Trahan Bros. v. Pelletier's Building Supply Co.

25 Mass. L. Rptr. 70
CourtMassachusetts Superior Court
DecidedDecember 8, 2008
DocketNo. 080242D
StatusPublished

This text of 25 Mass. L. Rptr. 70 (Trahan Bros. v. Pelletier's Building Supply Co.) 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
Trahan Bros. v. Pelletier's Building Supply Co., 25 Mass. L. Rptr. 70 (Mass. Ct. App. 2008).

Opinion

Lemire, James R., J.

This is a civil action in which the plaintiff, Trahan Bros., Inc. (“Trahan”) alleges that the defendant, Pelletier’s Building Supply Co., Inc. (“Pelletier”), failed to pay the outstanding balance due on a promissoiy note, in breach of an unlimited guaranty (the “Guaranty”) securing payment of the note. Trahan now moves for summary judgment on the grounds that; 1) there is no dispute that Pelletier has failed to perform its obligations under the Guaranty, and that 2) Pelletier cannot raise any legitimate defenses to payment under the Guaranty. For the following reasons, Trahan’s motion is hereby ALLOWED.

BACKGROUND

The undisputed facts and the disputed facts viewed in the light most favorable to the non-moving party, as revealed by the summary judgment record, are as follows.

Trahan formerly operated a building supply business in Southbridge, Massachusetts. According to an Affidavit of David M. Pelletier, the parties entered into a letter of intent relative to Pelletier’s purchase of Trahan’s business in November 2002. (Pelletier Aff. at par. 3.) In this letter, Trahan agreed to purchase an abutting parcel (the “Morrisey Parcel”) and assign its rights to the parcel to Pelletier. (Pelletier Aff. at paras. 4-5.) Pelletier would purchase both the Morrisey Parcel and the Trahan parcel (together, the “Real Estate”) at the same time. (Pelletier Aff. at par. 5.) Pelletier claims that the purchase of the Real Estate was conditioned on its ability to lawfully construct a warehouse on the Morrisey Parcel, and further that Margaret M. Farrand (“Farrand”), Trahan’s owner, was well aware of this condition. (Pelletier Aff. at paras. 10, 11, 12, 13.)

During the early months of 2003, both parties took efforts to determine whether a warehouse could be built on the Morrisey Parcel. In January 2003, Trahan engaged Berlin Engineering Associates, Inc. to draw a site and conservation plan showing the proposed warehouse. (Pelletier Aff. at par. 19.) In February 2003, Trahan petitioned the local Conservation Commission to build the warehouse on the Morrisey Parcel, and shortly thereafter the petition was approved. (Pelletier Aff. at par. 20.) On March 24, 2003, Trahan and Pelletier entered into a purchase and sale agreement (“P&S Agreement”) whereby Pelletier agreed to purchase Trahan’s business, including its assets and real estate.

[71]*71In April 2003, Southbridge’s building inspector advised Pelletier that the Morrisey Parcel could be improved with a warehouse for use in conjunction with the business. (Pelletier Aff. at par. 21.) Pelletier purchased Trahan’s business on April 17, 2003. On that date, David M. Pelletier, Richard A. Pelletier and Melissa A. Pelletier, Trustees of D&M Realty Trust (“the Trust”) executed and delivered to Trahan a promissory note wherein the Trust promised to pay Trahan the principal sum of $180,000.00, with six percent (6%) annual interest, in equal monthly installments of $1,998.38 beginning on May 17, 2003 (the “Note”). That same day, Pelletier executed and delivered the Guaranty to Trahan, thereby guaranteeing all obligations of the Trust under the Note.

In March 2004, Pelletier applied for, and was issued, a permit to construct the warehouse. (Pelletier Aff. at par. 22.) Pelletier spent approximately $400,000 to construct the warehouse. (Pelletier Aff. at par. 23.) It received an occupancy permit in July 2004. (Pelletier Aff. at par. 22.) Pelletier began to receive notice that abutters were challenging its use of the Morrisey Parcel for storage, and were requesting that the warehouse be removed. (Pelletier Aff. at par. 24.) In November 2005, the local zoning board ordered Pelletier to remove the warehouse, and required that the Morrisey Parcel not be used for storage. (Pelletier Aff. at par. 25.) In a decision entered in August 2006, the Land Court (Scheier, C.J.) upheld the zoning board’s decision. (Pelletier Aff. at par. 25.) As a result, Pelletier was forced to close the business it purchased from Trahan and to cease all operations at the Real Estate, and has lost approximately $500,000.00. (Pelletier Aff. at par. 26, 27.)

