Lahlou v. Daley
Lahlou v. Daley
Opinion of the Court
MEMORANDUM
I. Introduction
This action arises out of a contract dispute between Plaintiff Chahine Lahlou and Defendant Gregory Daley. Presently at
II. Background
Sometime around 2008, Plaintiff Lahlou, Defendant Daley, Todd Racioppi, and John Racioppi entered into a business venture in Virginia to open Dunkin Donuts stores.
Around the time of the mediation in the Virginia lawsuit, Daley and Lahlou began to discuss the possibility of Lahlou moving to Connecticut to work for Daley in Connecticut and Rhode Island.
On January 22, 2012, Mr. Thomas, a business partner of Daley, told Lahlou that if Lahlou continued to seek payment from Daley in accordance with the settlement in the Virginia lawsuit, Lahlou should not return to work.
The party seeking summary judgment bears the initial burden of establishing that there is no genuine issue of material fact.
B. Breach of Contract (Count I)
Here, there is no genuine dispute of material fact. The parties, rather, disagree as to the legal question of whether Defendant is barred from asserting a statute of frauds defense. The Massachusetts Statute of Frauds states:
No action shall be brought:
Upon an agreement that is not to be performed within one year from the making thereof;
Unless the promise, contract or agreement upon which such action is brought, or some memorandum or note thereof, is in writing and signed by the party to be charged therewith or by some person there unto by him lawfully authorized.20
Under Massachusetts law, the party against whom enforcement of the contract is sought may be estopped from raising a statute of frauds defense if that party has made a material misrepresentation that the other party relied upon.
(1) A representation or conduct amounting to a representation intended to induce a course of conduct on the part of the person to whom the representation is made. (2) An act or omission resulting from the representation, whether ac*11 tual or by conduct, by the person to whom the representation is made. (3) Detriment to such person as a consequence of the act or omission.22
This court and Massachusetts state courts have found, however, that estoppel only applies in cases where the plaintiff pleads both breach of contract and an additional claim based on fraud or deceit.
Here, during his deposition, Lahlou stated repeatedly that he understood his employment with Daley would be for at least a year-and-a-half,
C. Fraud in the Inducement (Count II)
Because the parties have stipulated to the dismissal with prejudice of Count II, fraud in the inducement, Daley’s Motion of Defendant, Gregory D. Daley, for Summary Judgment Pursuant to Fed.R.Civ.P. 56 [# 35] is DENIED IN PART AS MOOT as it relates to this count.
IV. Conclusion
For the foregoing reasons, Defendant’s Motion of Defendant, Gregory D. Daley, for Summary Judgment Pursuant to Fed. R.Civ.P.56 [# 35] is ALLOWED IN PART, and DENIED IN PART AS MOOT. The Motion is ALLOWED as to Count I and DENIED AS MOOT as to Count II of the Complaint [# 1-1].
The following five motions are DENIED AS MOOT: (1) Motion of Defendant, Gregory D. Daley, in Limine to Preclude Evidence of an Uncollected Certified Letter Sent by Plaintiffs Counsel to Defe[n]dant Relative to Collateral Litigation [# 28]; (2) Motion of Defendant, Gregory D. Daley, in Limine to Preclude Evidence or Testimony Relating to Insurance Coverage [# 29]; (3) Motion of Defendant, Gregory D. Daley, in Limine to Limit Plaintiff to OuUof-Pocket Expenses Relative to His Fraud in the Inducement Count [# 30]; (4) Motion of Defendant, Gregory D. Daley, in Limine to Preclude Plaintiff from Seeking Damages in Excess of Plaintiffs Trial Memorandum [# 31]; and (5) Motion of Defendant, Gregory D. Daley, in Limine to Preclude Evidence Regarding Defendant’s Default Judgment in the Previous Litigation between Defendant and Plaintiff [# 33].
AN ORDER HAS ISSUED.
ORDER
For the reasons set forth in the accompanying Memorandum, this court hereby orders that:
1. Defendant’s Motion of Defendant, Gregory D. Daley, for Summary Judgment Pursuant to Fed.R.Civ.P. 56 [# 35] is ALLOWED IN PART and DENIED IN PART. The Motion is ALLOWED as to Count I and DENIED AS MOOT as to Count II of the Complaint [# 1-1].
2. The following five motions are DENIED AS MOOT:
A. Motion of Defendant, Gregory D. Daley, in Limine to Preclude Evidence of an Uncollected Certified Letter Sent by Plaintiffs Counsel to Defefnjdant Relative to Collateral Litigation [# 28];
B. Motion of Defendant, Gregory D. Daley, in Limine to Preclude Evidence or Testimony Relating to Insurance Coverage [# 29];
C. Motion of Defendant, Gregory D. Daley, in Limine to Limit Plaintiff to Out-of-Pocket Expenses Relative*13 to His Fraud in the Inducement Count [# 30];
D. Motion of Defendant, Gregory D. Daley, in Limine to Preclude Plaintiff from Seeking Damages in Excess of Plaintiffs Trial Memorandum [# 31];
E. Motion of Defendant, Gregory D. Daley, in Limine to Preclude Evidence Regarding Defendant’s Default Judgment in the Previous Litigation between Defendant and Plaintiff [# 33].
