Limoliner, Inc. v. Dattco, Inc.
57 N.E.3d 969
Mass.2016Background
- Limoliner, a bus/coaching company, gave Dattco, a repair shop, a verbal request in 2011 to repair a vehicle inverter; Dattco’s written work order omitted the inverter.
- Dattco did not repair the inverter, later declared the vehicle ready, and invoiced Limoliner $10,404; Limoliner refused payment and sought return of the vehicle.
- Limoliner sued in Massachusetts Superior Court alleging breach of contract, negligence, replevin, and a Chapter 93A claim that Dattco violated 940 Code Mass. Regs. § 5.05 by failing to record the customer’s specific repair request in writing.
- Case removed to federal court; after a bench (jury‑waived) trial the magistrate found breach of contract for Limoliner but rejected the § 5.05 regulatory claim as inapplicable to business‑to‑business transactions.
- First Circuit affirmed except it certified the threshold legal question to the Massachusetts Supreme Judicial Court: whether 940 C.M.R. § 5.05 applies when the customer is a business entity.
- The SJC held § 5.05 does apply to business customers and answered the certified question “Yes.”
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 940 C.M.R. § 5.05 (requiring repair shops to record customers’ specific repair requests) applies to transactions where the customer is a business entity | § 5.05 applies to Limoliner because “customer” is defined to include any person or legal entity seeking repairs, and motor‑vehicle regs were promulgated after Chapter 93A was extended to business transactions | § 5.05 was intended for consumer protection only (as in Knapp); language and examples in the regulation show consumer focus | Held: Yes. The regulation’s definitions ("customer" and "person") include corporations and legal entities; absence of an explicit consumer‑only limitation and placement in motor‑vehicle regs indicates applicability to business customers |
Key Cases Cited
- Insurance Co. of the State of Pa. v. Great Northern Ins. Co., 473 Mass. 745 (Mass. 2016) (procedure for using lower‑court record when considering certified question)
- Purity Supreme, Inc. v. Attorney Gen., 380 Mass. 762 (Mass. 1980) (Attorney General authorized to identify business practices violating G. L. c. 93A)
- Knapp Shoes, Inc. v. Sylvania Shoe Mfg. Corp., 418 Mass. 737 (Mass. 1994) (construing Attorney General regulations and limits of consumer protection scope)
- Lease‑It, Inc. v. Massachusetts Port Auth., 33 Mass. App. Ct. 391 (Mass. App. Ct. 1992) (material breach excuses further performance)
- Bulger v. Contributory Retirement Appeal Bd., 447 Mass. 651 (Mass. 2006) (inferences when drafting choices are deliberate)
- Bishop v. TES Realty Trust, 459 Mass. 9 (Mass. 2011) (interpreting statutory silence regarding distinctions)
