Goldbaum v. Weiss
Goldbaum v. Weiss
Opinion of the Court
In brief outline, the evidence in this case ran thus. The plaintiff David Goldbaum operated the Café Stella offering Italian ice creams and coffees in leased premises in the Marketplace Center building in the Quincy Market area of Boston. The plaintiff met the defendant Jan Marshall
On the same date, February 5, Goldbaum went to see George Naddaf, a power at Boston Chicken. They discussed Goldbaum’s applying for an option for himself to acquire a franchise for the café premises. On February 15, Goldbaum bought an option on the franchise, paying the stated fee of $10,000 (raised from his private funds from an IRA account).
When Marshall and Weiss learned of Goldbaum’s option, they were both “unhappy” and they let Naddaf know they were. By this date they had power of persuasion: through JMB they were running the two franchises above mentioned, which had become the flagships, the most successful of the twelve or more Boston Chicken franchises then extant. Naddaf knew that Marshall and Weiss were interested in a franchise location in downtown Boston and expected to be told about or have “first dibs” on an opportunity around Quincy Market.
Hard upon Marshall and Weiss’s protest, Naddaf invited Goldbaum to headquarters on February 21. Sometime between February 5 and 21 Marshall had rejected flatly the idea of a “partnership” for the café spot, but Naddaf now encouraged the idea: Goldbaum, he noted, had the location (in fact it was merely 600 square feet) and Weiss (or Marshall and Weiss) the money. Naddaf introduced Goldbaum to Weiss on the telephone and they spoke of forming a corporation to acquire a franchise with Goldbaum, Marshall, and Weiss in effect sharing equally in the profits and Goldbaum receiving a yearly amount for his services as manager. An undated note by Goldbaum set out his understanding of the scheme discussed.
On February 27, 1991, Goldbaum entered upon a training program for intending franchise operators, which he duly completed. Now began a welter of document drafting by counsel retained by Goldbaum and Marshall (some reproduced in the voluminous record herein), and talks went on to settle points in the relations inter se of Goldbaum, Marshall, and Weiss; to fix the terms of the franchise besides the boilerplate; and to arrange the provisions of the lease to the proposed “subchapter S”
Goldbaum commenced the present action in Superior Court on March 24, 1994, naming Marshall, Weiss, Naddaf, and Boston Chicken as defendants. The latter two were voluntarily dismissed from the action (in July, 1995). After trial, to be summed up infra, judgment entered on a claim for unfair or deceptive practice under G. L. c. 93A, § 11, against Marshall and Weiss. Weiss appeals; Marshall did not notice an appeal.
1. The plaintiff’s theories of his case were the following (as summarized in his counsel’s closing argument to the jury). First alternative: there was in substance an enforceable contract between the plaintiff Goldbaum on one side and the defendants Marshall and Weiss on the other by which the three, through a subchapter S corporation, were to open and operate a Boston Chicken franchise at the café location; the defendants committed a breach of the contract by refusing to “close” and should be held liable for the breach. Second alternative: the plaintiff had an advantageous business opportunity represented by his paid-for franchise option secured on February 15, 1991, on which he proposed to go forward alone. The defendants intentionally interfered with this prospect by putting pressure on Naddaf, resulting in Naddaf’s recommending a three-way “partnership.” The defendants acquiesced in the proposition, played along with it, and then dropped it. They never intended to carry through. The defendant Marshall, in particular, acted a duplicitous part. The plaintiff was led during this period to abandon any efforts to pursue his franchise option on his own behalf.
2. The case was submitted to the jury on special questions, and their answers came in substance to the following. There was no perfected, enforceable contract among the three (Questians 1, 2). (Indeed, as one reads the record, there were material matters still outstanding, not agreed to, when the defendant
3. The trial judge denied the defendants’ motions for a directed verdict at the close of all the evidence,
4. On the record made, the judge’s holding is supported. The defendants in their motions for judgment n.o.v. tried to avert this result by invoking the proposition that certain relationships, including a relationship of partnership or joint venture, may in varying circumstances be characterized as “private,” i.e., not in an arm’s length or competitive mode, and thus considered outside the bounds of § 11. See Linkage Corp. v. Trustees of Boston Univ., 425 Mass. 1, 23 n.33, cert. denied, 522 U.S. 1015 (1997); Gilleran, The Law of Chapter 93A § 2.18 (1989 & Supp. 1999). If this proposition were supposed to apply to the instant facts, then the common law breaches that may have occurred between the parties to the relationship could be treated on their own terms without reference to § 11. But then the three-year statute of limitations would be reinstated and applied to the interference claim and the defendants (now Weiss) would be relieved of all liability.
It is unfortunate and should be fatal that the defendants did not bring the proposition on which they now rely into the trial proper and make it the subject of appropriate additional special questions following upon relevant instructions. The judge in her memorandum of decision referred to the defendants’ argument by acknowledging that the parties “contemplated” a joint venture, meaning the events after February 21 or conceivably, but not likely, all the events following Goldbaum’s first meeting with Marshall. But, without further specific discussion of the defendants’ contention in her memorandum, the judge applied c. 93A, § 11. We think this disposal of the defendants’ contentian was correct.
If the defendants deserve to have the contention examined on the record as it now stands, it is seen to be quite inapposite. The torts between coventurers or partners or the like excluded from
5. The defendants’ penchant for delaying their shots until the battle is over appears again in the remaining argument of the defendant Weiss’s brief on appeal, which considers the measure of damages against him assuming the plaintiff succeeds under § 11. The expert evidence on the part of the plaintiff was directed to justifying and calculating the profits to be expected from the operation of a Boston Chicken franchise in the café space, with a one-third split to the plaintiff.
So ordered.
Marshall has not appealed from the judgment,
Formerly known as New Boston Chicken, Inc.
After June 26, 1991, Goldbaum tried to find a way with one Dan Posternak to exercise the option, but the effort failed, and the option expired in 1992.
Weiss asked the judge to put the question about unfair practices separately as to Marshall and himself but did not persist in the request.
There is now some complaint by the plaintiff that the motions did not specify grounds (apart from a reference to the limitations period) — see Mass. R.Civ.P. 50(a), 365 Mass. 814 (1974) (“A motion for a directed verdict shall state the specific grounds therefor”) — but no objection on this score was taken at the time. See Soares v. Lakeville Baseball Camp., Inc., 369 Mass. 974, 975 (1976); Michnik-Zilberman v. Gordon’s Liquor, Inc., 390 Mass. 6, 9 n.3 (1983).
In response to Question 10, the jury found damages of $40,000, which the judge under the statute doubled, adding attorney’s fees.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.