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DSF Investors, LLC v.
Lyme Timber Co., 19 Mass. L. Rep. 409, 2005 Mass. Super.
LEXIS 282 (May 11, 2005) (Botsford, J.). |
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Lyme Timber Company asserted in a
counterclaim that the plaintiffs had committed unfair
and deceptive acts by falsely representing that DSF
would include Lyme as a partner in a building
development project in Cambridge. The Court previously
awarded summary judgment to the DSF on the Lyme’s
counterclaim of intentional misrepresentation, finding
that Lyme had not relied upon the challenged statements.
A term sheet between the parties expressly stated that
there would be no binding agreement between the parties
unless they executed a written contract. Because
reliance is not an element of a Chapter 93A claim,
however, the Court separately considered whether |
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Lyme could prove damages on its Chapter
93A claim.
Lyme sought the benefit of its alleged
bargain as its measure of damages and declined to offer
reliance damages. The Court held that where the term
sheet disavowed any partnership, the parties negotiated
for months, and Lyme ultimately did not invest in the
project, the only losses it could reasonably have
incurred were the value of its services and advice while
laboring under the alleged deception.
Benefit-of-the-bargain damages would be disproportionate
to this loss. Because Lyme was not entitled to
benefit-of-the-bargain damages and declined to pursue
reliance damages, the Court entered summary judgment on
its Chapter 93A claim.
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