, “and [further] that the moving party is entitled to judgment as a matter of law.” Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). A party moving for summary judgment who does not have the burden of proof at trial may demonstrate the absence of a triable issue either by submitting affirmative evidence that negates an essential element of the opponent’s case or “by demonstrating that proof of that element is unlikely to be forthcoming at trial.” Flesner v. Technical Communications Corp., 410 Mass. 805, 809 (1991); accord, Kourouvacilis u. General Motors Corp., 410 Mass. 706, 716 (1991). “If the moving party establishes the absence of a triable issue, the party opposing the motion must respond and allege specific facts which would establish the existence of a genuine issue of material fact in order to defeat [the] motion.” Pederson, supra, 404 Mass, at 17. “(T]he opposing party cannot rest on his or her pleadings and mere assertions of disputed facts to defeat the motion for summary judgment.” LaLonde u. Eissner, 405 Mass. 207, 209 (1989).

[157]*1571.Are the Plaintiffs’ Claims the Property of the Estate?

In the related bankruptcy proceeding, the plaintiffs brought claims against the Worcester County Institute for Savings on behalf of the estate. In the present case, the plaintiffs seek relief for themselves, not the estate. The defendants argue that claims alleging negligence or injury from a lawyer’s handling of a bankruptcy petition and the lawyer’s efforts to produce increased assets for the debtor’s estate belong to the estate and therefore can only be brought by the bankruptcy trustee.

A debtor’s legal or equitable interests in property as of the commencement of a bankruptcy case become property of the bankruptcy estate. In re Dow, 132 B.R. 853, 859 (Bkrtcy. S.D. Ohio 1991) (quoting 11 U.S.C. §541(a)(l)). The bankruptcy estate’s property includes causes of action existing at the time of commencement of the bankruptcy action. Id. (cases omitted).

As debtors, the plaintiffs have standing to litigate the “ownership” of the malpractice and intentional infliction of emotional distress claims. In reEllwanger, 140 B.R. 891, 896 (Bkrtcy. W.D. Wash. 1992). In that regard, the issue is whether those claims, which arise out of the bankruptcy proceeding, are property of the estate.

Where, as here, the plaintiffs’ claims allege conduct by the defendants after commencement of the bankruptcy case and the elements of the claims were not in existence at the time of bankruptcy filing, these claims are the property of the plaintiffs and not the bankruptcy estate. See In re Dow, supra at 860.

2.Doctrine of Partnership by Estoppel Issue

In addition to bringing claims against Merry, the plaintiffs seek recovery against Garrity and Levin, owners of the firm by which Merry is employed. The issue to be decided is whether, under the doctrine of partnership by estoppel, Garrity and Levin are liable to the same extent as Merry.

The common law doctrine of partnership by estoppel is codified in M.G.L.c. 108A, § 16 “(T]o prevail under this doctrine, a plaintiff must prove: (1) that the would-be partner has held himself out as a partner; (2) that such holding out was done by the defendant directly or with his consent; (3) that the plaintiff has knowledge of such holding out; and (4) that the plaintiff relied on the ostensible partnership to his prejudice.” Brown v. Gerstein, 17 Mass.App.Ct. 558, 571 (1984), citing Standard Oil Co. v. Henderson, 265 Mass. 322, 326 (1928).

Whether partnership by estoppel exists is ordinarily a question of fact. Atlas Tack Corp. v. DiMasi, 37 Mass.App.Ct. 66, 68 (1994), citingMersick v. Bilqfsky, 205 Mass. 488, 492 (1910).

At issue is whether Garrity and Levin held themselves out as partners of Merry and whether they consented to the holding out. In Brown v. Gerstein, supra at 572, the court noted “that the use of a person’s name in a business, even with that person’s knowledge, is too slender a thread to warrant a favorable finding on the consent element.” In this case, however, materials submitted by the parties indicate that correspondence the plaintiffs received from Merry bore the letterhead of Garrity and Levin. Additionally, the stationery contained a roll of attorneys (including Garriiy and Levin) in the margin, and Merry’s name, which was not included in the letterhead title, appeared in that margin. Moreover, the words, “Sincerely yours, Garrity & Levin,” appeared at the close of the letter and Merry's name and signature followed. See Atlas Tack Corp. v. DiMasi, 37 Mass.App.Ct. 66, 69 (1994). These facts, in addition to the allegations of the plaintiffs, present a question of fact as to whether a partnership by estoppel exists. Accordingly, summary judgment will be denied on that issue.

3.Negligence

Summary judgment is seldom appropriate in negligence actions, Manning v. Nobile, 411 Mass. 382, 388 (1991), quoting Inferrera v. Sudbury, 31 Mass.App.Ct. 96, 103 (1991), because the question of negligence is usually one of fact. Roderick v. Brandy Hill Co., 36 Mass.App.Ct. 948, 949 (1994), citing Mullins v. Pine Manor College, 389 Mass. 47, 56 (1983).

In a legal malpractice case, the plaintiff must prove: (1) the attorney’s negligence; (2) the loss the plaintiff suffered; and (3) the causal connection between the negligence and the loss. Joseph R.

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Related

Ellwanger v. Budsberg (In Re Ellwanger)
140 B.R. 891 (W.D. Washington, 1992)
Jones v. Hyatt Legal Services (In Re Dow)
132 B.R. 853 (S.D. Ohio, 1991)
Brown v. Gerstein
460 N.E.2d 1043 (Massachusetts Appeals Court, 1984)
Pederson v. Time, Inc.
532 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1989)
LaLonde v. Eissner
539 N.E.2d 538 (Massachusetts Supreme Judicial Court, 1989)
Atlas Tack Corp. v. DiMasi
637 N.E.2d 230 (Massachusetts Appeals Court, 1994)
Community National Bank v. Dawes
340 N.E.2d 877 (Massachusetts Supreme Judicial Court, 1976)
Agis v. Howard Johnson Co.
355 N.E.2d 315 (Massachusetts Supreme Judicial Court, 1976)
Kourouvacilis v. General Motors Corp.
575 N.E.2d 734 (Massachusetts Supreme Judicial Court, 1991)
Flesner v. Technical Communications Corp.
575 N.E.2d 1107 (Massachusetts Supreme Judicial Court, 1991)
Inferrera v. Town of Sudbury
575 N.E.2d 82 (Massachusetts Appeals Court, 1991)
Cassesso v. Commissioner of Correction
456 N.E.2d 1123 (Massachusetts Supreme Judicial Court, 1983)
Mullins v. Pine Manor College
449 N.E.2d 331 (Massachusetts Supreme Judicial Court, 1983)
Manning v. Nobile
582 N.E.2d 942 (Massachusetts Supreme Judicial Court, 1991)
Mersick v. Bilafsky
91 N.E. 889 (Massachusetts Supreme Judicial Court, 1910)
Standard Oil Co. of New York v. Henderson
163 N.E. 743 (Massachusetts Supreme Judicial Court, 1928)
Mulford v. Mangano
626 N.E.2d 622 (Massachusetts Appeals Court, 1994)
Roderick v. Brandy Hill Co.
631 N.E.2d 559 (Massachusetts Appeals Court, 1994)

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3 Mass. L. Rptr. 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simone-v-merry-masssuperct-1994.