A quarterly summary and brief analysis of significant decisions issued by the Massachusetts Superior Court Business Litigation Session. A service of O’Connor, Carnathan and Mack LLC.
 

December
2006

Volume 3
Number 3
Page 5

 

Summarizing opinions from July 1, 2006 through
Sept. 30, 2006


Messy Intra-Family Partnership Dispute
 


 
 


 


 



 



 

     

O  T  H  E  R      D  E  C  I  S  I  O  N  S  :

Diamond v. Pappathanasi, 2006 Mass. Super. LEXIS 495
(Sept. 22, 2006) (van Gestel, J.).

     

Diamond does not break any new ground, but exemplifies the pitfalls of operating intra-family business ventures without paying attention to formalities. In broad strokes, the parties were partners in a general partnership and two limited part-nerships, all formed for the purpose of engaging in various aspects of the real estate business.

One of the original partners, Paul N. Scangas (“Paul”), died in 1987, and his heirs formed an LLC to hold his various real estate interests. The partnership agreement provided that Paul’s interest

 







 

 

 should have been “deemed withdrawn as of the end of the month during which [he] died.” Based on an incomplete record, however, it appeared that his interest was never liquidated, and instead that his estate continued to receive K-1s and distributions. The Court held that it could not enter summary judgment regarding the status of that interest. With regard to one of the limited partnerships, the Court rejected a purported certificate of amendment to the limited partnership agreement, which failed to comply with the terms of the agreement.

 


 


 



 


 


 

 
     
     
 


Motion to Certify Class Denied in Water Heater Action Where Putative Class Representatives Had Not Suffered Alleged Harm to Class
 

 

 

 

 

 

 

 


 

Besseck v. New England Water Heater Co., 2006 Mass. Super. LEXIS
(July 5, 2006) (van Gestel, J.).

     

Plaintiff purported to represent a class of Massachusetts consumers, allegedly victimized by “class consumer adhesion contracts” for the lease of water heaters. Plaintiffs argued that the defendants had “unilaterally changed material terms” to increase their profits. Id. at *1.

Plaintiffs sought certification as a class both under M.G.L. ch. 93A, § 9 and under Mass. R. Civ. P. 23. The Court noted that the requirements are different under the statute and the rule, and that Section 9’s requirements are less demanding. The

 

 

 

 

 

 

Court held, however, that plaintiffs failed to meet those requirements.

Although plaintiffs asked for a variety of damages arising out of the so-called adhesion contracts, they admitted that they had never signed one of the leases they challenged. Neither of the putative class repre-sentatives had sustained any of the species of damages sought. The Court further held that the proposed class was too broad, in that it pur-ported to include both claimants who had entered into written leases and others who did not.

 

 

 

 

 





 

 
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