Waste Management of Rhode Island, Inc. v. PennAtlantic Group, Inc.

13 Mass. L. Rptr. 642
CourtMassachusetts Superior Court
DecidedAugust 14, 2001
DocketNo. 996017
StatusPublished

This text of 13 Mass. L. Rptr. 642 (Waste Management of Rhode Island, Inc. v. PennAtlantic Group, Inc.) 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
Waste Management of Rhode Island, Inc. v. PennAtlantic Group, Inc., 13 Mass. L. Rptr. 642 (Mass. Ct. App. 2001).

Opinion

Brassard, J.

The plaintiff, Waste Management of Rhode Island, Inc. (“Waste Management") alleges that the defendant, PennAtlantic Group, Inc. (“PennAtlantic”) materially breached its waste brokering contract with Waste Management by refusing to pay invoices for landfill spaces purchased on account (Count I). PennAtlantic has filed a counterclaim alleging that Waste Management breached a verbal contract between PennAtlantic and Waste Management for the hauling of processed demolition material (Count I).

The court now has before it cross motions for summary judgment. Waste Management contends that there is no dispute as to the amount of money PennAtlantic owes under the terms of the waste brokering contract, and that the alleged verbal agreement is void under the Statute of Frauds, and therefore it is entitled to judgment as a matter of law as to its claim and PennAtlantic’s counterclaim. In opposition, Penn Atlantic argues that summary judgment as to Waste Management’s claim must be denied because the amount owed under the waste brokering contract remains disputed. PennAtlantic also moves for summary judgment on its counterclaim, contending that the Statute of Frauds is inapplicable and the verbal contract is valid. Having heard the parties and examined the papers, Waste Management’s motion for summary judgment as to Count I is ALLOWED in part and DENIED in part. Both Waste Management and PennAtlantic’s motions for cross summary judgment on the counterclaim are DENIED.

BACKGROUND

Count I: Breach of Contract

Waste Management is a corporation that sells space at its landfills to waste haulers and waste brokers by charging per ton of waste. PennAtlantic’s business involves buying space at landfills and reselling that space to waste haulers at a higher price.

From June of 1998-February 1999, PennAtlantic maintained an account with Waste Management whereby PennAtlantic purchased landfill space and resold that space to third parties. Waste Management invoiced PennAtlantic on a weekly basis for those purchases. In 1998, PennAtlantic notified Waste Management of various discrepancies in Waste Management’s invoices and billing procedures. Waste Management, however, did not correct these errors.

Count I Counterclaim: Breach of Contract

PennAtlantic contends that it entered into a separate, verbal contract with Waste Management for the hauling of processed demolition material from Rhode Island to New Hampshire. According to PennAtlantic, the parties agreed to a long-term hauling contract under which PennAtlantic would be provided with 3 to 6 loads per day for a period of up to 18 months. PennAtlantic claims that because it relied on the verbal contract, it refused offers for other jobs, purchased equipment, and obtained permits totaling $190,000.00. PennAtlantic contends that Waste Management breached its obligations under the oral contract by failing to provide the contracted number of loads of material each day and by failing to pay PennAtlantic for the work performed thereunder.

Waste Management maintains that a verbal contract never existed. Alternatively, Waste Management contends that even if a verbal agreement did exist, it was an at-will contract that did not specify the amount of time or number of loads, and therefore Waste Management was not obligated to provide PennAtlantic with promised work. Waste Management further contends that it contracted with PennAtlantic to provide services as a waste broker, not as a waste hauler.

DISCUSSION

This court grants summary judgment where there are no genuine issues of material fact and where the summary record entitles the moving party to judgment as a matter of law. See Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community [643]*643Nat'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 that the summary judgment record entitles the moving party to judgment as a matter of law." See Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). “The- nonmoving party cannot defeat the motion for summary judgment by resting on its pleadings and mere assertions of disputed facts.” See LaLonde v. Eisner, 405 Mass. 207, 209 (1989). A court may make an order of partial summary judgment if there are facts that appear without substantial controversy and then may direct further proceedings in the case as are just. See Mass.R.Civ.P. 56(d).

