Justia Contracts Opinion Summaries

Articles Posted in Massachusetts Supreme Judicial Court
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In a dispute between tenured faculty members and Tufts University, the faculty members alleged that the university's policies requiring them to cover half of their salary with external research funding and reducing their laboratory space violated their tenure rights to economic security and academic freedom. These policies, instituted between 2016 and 2019, led to a decrease in the plaintiffs' salaries and full-time status, and their laboratory space was reduced or closed entirely when they failed to meet the external funding requirements.The Supreme Judicial Court of Massachusetts noted that tenure contracts are defined by their specific terms and must be understood in the context of the academic community's norms and expectations. The court found that the term "economic security" in the tenure contracts was ambiguous and further evidence was needed to determine whether the reductions in salary and full-time status violated the economic security provided in the tenure contracts. However, the court concluded that neither economic security nor academic freedom guaranteed the plaintiffs specific lab space.The court reversed the lower court's judgment in favor of Tufts on the compensation policies, remanding the case for further proceedings. However, it affirmed the lower court's judgment that the laboratory space guidelines did not violate the plaintiffs' tenure rights. The court also left unresolved the plaintiffs' claims under the Wage Act, as it was dependent on the outcome of the compensation dispute. View "Wortis v. Trustees of Tufts College" on Justia Law

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The dispute arose from an agreement between Columbia Plaza Associates (CPA) and Northeastern University regarding the development of a parcel of land in Boston. The contract stipulated that the developer for each phase of the project would be Northeastern or an affiliated entity, which could include CPA. The contract also specified that the developer of the garage parcel would be a joint venture between Northeastern and CPA.CPA claimed that Northeastern violated the agreement when it sought to develop a subparcel unilaterally and repudiated CPA's rights to that subparcel. CPA also argued that Northeastern's communication with a governmental agency amounted to a deceptive business practice.The court held that the agreement did not grant CPA development rights in any of the subparcels except for the garage parcel. The court also found no proof of an enforceable promise by Northeastern to build a hotel with CPA on the disputed subparcel. The court thus ruled in favor of Northeastern on all counts, including CPA's claims for breach of contract, breach of the implied covenant of good faith and fair dealing, intentional interference with advantageous economic relations, unjust enrichment, commercial fraud, unfair or deceptive business practices, and requests for declaratory and injunctive relief.The court further held that Northeastern was entitled to attorney's fees under the anti-SLAPP statute because it successfully dismissed CPA's claim of commercial fraud, which was based solely on Northeastern's petitioning activity. The court did not find CPA's claim to be a SLAPP suit. View "Columbia Plaza Associates v. Northeastern University" on Justia Law

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The Supreme Judicial Court affirmed the decision of the superior court judge dismissing the underlying declaratory judgment complaint in this declaratory judgment action regarding the scope of the Department of Housing and Community Development's (DHCD) authority under Mass. Gen. Laws ch. 121B, 7A, holding that dismissal was warranted.Plaintiffs - location housing authorities (LHAs) of various cities and towns, current and former executive directors of LHAs and others - sought a judgment declaring that DHCD exceeded its authority under Mass. Gen. Laws ch. 121B, 7A by promulgating guidelines that govern contracts between an LHA and its executive director and making compliance with the guidelines a requirement to obtain contractual approval from DHCD. A superior court judge allowed DHCD's motion to dismiss. The Supreme Judicial Court affirmed, holding that LHAs have authority to hire executive directors and "determine their qualifications, duties, and compensation, under Mass. Gen. Laws ch. 121B, 7. View "Fairhaven Housing Authority v. Commonwealth" on Justia Law

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The Supreme Judicial Court held that an agreement entered into between Plaintiff Anthony Gattineri and Defendants Wynn MA, LLC and Wynn Resorts, Limited (collectively, Wynn) in San Diego California (the San Diego agreement) was unenforceable for reasons of public policy.Wynn entered into an option contract with FBT Everett Realty, LLC (FBT) to purchase a parcel of property. As Wynn's application for a casino license proceeded, the Massachusetts Gaming Commission discovered that there was a possibility of concealed ownership interests in FBT by a convicted felon with organized crime connections. In response, FBT lowered the purchase price for the parcel. The Commission approved the amended option agreement. Gattineri, a minority owner of FBT, opposed the price reduction and refused to sign the certificate required by the Commission. Gattineri alleged that at the San Diego meeting Wynn had agreed to pay Gattineri an additional $19 million in exchange for Gattineri signing the certificate. After the Commission awarded Wynn a casino license Gattineri brought suit claiming breach of the San Diego agreement because Wynn never paid Gattineri the promised $19 million. The Supreme Judicial Court held (1) the agreement was deliberately concealed from the Commission and inconsistent with the terms approved by the Commission; and (2) enforcement of such a secret agreement constituted a clear violation of public policy. View "Gattineri v. Wynn MA, LLC" on Justia Law

