Winlake II, Inc. v. Mercier

21 Mass. L. Rptr. 166
CourtMassachusetts Superior Court
DecidedMay 3, 2006
DocketNo. MICV200500043C
StatusPublished
Cited by1 cases

This text of 21 Mass. L. Rptr. 166 (Winlake II, Inc. v. Mercier) 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
Winlake II, Inc. v. Mercier, 21 Mass. L. Rptr. 166 (Mass. Ct. App. 2006).

Opinion

Smith, Herman J., J.

INTRODUCTION

Plaintiffs, Winlake II, Inc. (“Winlake II”), doing business as Curves for Women, Arlington (“Arlington Curves”), and Kathleen Hennessy (“Hennessy”), filed this action against Defendant, Donald H. Mercier (“Mercier”), individually and as trustee of the Maples Really Trust (“Maples Realty”), seeking damages for the alleged misconduct of Mercier in the execution of a lease agreement for a commercial property in Arlington, Massachusetts (“Arlington”). The plaintiffs allege that Mercier breached the implied covenant of good faith and fair dealing (Count I), committed fraud (Count II) and violated G.L.c. 93A (Count III) by misrepresenting and failing to disclose material facts related to the condition of the real property. This matter is now before this Court on the defendants’ motion for summary judgment pursuant to Mass.R.Civ.P. 56 as to Counts I, II and III. For the reasons discussed hereinafter, Mercier’s motion for summary judgment on all counts is ALLOWED.

BACKGROUND

The relevant facts, either undisputed or taken in the light most favorable to the plaintiffs, are as follows. Hennessy is an officer, employee and authorized representative of Winlake II, which owns and operates Arlington Curves. Hennesy also has served as an officer of Winlake I, Inc., which owns a Curves for Women (“Curves”) franchise in Melrose, Massachusetts (“Melrose Curves”). Hennessy has an ownership interest in both Winlake I and Winlake II and has acquired a partial ownership interest in a Curves in Ireland. She is employed as the manager of Arlington Curves and Melrose Curves, and has been employed as an office manager.1

In July 2002, Hennessy began to search for commercial properties in and around Arlington in which to locate a Curves franchise. Hennessy recently had opened Melrose Curves. Hennessy found a suitable commercial space located at 799-801 Massachusetts Avenue, Arlington, Massachusetts (“the Premises”), which had been advertised for lease. Subsequently, Hennessy contacted Mercier to discuss the potential occupancy of the Premises. Maples Realty, of which Mercier is the sole trustee, is the title owner of the Premises.

Hennessy initially contacted Mercier to inquire into the availability and readiness of the Premises for a fitness center. Mercier indicated that the Premises was ready for occupancy save some cosmetic restorations. At that time, the Premises had been leased as a newspaper distribution facility. Thereafter, Hennessy and her son, William Stroud (“Stroud”), the president of Winlake II, engaged in several conversations with Mercier concerning the Premises, during which Stroud and Hennessy informed Mercier that the Premises needed to accommodate a fitness center with minimal renovations. Mercier again stated that the Premises required only cosmetic improvements. Mercier also indicated that the Premises, at that time, complied with applicable state building and fire code regulations. During these conversations, Mercier did not suggest that he possessed specific knowledge of the requirements or conditions of the Premises for a fitness center.

In late July 2002, Hennessy decided to inspect the Premises with Mercier. During her inspection of the Premises, Hennessy did not examine the electrical, plumbing, heating, ventilating, and/or cooling systems within the Premises. Nor did Hennessy inquire into the state of the Premises’ mechanical systems. Instead, Hennessy conducted a cursoiy visual inspection of the Premises. Subsequent to that initial inspection, Hennessy and Stroud examined the Premises with Mercier. During that inspection, Mercier reiterated that the Premises required only superficial modifications. Hennessy and Stroud observed that the Premises would require painting, carpeting and a new toilet facility, for which Hennessy and Stroud deter[168]*168mined that the cost would total less than $5,000.00. Hennessy and Stroud asked Mercier whether he would pay for such repairs; Mercier declined to do so. Hennessy and Stroud also discussed with Mercier the proposed terms of the lease. Hennessy and Stroud neither inspected nor discussed with Mercier the condition of the mechanical or electrical systems of the Premises at that time. Following that second inspection, Hennessy returned to the Premises with a general contractor.2 Hennessy and the general contractor neither examined nor questioned the functionality of the mechanical systems of the Premises at that time. Mercier did not refer to the electrical or mechanical systems of the Premises during any of the above-described inspections.

On or about July 23, 2002, Hennessy, individually, entered into a Standard Form Commercial Lease (“Lease Agreement”) with Maples Realty for the Premises. The initial term of the lease commenced on October 1, 2002 and terminated on September 30, 2005. Under the Lease Agreement, Hennessy agreed to pay to Maple Realty an annual rent of $21,600.00 for the initial term of the lease, with an option to extend the lease for an additional two years at an annual rent of $24,000.00. The Lease Agreement provides that Hennessy shall bear the expense of any alterations to the Premises. The Lease Agreement further states that Hennessy agreed to maintain the condition of the Premises and that the Premises was in “good order” at the time of the execution of the Lease Agreement. The expressed purpose of the Lease Agreement is to provide Winlake II with a physical location within which to operate a Curves franchise.

In October 2002, after minor renovations to the Premises had commenced and in anticipation of the opening of Arlington Curves, Hennessy contacted the Arlington Inspectional Services Department (“Inspectional Services”), which enforces Massachusetts’ building, wiring, plumbing, and fuel codes as well as Arlington’s zoning bylaws. Mike Byrne (“Byrne”), an Inspectional Services employee, informed Hennessy that a Certificate of Occupancy was required to open Arlington Curves, the issuance of which was contingent upon a compliance inspection of the Premises. Byrne further stated that he could not directly speak to Hennessy, but could communicate with a contractor regarding the Premises. Accordingly, Hennessy hired Martin Conneely (“Conneely”) of Conneely Contracting, Inc. to facilitate the inspection and permit processes.

At some point thereafter, Inspectional Services conducted an inspection of the Premises. Conneely then met with Byrne to discuss the results of the inspection. Byrne informed Conneely that the Premises would require additional repairs and renovations to comply with existing commercial building codes. Subsequently, Conneely notified Hennessy of the additional work required before a Certificate of Occupancy could be issued for the Premises. That work entailed, among other renovations, repair of the electrical, ventilation, and fire detection systems as well as plumbing and drainage upgrades. Conneely estimated the cost of the repairs at $19,000.00.

Upon learning of the estimated cost of the repairs, Hennessy contacted Mercier to request that he pay for such repairs. Mercier explained to Hennessy that he would neither pay for nor undertake to repair the Premises. Hennessy then solicited proposals and estimates from general contractors for the necessary repairs. After receiving several proposals, Hennessy hired Whittemore Remodeling (“Whittemore”) to upgrade the Premises. Again, Hennessy requested that Mercier pay for the repairs, and Mercier refused to make any such payment.

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21 Mass. L. Rptr. 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winlake-ii-inc-v-mercier-masssuperct-2006.