Von Papen v. Rubman

18 F. Supp. 3d 77, 2014 WL 1877546, 2014 U.S. Dist. LEXIS 65039
CourtDistrict Court, D. Massachusetts
DecidedMay 12, 2014
DocketCivil Action No. 13-12115-RGS
StatusPublished
Cited by1 cases

This text of 18 F. Supp. 3d 77 (Von Papen v. Rubman) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Von Papen v. Rubman, 18 F. Supp. 3d 77, 2014 WL 1877546, 2014 U.S. Dist. LEXIS 65039 (D. Mass. 2014).

Opinion

MEMORANDUM AND ORDER ON DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

STEARNS, District Judge.

In late November of 2010, Arvid Von Papen, a resident of Massachusetts, approached Vermont brothers Jeffrey Rub-man and Bradd Rubman with the idea of selling them a campground on a lake in Wareham, Massachusetts. The campground was part of a 600-acre parcel (Property) that also contained cranberry bogs and a sand quarry. According to Von Papen, he shelved his original plan to buy the Property himself and instead assisted the Rubmans in making the purchase. In exchange, he alleges that Jeffrey Rubman promised him a 99-year lease on the bogs and the sand quarry. The Rubmans eventually took title to the Property, but never followed through with the promised lease. A problem: Jeffrey Rubman’s alleged promise was never put in writing.

After a futile effort to obtain satisfaction from the Rubmans, Von Papen filed this lawsuit. As is often the ease when a claim-at-law (in this case contract) appears shaky, Von Papen also seeks relief in equity. The Verified Complaint sets out eight counts — breach of contract (Count I); breach of the covenant of good faith and fair dealing (Count II); fraud in the inducement (Count III); promissory estop-pel (Count IV); unjust enrichment (Count V); declaratory relief regarding the parties legal relationship (Count VI); and violation of Mass. Gen. Laws. eh. 93A (Count VII). Von Papen also seeks to reach and apply the Rubmans’ right, title, and interest in Maple Park 200, LLC, the nominal [80]*80owner of the Property (Count VIII). The Rubmans for their part move for summary judgment contending that no enforceable contract was ever agreed upon for the purchase or leaseback of the Property. Nor is there, they argue, any basis for an award of equitable relief.

BACKGROUND

The facts in the light most favorable to Von Papen as the nonmoving party, as taken from the Rubmans’ Statement of Material Facts (SOF), Von Papen’s counter-statements, and the Verified Complaint, are as follows.1

In the summer of 2010, Von Papen learned that approximately 600 acres in Wareham, owned by Brock Tucy, was tied up in a Chapter 11 bankruptcy, and potentially for sale. The Property consisted of a lakeside campground (Maple Park), some underutilized cranberry bogs, and a sand quarry. Van Papen conceived the idea of purchasing the defaulted mortgage, buying the Property at a foreclosure sale, and then selling off or leasing Maple Park while keeping the bogs and sand quarry for himself. Von Papen persuaded two of his friends, William Deyesso and Robert Merowitz, to invest in the project.

In late November of 2010, a stockbroker told Deyesso that he had a client interested in purchasing a campground. The broker provided Von Papen with an introduction to Jeffrey Rubman. On December 4, 2010, Jeffrey Rubman signed a Confidentiality and Non-Disclosure Agreement (CNDA) with Von Papen and Deyesso. Jeffrey Rubman wrote an addendum to the CNDA that provided,

[hjowever, in the event the discloser determines not to pursue a transaction, the limitations on the Recipient set forth in this Agreement shall terminate and be of no further force or effect. We will not proceed without your involvement for one year without your written release.

Compl.-Ex. A. That same day, Von Papen asked Jeffrey Rubman whether he and his brother Bradd Rubman might be interested in acquiring the entire Property and then leasing back to him the bogs and the sand quarry (about 440 acres of the whole). According to Von Papen, Jeffrey Rubman orally agreed to the idea, provided that Von Papen over time make the Rubmans whole in lease payments, which Von Papen agreed to do. Von Papen summarized his understanding of the agreement with Jeffrey Rubman in an email to Deyesso dated December 5, 2010.

Spent the last 2 days working out a deal with the doctor [Jeffrey Rubman]. I hope you like were [sic] we are at this point. In general terms. He would buy the property (or note [sic] then the property). He would take what seems like approx. 80 acres of the present campground area. With an additional approx. 80 acres towards the river. We would lease the remainder approx. 240 in that south parcel plus the approx. 200 acre north parcel. He does not want an overlap of the two businesses. He’s solely interested in the campground. We could have a 99 year lease. I told [him] we would need an option to buy. He agreed that we could exercise that option once we made him whole in lease payments. Possibly sooner based on our lease structure and performance. He has no interest in redevelopment. He should be open to a partial release scenario for form A’s and subdivisions. [81]*81The doctor is leaving for a week starting next weekend. We need to finish our proposal within the next few days in hopes of him going to the site at the mid to later part of this week. Please call me. Many decisions to be made. I brought us to the next step with him. He seems to be a very good human being. So rare these days.

Von Papen Aff.-Ex. A. Also on December 5, 2010, Von Papen provided .Jeffrey Rub-man with aerial images of the Property and a description of its general layout. On December 9, 2010, Bradd Rubman emailed Von Papen to say that “Jeff and I are interested in pursuing the opportunity at Cape Cod.” Id-Ex. C. He asked for additional information “prior to a site visit,” including “who from your group is involved,” the present posture of “the bankruptcy/foreclosure” proceedings, “any permit violations,” Von Papen’s “definition of electrical problem(s),” whether the septic system had experienced “any recent failures,” and for documents including income/expense statements, tax returns, a site map, and a campground brochure. Id. Bradd Rubman also asked, “How will the ongoing operations of the bogs and sand removal effect [sic] the campground atmosphere?” and for a “[t]imetable of this transaction.” Id.

Von Papen responded to the questions in a December 13, 2010 email, adding that a memorandum of understanding (MOU) “would be greatly appreciated and could be drafted by your attorney prior to providing any financials. I believe that we are at the point whereby we should share a common understanding in writing of our proposal at this time.” Defs.’ Ex. 4 at 1. During the last week of 2010, the Rub-mans broke off the discussions indicating that they were no longer interested in buying the Property.

In February of 2011, the Rubmans reini-tiated contact with Von Papen expressing a renewed interest in the deal. As a followup, a letter from Von Papen’s lawyer, dated March 1, 2011, proposed that the Von Papen “group” and the Rubmans form a “joint [v]enture” to acquire the mortgage to the Property, and then transfer the campground to the Rubmans and the remainder of the parcel to Von Papen. Defs.’ Ex. 6. On March 2, 2011, Bradd Rubman responded that he and his brother “have a high interest in the park, but are not interested in purchasing the note. Please let us know if/when you purchase the note.” Defs.’ Ex. 7.

Chris Zimmerman joined the Von Papen group in May of 2011. Zimmerman had obtained a June 27, 2011 appraisal of the Property valuing it at $11,455,000. Zimmerman spoke to Tucy (the nominal owner) and secured an option to purchase the Property, which was assigned to Maple Park Partners, LLC (a nominee trust organized by the Von Papen interests). On July 1, 2011, Von Papen emailed Jeffrey Rubman informing him that his group had “taken legal control of the property.

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Bluebook (online)
18 F. Supp. 3d 77, 2014 WL 1877546, 2014 U.S. Dist. LEXIS 65039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/von-papen-v-rubman-mad-2014.