Tosti v. Pro-Tection, Inc.

1986 Mass. App. Div. 132, 1986 Mass. App. Div. LEXIS 46
CourtMassachusetts District Court, Appellate Division
DecidedOctober 2, 1986
StatusPublished

This text of 1986 Mass. App. Div. 132 (Tosti v. Pro-Tection, 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
Tosti v. Pro-Tection, Inc., 1986 Mass. App. Div. 132, 1986 Mass. App. Div. LEXIS 46 (Mass. Ct. App. 1986).

Opinion

Black, P.J.

This is an action brought on February 1, 1984 by the plaintiff, Arthur M. Tosti (“Tosti”), to recover amounts alleged to be due as a result of his contacting, discussing costs, and producing to the defendant Pro-Tection, Inc. (“Pro-Tection”) a person who eventually purchased a franchise of ProTection’s fabric protectant business. The complaint, as amended, was brought in three counts. The first alleged breach of an express contract, the second was for unjust enrichment and the third count alleged a violation of G.L. c. 93A. The defendant’s answer essentially denied the allegations set forth in the plaintiffs complaint.

The case was tried on December 16, 1985. There was evidence tending to [133]*133show the following:

In early March 1983, Tosti contacted Pro-Tection, seeking to sell the defendant’s franchises on a commission basis. Tosti had had ten years experience selling franchises for two other companies, namely Chem-Dry and Rug Doctor, both being in the fabric cleaning business. Pro-Tection was a corporation engaged in the sale of fabric protectant services and goods, and franchised its business. Thomas Gilmore, president of Pro-Tection (“Gilmore”) agreed that Tosti could sell Pro-Tection franchises during Tosti’s initial visit to Pro-Tection.

After Tosti’s initial visit to Pro-Tection, during which he discussed with Gilmore his franchise-selling experience and his desire to sell Pro-Tection franchises, he met Gilmore, by prior arrangement, in Rhode Island to witness Gilmore’s sale of Pro-Tection’s services and goods. Tosti knew someone who might be interested in purchasing a franchise of this nature, a Mr. Bud Webber (“Webber”), whom he had known for some years. Tosti, with Gilmore’s consent, arranged for Webber to attend this sale. Webber and Tosti attended Gilmore’s sale to the Rhode Island customer. After this sale there were discussions among Gilmore, Tosti, Webber and Webber’s wife concerning Pro-Tection franchises.

Over the next few days, Tosti met Pro-Tection employees, read Pro-Tection literature, and attended training sessions for sellers of Pro-Tection’s goods and services. Gilmore had provided Tosti with names of approximately one hundred persons who might be interested in buying Pro-Tection franchises and during the second week of March, Tosti made phone calls to some of these individuals. At this time, Gilmore stated that Tosti would receive a 10% commission for selling franchises.

At one point after mid-March, Tosti approached Gilmore with a proposal that Tosti receive a 10% commission on sales of franchises where leads were provided by Pro-Tection, and a 15% commission on sales of franchises where Tosti found and closed the sale.

Tosti testified that Gilmore agreed to a 15% commission on the Webber deal, and also testified that he informed Gilmore of two other possible sales on which he wanted a 15% commission if a sale occurred, and that Gilmore agreed to this arrangement.

Tosti informed Gilmore of Webber’s interest in buying the franchise, and Gilmore told Tosti to have Webber come to Pro-Tection’s office to discuss the matter. At about this time, Tosti asked Gilmore to assume negotiations because of his lack of experience in the field. Also, the exact geographical limits of Webber’s franchise and the purchase price were yet to be determined. Tosti testified that Gilmore agreed that Pro-Tection would pay him a 15% commission notwithstanding that Gilmore took over negotiations at this point.

Webber eventually purchased the Seattle Pro-Tection franchise for $40,000.00.

Tosti testified that he demanded immediate payment of a 15%. commission on this sale, equal to $6,000.00. He testified that Gilmore asked for ninety days to pay, but that Tosti insisted on payment immediately.

