Ward v. Costello

15 Mass. L. Rptr. 644
CourtMassachusetts Superior Court
DecidedDecember 17, 2002
DocketNo. 984871J
StatusPublished

This text of 15 Mass. L. Rptr. 644 (Ward v. Costello) 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
Ward v. Costello, 15 Mass. L. Rptr. 644 (Mass. Ct. App. 2002).

Opinion

Giles, J.

Introduction

The instant action concerns the enforceability of a July 2, 1998 purchase and sale agreement between plaintiff Lauriston Ward (“Ward”) and defendant William Costello (“Costello”) relative to the former’s land in Carlisle, Massachusetts. Over two years ago, Ward’s then principal argument — that the agreement violated public policy in contravention of G.L.c. 61, §8 (Counts I and II) — was met with disapproval by another judge of this court. See Memorandum of Decision and Order on Cross-Motions for Partial Summary Judgment, Sosman, J., dated August 3, 2000 (“Decision”).2

With leave of that court, the parties now have filed further motions for summary judgment: Costello’s motion is addressed to his counterclaim for specific performance (Counterclaim Count II)3 and to Ward’s additional counts for misrepresentation and fraud (Count III), breach of the implied covenant of good faith and fair dealing (Count IV), breach of fiduciary duty (CountV), civil conspiracy (Count VI), and violation of G.L.c. 93A (Count IX); and Ward challenges Costello’s counterclaim for a G.L.c. 93A violation (Counterclaim Count IV). In addition, defendants Brigitte Senkler (“Senkler”), Senkler Real Estate, Inc., and Senkler Hunneman Real Estate, Inc., have moved for summary judgment on Ward’s claims for fraud and misrepresentation (Count III), civil conspiracy (Count IV), breach of fiduciary obligation (Count VII), violation of G.L.c. 93A (Count VIII), and respondeat superior (Count X).

Background

The following supplements Judge Sosman’s extensive factual summary in her Decision.

In 1960, Ward inherited a 57-acre lot on Cross Street, Carlisle, Massachusetts. He had never worked in the real estate business but hoped he could “maximize his return” on the land. In the 1960s, he began investigating the value of the properly and, in the 1970s, hired engineers to perform percolation (“perc”) testing on the land.4 The land consistently “failed” the perc tests and yielded only one buildable lot.

In 1981 and 1983, Ward received tax abatements from the town because the value of his land was “much lower” than the actual appraised value. In 1983, the assessed value of the land was $193,000.00. In 1984, he classified the land as “forest land” under G.L.c. 61, thereby entitling himself to the property tax reduction benefit established by G.L.c. 61, §3. In 1990, a company named Landvest opined that, based on the perc tests submitted by Ward, his property was “heavily constrained” and, hence, not developable.

In.the summer of 1997, Costello contacted Senkler, a real estate broker with whom he did business, to express his interest in purchasing Ward’s land. Senkler informed Costello that the land was undevelopable and that it had a troubled soil history; however, she offered to introduce him to Ward. Senkler contacted Ward and proposed Costello’s offer of $1.5 million for the land. According to Ward, Senkler, in their first conversation, “made only one remark that bears [on her role in the transaction], and that is that there would be no broker.” Likewise, Costello made clear to Senkler that he was not enlisting her as his broker because he had no interest in paying a commission. Costello and Ward agreed to meet at Senkler’s office on June 6, 1997.

Senkler was not present in the conference room when Costello and Ward discussed the potential sale. When she entered the conference room to greet the two men, Ward asked, “How do you get paid?” Senkler replied that she was just introducing them and, therefore, no commission was due and payable. She further informed Ward that, notwithstanding the lack of commission, she “hoped” to obtain future listings if Costello developed the property; however, Senkler never asked Costello for the listings. Costello and Senkler never entered into an agreement for a broker’s commission on the sale of the land.

At the meeting on June 6, 1997, Costello offered Ward $1.5 million for his 57 acres; and Ward was “veiy pleased” and “happy” with the price offered. Before the meeting with Costello, Ward felt that the land was not “percable,” or developable, and, consequently, did not have sufficient market value. At no time did Ward disclose to Costello that the land yielded unsuccessful perc testing.

After the meeting, Ward wanted to review the proposed option contract and asked Senkler for a recommendation of an attorney. That contract, dated June 6, 1997, contained the following language: “[i]t is further agreed between the parties that no entiiy or [645]*645person is acting in the capacity of a real estate broker in this matter and no commission shall be paid.” Senkler recommended two attorneys, one in Acton and the other in Concord; Ward, however, wanted an attorney in Wellesley, where he resided. Senkler then recommended James Parent (“Parent”), an attorney with the firm of Parent & Godoff, who became Ward’s legal representative. After his consultation with Parent, Ward signed on July 7, 1997, the proposed option agreement (“July Agreement”), under which Ward received a payment of $16,000.00, the first of four non-refundable payments, with the further understanding that Costello could investigate the land. The July Agreement contained the following clause; “[i]t is further agreed between the parties that no entity or person is acting in the capacity of a real estate broker in this matter and no commission shall be paid.”

Ward inquired of Parent about the relationship between Costello and Senkler. Parent speculated that Senkler hoped for future listings from Costello. Parent called Senkler and asked if she, indeed, was Costello’s broker. Senkler told Parent that she had represented Costello in other subdivisions but had no current relationship with Costello regarding Ward’s land. Senkler then sent Parent a marked-up copy of a 1988 listing she had for Costello.5 Senkler never showed the document to Costello or Ward.6 Costello and Senkler never discussed the terms of any listing she might obtain upon his purchase.

In the fall of 1997, one of Costello’s engineers, Joseph March (“March”), confirmed that access to the land was going to be “difficult.” Costello contacted Senkler and informed her that testing had not gone well, that there were upland access issues, that additional land may be needed, and, for these reasons, that he wanted a reduction in purchase price. According to Ward, Senkler told him that Costello “investigated further” and that “further access was desirable and perhaps almost necessary.” She asked for a reduction in price of $350,000.00. Ward declined the request. Senkler then arranged a meeting between Ward and Costello, which she did not attend. At the meeting, Costello told Ward that a second access would be highly advisable because the wetlands gave limited access to the property. Ward again refused to reduce the purchase price.

Approximately two weeks later, Ward contacted Costello and agreed to a price reduction of $100,000.00. Despite having the opportunity to do so, Ward did not seek advice from either Senkler or Parent. He did not speak with Costello after their meeting, did not contact another real estate broker, did not hire an appraiser, and did not speak to anyone in the town regarding access to the wetlands before he agreed to reduce the price. In his own words, he arrived at the sale price by “intuition.”

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15 Mass. L. Rptr. 644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-costello-masssuperct-2002.