Trahan filed this complaint on February 1, 2008, alleging the Trust has failed to make the required payments since September 2007 in breach of the Guaranty, and that Pelletier owes Trahan principal in the amount of $114,956.75 plus accrued and unpaid interest, subsequently accruing interest and cost of collection, including attorneys fees. Trahan moved for summary judgment on May 22, 2008.

DISCUSSION

I. Standard of Review

Summary judgment shall be granted when there are no genuine issues as to any material fact and where the moving party is entitled to judgment as a matter of law. Mass.R.Civ.P. 56(e); Cassesso v. Comm’r of Corrections, 390 Mass. 419, 422 (1983); Cmty. Nat’l Bank v. Dawes, 369 Mass. 550, 553 (1976). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue, and that the summary judgment record entitles the moving party to judgment as a matter of law, even if the moving party would not have the burden of proof on the issue at trial. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). The moving party may satisfy this burden by either submitting affirmative evidence that negates an essential element of the opposing party’s case or by demonstrating that the opposing party has no reasonable expectation of proving an essential element of his case at trial. Flesner v. Technical Comm’cns Corp., 410 Mass. 805, 809 (1991); Kourouvacilis v. Gen. Motors Corp., 410 Mass. 706, 716 (1991).

II. Pelletier’s Claim of Mutual Mistake

In its Opposition to Trahan’s Motion for Summary Judgment, Pelletier argues that prior to the consummation of the P&S Agreement, both parties were well aware that Pelletier would only complete the purchase of Trahan’s business if the Morrisey Parcel could be legally improved with a warehouse. Because the Guaranty is silent with regard to this condition, Pelletier contends that the Guaranty does not reflect the true intent of the parties and was the product of mutual mistake, and as such, is subject to reformation. Pellet-ier then argues that a dispute of material facts exists regarding the intent of the parties, such that summary judgment should be denied.

In cases where mutual mistake is alleged, the parol evidence rule will not exclude extrinsic evidence of the parties’ intent. Mickelson v. Barnet, 390 Mass. 786, 792 (1984) (and cases cited). This court has traditionally “required that a party present ‘full, clear, and decisive’ proof of mistake in order to be entitled to reformation.” Id., quoting Stockbridge Iron Co. v. Hudson Iron Co., 107 Mass. 290, 317 (1871). Pelletier’s suggestion that a mutual mistake existed is based solely on an affidavit from David M. Pelletier, whereby he claims that “at all relevant times, Farrand was well aware that Pelletier would only proceed with the purchase of Trahan’s building supply business and the Trahan Parcel if the business could be expanded by constructing a warehouse on the Morrisey Parcel.” (Pelletier Aff. at par. 13.) As the non-moving party, Pelletier bears the burden to “respond and allege specific facts which would establish the existence of material fact in order to defeat a motion for summary judgment.” Pederson, 404 Mass. at 17. David Pelletier’s statement is not supported by any facts available in the summary judgment record. “Bare assertions and conclusions regarding. . .

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Related

Mickelson v. Barnet
460 N.E.2d 566 (Massachusetts Supreme Judicial Court, 1984)
Pederson v. Time, Inc.
532 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1989)
Polaroid Corp. v. Rollins Environmental Services (NJ), Inc.
624 N.E.2d 959 (Massachusetts Supreme Judicial Court, 1993)
Community National Bank v. Dawes
340 N.E.2d 877 (Massachusetts Supreme Judicial Court, 1976)
LaFleur v. C.C. Pierce Co.
496 N.E.2d 827 (Massachusetts Supreme Judicial Court, 1986)
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)
Cassesso v. Commissioner of Correction
456 N.E.2d 1123 (Massachusetts Supreme Judicial Court, 1983)
Stockbridge Iron Co. v. Hudson Iron Co.
107 Mass. 290 (Massachusetts Supreme Judicial Court, 1871)
Pybus v. Grasso
59 N.E.2d 289 (Massachusetts Supreme Judicial Court, 1945)
Cataldo Ambulance Service, Inc. v. City of Chelsea
688 N.E.2d 959 (Massachusetts Supreme Judicial Court, 1998)

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Bluebook (online)
25 Mass. L. Rptr. 70, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trahan-bros-v-pelletiers-building-supply-co-masssuperct-2008.