I. COUNT I: BREACH OF CONTRACT

Waste Management contends that under its contract with PennAtlantic for waste brokering, PennAtlantic owes $52,703.43 for unpaid invoices. PennAtlantic has conceded that it owes $30,000, but disputes the remaining $22,703.43. Specifically, PennAtlantic asserts that $10,703.43 is attributable to Waste Management’s faulty billing procedures, and $12,000.00 relates to invoices to an account identified as the “E.L. Harvey” account. During the hearing, counsel for Waste Management conceded that PennAtlantic’s liability for amount owed under the E.L. Harvey account could be in dispute.

On these facts, the court ALLOWS Waste Management’s motion for summary judgment as to the $30,000.00. What amount, if any, PennAtlantic is liable for on the remaining $22,703.43 remains for trial.

II. THE COUNTERCLAIM: BREACH OF CONTRACT (COUNT I)

A. Statute of Frauds: G.L.c. 259, §1

Under Massachusetts’ Statute of Frauds, G.L.c. 259, §1, an agreement which cannot be performed within a year must be in writing and signed by the party to be charged. See G.L.c. 259, §1. A defendant may be estopped from pleading the Statute of Frauds as a defense if a plaintiff detrimentally relied upon, or partly performed pursuant to, an oral agreement. See Nessralla v. Peck, 403 Mass. 757, 761-62 (1989). Thus, if a contract within the statute of frauds is performed or partly performed by one party, and the other party refuses to perform, an action may be “maintained by the party performing for the recovery of so much as he has expended in money in execution of the contract on his part.” See Sherburne v. Fuller, 5 Mass 133, 133 (1809); Kidder v. Hunt, 18 Mass. 328, 328 (1823).

Waste Management contends, among other things, that any verbal contract it had with PennAtlantic to perform hauling is void because it was an at-will contract that was not in writing as mandated by the Statute of Frauds. Waste Management further argues that all invoices for completed work were paid in full to PennAtlantic, and therefore there is no issue of part performance. According to PennAtlantic, the Statute of Frauds is not applicable here because (1) Waste Management has not yet fully paid for work completed by PennAtlantic: and (2) the verbal contract did not have to be in writing because it could be performed within one year.

Whether a contract satisfies the Statute of Frauds is generally a question of law for the court. See Schwanbeck v. Federal-Mogul Corp., 412 Mass. 703, 709-10 (1992). However, the issue of part performance is a question of fact to be determined by a jury. See Murphy v. Chichetto, 323 Mass. 11, 14 (1948) (question for jury to decide whether plaintiff accepted check drawn by defendant in part payment pursuant to oral contract); Dutton v. Bennett, 256 Mass. 397, 402 (1926) (whether defendant accepted check in part payment is an issue for a jury).

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Related

Nessralla v. Peck
532 N.E.2d 685 (Massachusetts Supreme Judicial Court, 1989)
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)
Community National Bank v. Dawes
340 N.E.2d 877 (Massachusetts Supreme Judicial Court, 1976)
Cassesso v. Commissioner of Correction
456 N.E.2d 1123 (Massachusetts Supreme Judicial Court, 1983)
Schwanbeck v. Federal-Mogul Corp.
592 N.E.2d 1289 (Massachusetts Supreme Judicial Court, 1992)
Kidder v. Hunt
18 Mass. 328 (Massachusetts Supreme Judicial Court, 1823)
Dutton v. Bennett
152 N.E. 621 (Massachusetts Supreme Judicial Court, 1926)
Murphy v. Chichetto
79 N.E.2d 898 (Massachusetts Supreme Judicial Court, 1948)
Bay Colony Marketing Co. v. Fruit Salad, Inc.
672 N.E.2d 987 (Massachusetts Appeals Court, 1996)

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Bluebook (online)
13 Mass. L. Rptr. 642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waste-management-of-rhode-island-inc-v-pennatlantic-group-inc-masssuperct-2001.