At this point, Tosti ceased any work for Pro-Tection, and his only contact with Pro-Tection thereafter by telephone demanding payment, and a certified letter to Pro-Tection, returned undelivered. Tosti had not been paid anything in relation to the Webber sale.

At the close of the trial, the defendant made the following requests for [134]*134rulings, and the Court acted on them as follows:

1. There is insufficient evidence for a finding in favor of plaintiff.
Ruling: Denied: inasmuch as I find that there was a contract implied by Law which arose because the Defendant was unjustly enriched as a consequence and by reason of efforts of the Plaintiff.
2. There is sufficient evidence for a finding in favor of defendant.
Ruling: Allowed.
3. Recovery under a theory of quantum meruit of (sic) implied-in-fact contract [is not justified] based upon actions of the plaintiff taken and in anticipation of a contract or business transaction. Leow v. Denaro, 362 Mass. 853, 863 (1972) (sic); Anisgard v. Bray, Mass. App. Ct. Adv. Sh. (1981) 826, 830.1
Ruling: Allowed: but inapplicable to facts found inasmuch as I find that the actions of the Plaintiff were not gratuitous.

The plaintiff also submitted two requests for rulings of law, both which were deemed as having been waived in light of the court’s finding in favor of the plaintiff under the second count of the amended complaint.

The defendant claims to be aggrieved by the judge’s ruling on the request number 1, in that it contends that there was insufficient evidence to support an award of $5,000 to the plaintiff on a theory of implied-in-law contract/unjust enrichment.

It appears that the judge found for the defendant on the contract issue due to the fact that the plaintiff failed to fulfill a condition of the contract. The court did find, however, that there was a contract implied by law. A quasi contract or a contract implied by law differs from one which is implied by fact (or an express contract). The Supreme Judicial Court defined a quasi contract in Salamon v. Terra, 394 Mass. 857, 859 (1985), a case in which that court affirmed the Southern Appellate Division’s reversal of a trial court’s decision granting quantum meruit damages, stating:

A quasi contract or a contract implied in law is an obligation created by law ‘for reasons of justice, without any expression of assent and sometimes even against a clear expression of dissent.... [C] considerations of equity and morality play a large part. . . in constructing a quasi contract_’ 1 A. CORBIN, CONTRACTS, § 19 (1963). It ‘is not really a contract, but a legal obligation closely akin to a duty to make restitution.’ Bloomgarden v. Coyer, 479 F.2d 201, 210 (D.C. Cir. 1973). ‘A person who has been unjustly enriched at the expense of another is required to make restitution to the other.’ RESTATEMENT OF RESTITUTIONS 1 (1937). The underlying basis for awarding quantum meruit damages in a quasi contract case is unjust enrichment of one party and unjust detriment to the other party. See U.S. Controls Corp. v. Windle, 509 F.2d 909, 912 (7th Cir. 1975); 1 A. CORBIN, CONTRACTS § 19A (Kaufman Supp. 1984).

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Related

Henry S. Bloomgarden v. Charles B. Coyer
479 F.2d 201 (D.C. Circuit, 1973)
Anisgard v. Bray
419 N.E.2d 315 (Massachusetts Appeals Court, 1981)
Boston Athletic Association v. International Marathons
467 N.E.2d 58 (Massachusetts Supreme Judicial Court, 1984)
Salamon v. Terra
477 N.E.2d 1029 (Massachusetts Supreme Judicial Court, 1985)
Driscoll v. Bunar
103 N.E.2d 809 (Massachusetts Supreme Judicial Court, 1952)
Hurwitz v. Parkway Country Club, Inc.
180 N.E.2d 94 (Massachusetts Supreme Judicial Court, 1962)
Dane v. Cormier
285 N.E.2d 451 (Massachusetts Supreme Judicial Court, 1972)
Loew v. Denaro
285 N.E.2d 115 (Massachusetts Supreme Judicial Court, 1972)
U. S. Controls Corp. v. Windle
509 F.2d 909 (Seventh Circuit, 1975)

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Bluebook (online)
1986 Mass. App. Div. 132, 1986 Mass. App. Div. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tosti-v-pro-tection-inc-massdistctapp-1986.