Woodruff v. Niles Co.

21 Mass. L. Rptr. 640
CourtMassachusetts Superior Court
DecidedNovember 17, 2006
DocketNo. 053225
StatusPublished

This text of 21 Mass. L. Rptr. 640 (Woodruff v. Niles Co.) 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
Woodruff v. Niles Co., 21 Mass. L. Rptr. 640 (Mass. Ct. App. 2006).

Opinion

Fremont-Smith, Thayer, J.

[641]*641Introduction

This case concerns a properly management company that contracted with an in-house real estate salesperson to show apartments located on several properties in Cambridge and charged a mandatory finder’s fee to any person interested in leasing an apartment on the property. During the relevant time period, the real estate salesperson, defendant Sandra Lee (“Lee”), allowed her license to lapse. Plaintiffs, Rev. H. Bowen Woodruff (“Woodruff’) and Kimberly Genereux (“Genereux”), have brought this action claiming that Lee and the property management company, defendant Niles Company (“Niles"), breached their contracts, misrepresented certain material facts to the plaintiffs, and violated the following statutes: G.L.c. 93A, G.L.c. 186, §15B (“Security Deposit Law”), and G.L.c. 112, §87DDDl/2 (“Licensing Statute”). Genereux also seeks damages for interfering with the quiet enjoyment of her residence.

The undisputed facts as gleaned from the summary judgment record are summarized below.

Defendant Niles was the property management company for several properties located in Cambridge. In June 2001, Lee signed an employment agreement with Niles. The agreement3 described Lee’s position as a “residential real estate salesperson,” and specified that she was not an employee for federal and sales tax purposes. Lee’s compensation was based on a commission she generated from sales and rentals in Cambridge, which she shared with Niles. She was responsible for maintaining her licensing. She worked from a Niles company office and used business cards provided by Niles, which had Niles’s logo and described her title as “broker.”

Lee’s license expired and was not in effect from September 27, 2001 to November 17, 2003. Her license was subsequently revoked in December 2004.

On June 15, 2002, when Lee’s license was expired, Woodruff applied to lease a unit at a Niles-managed property. Although Lee did not assist him in locating the apartment, he was required to pay a finder’s fee of $1,200.00 (one month’s rent) to secure the apartment.4 Woodruff also paid the first and last month’s rent, but he was not required to pay a security deposit.

In May 2003, also during the period when Lee’s license was expired, Genereux applied to lease an apartment at a Niles-managed property. She signed a Rental Brokerage Fee Disclosure Agreement (“Brokerage Agreement") and paid $2,200 (one month’s rent) for assistance in finding the apartment. Genereux claims that Lee only spent ten to twenty minutes showing her a few apartments that she could have seen on her own. Niles required her to pay the finder’s fee in order to secure the apartment. She also paid the first and last month’s rent, but she was not required to pay a security deposit.

At some point, Genereux discovered that Lee was unlicensed and confronted Lee regarding her status. Genereux claims that Lee informed her that her license was under a different name, Sandra Tanco, with license number 130465. That license number did not match the one listed on the brokerage agreement— 64482, and Sandra Tanco was actually another person. Later, another employee told Genereux that Niles had misplaced her finder’s fee check. Genereux stopped payment on her check, which cost her $35 in bank fees. In November 2003 Niles returned her undeposited check for $2,200, and agreed to waive the finder’s fee as a courtesy, although Genereux alleges that payment of the finder’s fee was demanded again.

While Genereux leased the apartment, someone with access to apartment keys was wrongfully entering the Niles-managed apartments. Also, Genereux received several “hang-up phone calls” that she attributed to Lee. Because of this and other incidents at the apartments, she alleged that she feared for her safety and suffered emotional distress. She terminated her lease in April 2006.

Defendants, Lee and Niles, have moved for summary judgment with respect to all of plaintiffs’ claims,5 and plaintiffs, Woodruff and Genereux, have cross moved for partial summary judgment on their c. 186, §15B claim.

Discussion

Summary judgment is appropriate where there is no genuine issue of material fact and the moving party is entitled to a judgment as a matter of law. Mass.R.Civ.P. 56(c); Cassesso v. Comm’r of Corr., 390 Mass. 419, 422 (1983); Cmty. Nat’l Bank v. Dawes, 369 Mass. 550, 553 (1976). The moving party must affirmatively demonstrate that there is no genuine issue of material fact on each relevant issue. Pederson v. Time, Inc., 404 Mass. 14, 17 (1989). A “material” fact is one that might affect the outcome of the suit under the applicable law. Muluihill v. The Top-Flight Golf Co., 335 F.3d 15, 19 (1st Cir. 2003). “Genuine” means that the evidence would permit a reasonable fact finder to resolve the point in favor of the nonmovant. Id.

If the moving party does not bear the burden of proof at trial, it must either: 1) submit affirmative evidence negating an essential element of the non-moving party’s claim; or 2) demonstrate that the non-moving party’s evidence is insufficient to establish its claim. Kourovacilis v. General Motors Corp., 410 Mass. 706, 711 (1991). The non-moving party may not defeat the motion for summary judgment by resting merely on the allegations and denials of its pleadings, but must set forth specific facts with affidavits, deposition testimony, answers to interrogatories, or admissions on file showing that there is a genuine issue for trial. Mass.R.Civ.R 56(e). The court will interpret all inferences in the light most favorable to the non-moving party. Blare v. Husky Injection Molding Sys. Boston, Inc., 419 Mass. 437, 438 (1995).

[642]*642Count I — Breach of Contract

Niles and Lee argue that the plaintiffs cannot establish a breach of contract claim because the defendants performed under the contract so that the plaintiffs received the services they bargained for, namely, assistance in finding housing accommodations. Moreover, the defendants claim that plaintiffs have no damages.

Defendants are correct that there can be no breach of contract if the defendant has fully performed. And once the plaintiff has accepted performance, the plaintiff cannot complain that such performance was a breach. See Cueroni v. Coburnville Garage, Inc., 315 Mass. 135, 139 (1943). Here, Lee provided brokerage services to Genereux. Even though the services were minimal and she was unlicensed, with Genereux the terms of the contract were substantially performed, as she assisted her in finding an apartment and the landlord accepted her application for housing. In short, she received the services that she bargained for. On the other hand, Woodruff contends that he had already chosen his apartment and that Lee did nothing to assist him. In these circumstances, it could be found that Lee’s end of the agreement was not performed, so that he can recover his fee.

As for Genereux, even if fully performed, a contract can be voided for a fraudulent or material misrepresentation, Shaw’s Supermkts, Inc. v. Delgiacco, 410 Mass. 840, 842 (1991), and a contract can be held unenforceable if its performance is illegal. Toed v. Lembo, 325 Mass. 707, 710.

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21 Mass. L. Rptr. 640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodruff-v-niles-co-masssuperct-2006.