Wonson v. Ralph Leonard Associates, Inc.

1992 Mass. App. Div. 75
CourtMassachusetts District Court, Appellate Division
DecidedApril 21, 1992
StatusPublished

This text of 1992 Mass. App. Div. 75 (Wonson v. Ralph Leonard Associates, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wonson v. Ralph Leonard Associates, Inc., 1992 Mass. App. Div. 75 (Mass. Ct. App. 1992).

Opinion

Sherman, PJ.

This is an action in contract and tort brought by plaintiff Arthur F. Wonson (“Wonson”) to recover damages for defendant Ralph Leonard Associates’ (“Leonard”) alleged breach of obligations owed to the plaintiff as his agent and real estate broker.

The sole issue presented by this appeal is the propriety of the trial court’s allowance of the defendant’s motion to dismiss brought on the grounds that the action was barred by the Statute of Limitations, and that the defendant was irremediably prejudiced by the plaintiffs delay in amending his complaint to add the defendant as a party six years and nine months after the events in question.

The plaintiffs claims arise out of the 1983 failure of a real estate transaction involving plaintiff Wonson, as trustee of the seller, one Seymour E. Greenfield (“Greenfield”) as prospective purchaser, Century 21 Yankee Realty as selling broker and defendant Ralph Leonard Associates as the listing broker. All that now emerges clearly as to the events of 1983 is that Greenfield made a written offer to purchase the property on July 21, 1983 and paid a deposit of $500.00. Wonson accepted the offer, but did not do so in writing, allegedly in the expectation that he and Greenfield would execute a formal purchase and sale agreement on July 29, 1983. Various oral communications then ensued in the interim eight day period between the brokers, Wonson and Greenfield concerning time extensions, house inspections, contract execution, etc., the details of which are now vigorously disputed by the parties. Greenfield ultimately refused to sign a purchase and sale agreement on July 29, 1983 and Wonson responded by initiating suit.

The plaintiff s original action was against Greenfield only and was filed in the Essex Superior CourtDepartment of theTrial Courton March 25,1985forbreach of contract to purchase real estate. In his answer and counterclaim, Greenfield denied that there had been any contract between the plaintiff and him, but failed to plead affirmatively the Statute of Frauds. Prior to the commencement of the action and again on April 24, 1985, plaintiffs counsel solicited the assistance of Ralph Leonard Associates, as plaintiffs former broker, in preparing his case against Greenfield and in responding to Greenfield’s discovery requests which included interrogatories and requests for production of documents. At plaintiff s request, Leonard forwarded copies of its office telephone log and all documents pertaining to Greenfield which Leonard still had in its possession. In his letter of April 24,1985, plaintiff s counsel also informed Leonard of Greenfield’s counterclaim allegation that Leonard had made false representations to him, and stated that “Arthur [Wonson] and I are certain that no misrepresentations were made and I shall endeavor to protect you from any unwarranted accusations by Mr. Greenfield.”

[76]*76The Superior Court dismissed Wonson’s action pursuant to Mass. R. Civ. P., Rule 41(b) (1) on February 28, 1989. Wonson filed amotion to revoke said order on January 12, 1990, together with a certificate of readiness which, despite the absence of any discovery action by Wonson, attested that all pleadings and discovery had been completed. The order of dismissal was vacated, and the action was transferred to the Lynn Division of the District Court Department on March 14, 1990.

On April 3, 1990, Wonson filed a Dist./Mun. Cts. R. Civ. P., Rule 15 motion to amend his complaint by adding Ralph Leonard Associates as a party defendant. Said motion was allowed with no prior notice to Leonard and thus no opportunity for Leonard to object.

The amended complaint alleged that defendant Ralph Leonard Associates, in violation of its obligations to plaintiff Wonson as his agent-broker, furnished the plaintiff with incorrect information and advice, failed to inform the plaintiff correctly with respect to communications received from Greenfield, and advised Greenfield as to how he could avoid any obligation to purchase real estate from the plaintiff.

Leonard was served with a summons and copy of the amended complaint on May 25, 1990. On May 30, 1990, the plaintiff filed a stipulation dismissing defendant Greenfield from the action.

The new and sole remaining defendant, Leonard, filed an answer2 admitting that it had acted as plaintiffs real estate broker and agent, but denying any breach of obligations owed to the plaintiff. By way of affirmative defense, Leonard asserted, inter alia, that it was prejudiced by the plaintiffs delay of six years and nine months in bringing an action against it.

On February 22, 1991, the defendant filed a motion to dismiss together with a supporting affidavit claiming that it had been added to this action after the expiration of that period of time when an original action against it would have been barred by the Statute of Limitations; and that the plaintiffs undue delay in adding it as a party defendant prejudiced its ability to prepare a proper and sufficient defense to the plaintiffs claims.

After hearing, the District Court judge issued a memorandum of decision on March 25, 1991 allowing the defendant’s dismissal motion. The court subsequently denied, after hearing, plaintiffs motionsfor reconsideration, amendment of findings and relief from the court’s judgment and order.

The plaintiff now claims to be aggrieved by the court’s allowance of the defendant’s motion to dismiss and by its subsequent denials of plaintiffs motions.

l.Thefirst ground asserted in the defendant’s motion for dismissal is that the action against it, commenced six years and nine months after the plaintiffs claim arose, was barred by the Statute of Limitations. The short answer to this contention is that the plaintiffs amendment of his complaint to add the defendant as a party “related back” to the plaintiff s original Superior Court complaint against Greenfield which was filed within the applicable limitations period. Rule 15(c) of the Dist./Mun. Cts. R. Civ. P. provides:

Whenever the claim or defense asserted in the amended pleading arose out of the conduct, transaction or occurrence setforth or attempted to be set forth in the original pleading, the amendment (including an amendment changing a party) relates back to the original pleading.

In interpreting Rule 15 (c) in 1987, the Supreme Judicial Courtheld in Bengar v. Clark Equip. Co., 401 Mass. 554 (1987), that motions to amend should be liberally allowed [77]*77unless the amendment proposed to add a party after the period of limitations for an independent action against such party had expired. The Legislature responded by enacting Ch. 141 of the Acts of 1988,which amended G.L.c. 231, §51 to read as follows:

In all civil proceedings, the court mav at any time allow amendments adding apartv. discontinuing as to aparty or changing the form of action, and may allow any other amendment in matter of form or substance in any process, pleading or proceeding which may enable the plaintiff to sustain the action for the cause or for recovery for the injury for which the action was intended to be brought or enable the defendant to make a legal defense. Any amendment allowed pursuant to this section or pursuant to Massachusetts Rules of Civil Procedure shall relate to the original pleading [emphasis supplied].3

The 1988 statute was intended by the Legislature to overrule the Bengar case, Wood v. Jaeger Sykes, Inc., 27 Mass. App. Ct.

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Bluebook (online)
1992 Mass. App. Div. 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wonson-v-ralph-leonard-associates-inc-massdistctapp-1992.