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Vespers Realty Advisors, Inc. v. Binswanger Management
Corporation, 2007 WL 867085 (Mass. Super.)
(Feb. 1, 2007) (Gants, J.). |
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In this case, defendants moved for
summary judgment after the court held that the dispute
resolution provision of a contract was unenforceable.
The gist of defendants’ argument was that the
now-invalid provision could not reasonably be severed
from the contract, and that the entire agreement must be
therefore be considered void. Judge Gants disagreed.
The dispute resolution provision
purportedly permitted the defendants to act as
arbitrator and obtain judicial enforcement of its
findings, even if those findings appeared to be
erroneous, inconsistent, or unsupported by the record.
Id. at *1. The court, however, did not believe
that a provision granting |
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defendants
unfettered authority to review disputes should be deemed
essential to the larger contract. To the contrary,
“every contract in Massachusetts has an implied covenant
of good faith and fair dealing … [t]herefore, BOM
implicitly already agreed that these referral disputes
must be decided fairly.” Id. at *2. Severance of
the offending provision eliminated only defendants’
power “to have those disputes decided solely by itself.”
Id. Defendants had overreached by seeking to make
themselves the sole arbitrator of disputes, and Judge
Gants would not “allow the unfairness of BOM winning by
overreaching.”
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