3. This case is CLOSED.
IT IS SO ORDERED.
. Chahine Lahlou Dep. 29:6-31:4, Sept. 27, 2011 [#36-2],
. Lahlou Dep. 36:14-16.
. Lahlou Dep. 47:5-16.
. Lahlou Dep. 53:2-4.
. Lahlou Dep. 56:10-11.
. Lahlou Dep. 56:14-16.
. See Lahlou Dep. 62:8-10, 65:9-16.
. Lahlou Dep. 103:4-5.
. Lahlou Dep. 105:3-4.
. Lahlou Dep. 130:24-131:4.
. Lahlou Dep. 170:24-171:4.
. Lahlou Dep. 176:12-17.
. Sanchez v. Alvarado, 101 F.3d 223, 227 (1st Cir. 1996) (quotations and citations omitted).
. Id. (quotations and citations omitted).
. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).
. Hannon v. Beard, 645 F.3d 45, 48 (1st Cir. 2011) (quoting Mulvihill v. Top-Flite Golf Co., 335 F.3d 15, 19 (1st Cir. 2003)).
. See O’Connor v. Steeves, 994 F.2d 905, 907 (1st Cir. 1993).
. Ahem v. Shinseki, 629 F.3d 49, 54 (1st Cir. 2010).
. Walsh v. Town of Lakeville, 431 F.Supp.2d 134, 143 (D.Mass. 2006).
. Mass. Gen. Laws ch. 259, § 1.
. Cohoon v. Citizens Bank, No. 002774, 2000 WL 33170737, at *4 (Mass.Supp. Nov. 11, 2000).
. Shutzer v. S. Rothschild & Co., Inc., No. 05-11486-MLW, 2006 WL 2691692, at *3 (D.Mass. Sept. 19, 2006) (citing Palandjian v. Pahlavi, 614 F.Supp. 1569, 1581 (D.Mass. 1985)).
. See Chmura v. Ingham, MIC Tech. Corp., No. 89-2826-MC, 1990 WL 117917, at *1 (D.Mass. Aug. 3 1990) ("The cases plaintiff relies on to support his estoppel theory deal with claims not only of breach of contract but of fraud and deceit as well.”); see also McTernan v. Haley & Aldrich, Inc., No. 945905, 1995 WL 1146823, at *5 (D.Mass. Sept. 25, 1995) ("Despite the plaintiff’s argument, the court recognizes Chmura v. Ingham, No. 89-2826-Mc (D.Mass. Aug. 1990) as persuasive authority for the proposition that the plaintiff's estoppel theory should only be applied in cases where there are claims of fraud and deceit as well as breach of contract.”).
. Shutzer, 2006 WL 2691692, at *1.
. M.H. Promotion Group, Inc. v. Cincinnati Milacron Inc., No. CIV. A. 96-0832C, 1998 WL 52239, at *6 (D.Mass. Jan. 28, 1998) ("The consequence of this finding is to bar benefit of the bargain damages but permit reliance damages, thereby fully compensating the promisee for all damages resulting from his unfortunate but reasonable reliance on the unkept promises of the promisor but denying him the damages that would have resulted had the written [contract] been executed and breached.”).
. Id. at *6.
. Id. at 6-7.
. See Lahlou Dep. at 98:18-21 ("By long it can be five years, 10 years, 20 years but it was long enough where I’m going to be able to come back.”); Lahlou Dep. 105:3-4 ("It was at least a year and a half to two years.”); Lahlou Dep. 106:17-20 (“He said, 'Chahine, you know these deals are complex. It's going to take at least a year and a half, two years to put this thing together.'"); Lahlou Dep. 110:10-13 (“Yes, we had a firm understanding that I'm going to be employed with him for a long time and it could be a year and a half, two years, five years, that’s what I mean by long term.”); Lahlou Dep. 186:14-17 ("Until we get the stores opened, and by that it’s going to be at least a year to a year and a half. No question about that in my mind on in his mind.”)
. Lahlou Dep. 105:4-8 ("It was never put in writing. There was never something that was put in concrete because he didn't want to make the same mistake—and I quoted him— as Virginia....”).
. Mass. Gen. Laws ch. 259, § 1.
. Lahlou Dep. 105:4-8.
. McTernan, 1995 WL 1146823, at *5.
Reference
- Full Case Name
- Chahine LAHLOU v. Gregory D. DALEY a/k/a Greg Daley d/b/a Daley Management
- Cited By
- 2 cases
- Status
- Published