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The Supreme Judicial Court affirmed the judgment of the superior court in favor of Cummings Properties, LLC in this suit brought to enforce Darryl Hines's obligations as guarantor of a commercial lease, holding that Hines failed to meet his burden to prove that the amount provided for in the lease's liquidated damages clause was an unreasonable forecast of damages at the time the lease was signed.At issue was whether a liquidated damages clause in the lease was unenforceable where Hines's company defaulted on the rent but Cummings was able to relet the property. The trial judge found in favor of Cummings and awarded it the balance owed under the lease's liquidated damages clause. The appeals court reversed, determining that the liquidated damages provision was an unenforceable penalty because it did not account for the possibility that Cummings could, in mitigation of Hines's breach, relet the premises and collect rent. The Supreme Judicial Court affirmed, holding (1) this Court has never required that the amount of a liquidated damages clause take into account any future rents collected from a new tenant to be enforceable; and (2) Hines failed to meet his burden to show that the liquidated damages clause was unenforceable. View "Cummings Properties, LLC v. Hines" on Justia Law

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The Supreme Judicial Court affirmed the judgment of the superior court judge granting summary judgment in favor of BSC Companies, Inc., BSC Group, Inc., and the companies' president (collectively, BSC) in this action brought by BSC's former employees alleging claims under the Prevailing Wage Act, Mass. Gen. Laws ch. 149, 26-27H, holding that the contracts at issue were not governed by the Act, and BSC was not required to pay its employees a prevailing wage pursuant to the contracts.At issue were two professional engineering services contracts awarded by the Department of Transportation (MassDOT) to BSC. The contracts were not competitively bid and were not awarded to the lowest bidder, unlike contracts for public works construction projects governed by the Act. Further, the contracts did not specify that BSC's employees would be paid at least a prevailing wage determined by the Department of Labor Standards. The superior court judge granted summary judgment to BSC. The Supreme Court affirmed, holding that Plaintiffs were not entitled to a prevailing wage for their work under the professional services contracts. View "Metcalf v. BSC Group, Inc." on Justia Law

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The Supreme Judicial Court held that in the instant cases, where the decedents had no right to bring a cause of action for the injuries that caused their deaths at the time that they died as a result of the running of the statute of limitations on the decedents' underlying tort and breach of warranty claims, Plaintiffs, as personal representatives of the decedents' estates, had no right to bring wrongful death actions based on those injuries.The Supreme Judicial Court affirmed the judgments of the lower courts dismissing these separate actions for wrongful death under Mass. Gen. Laws ch. 229, 2. Both superior court judges ruled that, because wrongful death recovery is derivative of a decedent's own cause of action, the underlying wrongful death claims were precluded, as each decedent could not have brought claims based on the injuries that caused his death had he survived. The Supreme Judicial Court affirmed, thus following the majority approach precluding recovery for wrongful death where the statute of limitations on the decedent's underlying claims ran before the decedent's death. View "Fabiano v. Philip Morris USA Inc." on Justia Law

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The Supreme Judicial Court affirmed the judgment of the county court denying Petitioner's petition for relief under Mass. Gen. Laws ch. 211, 3, holding that the single justice did not err or abuse his discretion in denying relief.Petitioner was awarded monetary damages after a jury trial on a breach of contract claim against Respondent. The appellate division affirmed. Petitioner later moved for the appointment of a special process server to conduct a sale of Respondent's real property in order to satisfy the amended judgment and execution. Thereafter, Respondent presented a check for the execution amount plus postjudgment interest. Petitioner refused to accept payment and continued to litigate its motion. A judge declined to take action and ordered that further accrual of postjudgment interest would be tolled. Petitioner moved to vacate the judge's tolling ruling, but the trial court declined to rule on the motion. Petitioner then filed this petition requesting relief from the tolling order. The single justice denied the petition. The Supreme Judicial Court affirmed, holding that Petitioner was not entitled to relief. View "Suburban Electric Contracting, Inc. v. Ozdemir" on Justia Law

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In this case concerning the term "physical abuse" as used in an "abuse and molestation" policy exclusion the Supreme Judicial Court reversed the order of the superior court granting summary judgment in favor of Insurer on its action for declaratory relief, holding that the abuse and molestation exclusion did not exempt coverage under the circumstances of this case.The homeowners' insurance policy at issue precluded coverage under a policy exclusion exempting coverage for "[b]odily injury...arising out of sexual molestation, corporal punishment or physical or mental abuse." Insured initiated an unprovoked attack on Leonard Miville by punching and kicking him repeatedly. When Insurer denied coverage Miville commenced an action against Insured. Insurer brought this action seeking a judgment declaring that it had no duty to defend or indemnify Insured for the personal injury claims. The judge granted summary judgment for Insurer. The Supreme Judicial Court reversed, holding that a reasonable insured would not expect the abuse and molestation exclusion to preclude coverage for the incident. View "Dorchester Mutual Insurance Co. v. Miville" on Justia Law

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The Supreme Judicial Court affirmed the order of the trial judge granting the motion for judgment on the pleadings filed by the New England Police Benevolent Association, Inc., Local 192 (NEPBA), denying the city of Chelsea's motion for judgment on the pleadings, and confirming the underlying arbitration award in this labor dispute, holding that the trial court did not err in confirming the arbitration award.After NEPBA replaced another union as the exclusive bargaining representative for the emergency dispatchers in the city, NEPBA sought to arbitrate a grievance regarding an emergency dispatcher's termination following the change in union representation. While the NEPBA and city bargained to a new contract, employees had been working under the city's prior collective bargaining agreement (CBA) with the former union. Because the CBA contained an arbitration provision, the arbitrator ruled that the dispute was arbitrable. The superior court confirmed the decision. The Supreme Judicial Court affirmed, holding that the dispute was arbitrable. View "City of Chelsea v. New England Police Benevolent Ass'n, Local 192" on Justia Law