260 Mass. 599 | Mass. | 1927
The declaration in each of these two actions of tort, which were tried together, contained two counts, the first of which was waived. Thé answer in each case was a general denial. They are before us on exceptions saved by the plaintiff to the admission and exclusion of evidence, at the close of which and subject to the plaintiff’s exception, the trial judge ordered a verdict for the defendants. The jury would have been warranted in finding the following facts:
The plaintiff, a corporation organized under the laws of Maryland, was engaged in the construction of buildings. On July 25, 1922, it entered into an agreement with The Chatham, Inc., a corporation organized under the laws of this Commonwealth, to build for it "The Chatham Apartment Hotel, Brookline, Massachusetts,” according to plans and specifications furnished by its architect, a copy of which "as finally revised, modified and determined upon,” was furnished to the plaintiff, who shortly thereafter visited the proposed building site, "located the building lines, staked out the property, made a survey to find the grades and the amount of excavation to be done, erected a workmen’s shack, put up batter boards and cut away the shrubbery to get the lines through and placed the plaintiff’s general superintendent on the job.” On August 18 and 19, 1922, Harry D. Watts, president of the H. D. Watts Company, together with E. R. Grabow, then president of The Chatham, Inc., and one Ivor B. Clark, a broker, was in Chicago, Illinois, where he was introduced to William J. Moore, president of the American Bond and Mortgage Company, as "the builder of the Chatham.” In the presence of Watts,
On August 30,1922, another meeting took place in Boston between the defendant Moore and Watts, there being present a brother and two sons of Moore, all officials of the American Bond and Mortgage Company, Ivor B. Clark, and the president, clerk, treasurer and a director of The Chatham, Inc., all of whom, after visiting the site of the proposed building, went to a hotel in Swampscott and, with the exception of Watts and Clark, went into conference. Later Watts was called in, and Moore pointed out some apparently conflicting statements in the contract signed by Watts with the "papers that were signed,” in Swampscott, and also alluded to the subject of waiver of liens by the Watts Company and its subcontractors, the Watts Company’s fee, and the making of an appraisal of the building by Watts. One of Moore’s sons suggested that he would send to Watts a form of contract containing a provision for the waiving of liens by sub-contractors and also a copy of the “underwriting agreement that was executed that night between the American Bond and Mortgage Company and The Chatham, Inc.,” for his use in the procurement of a bond from the surety company. This underwriting agreement designated The Chatham, Inc., as "the Owner,” and the American Bond and
Shortly after the middle of September, Watts, accompanied by Clark, saw Moore at his New York office, and was told by Moore that his contract seemed higher than it should be and asked him to talk the matter over with one Thomas, an officer of the Longacre Company, to see if he couldn’t “reduce . . . [his] cost.” This was done and Watts reported the result, to the effect that they “were not very far apart on the cost,” and offered to show Moore how they had ‘‘gotten together.” Moore refused to listen to these details and said “Mr. Tobey and Mr. Clark know my wishes in this matter, and what has got to be done, if I am going any further with this deal. If you have got anything more to say, you had better say it to them”; that “Clark and Tobey were handling this matter for him, and I must take it up with them.” About the last of September Watts again went to New York and had a talk with Clark. Subject to the exception of the defendants, Watts was permitted to testify that “Mr. Clark told me, . . . that I must work out some sort of a contract that would limit that cost, in order to satisfy Mr. Moore.” During this interview Watts produced two forms of contractor’s bonds and a draft copy of a proposed new contract which he gave to Clark, after which they went to see Moore and had a talk with him; Moore took the papers and said “I will look them over.” In reply to Watts’s question — whether or not it was “feasible to open his first mortgage and come along pro rata in his payments” because the secondary financing was not in such shape that it could all be paid in, Moore said that he would think it over
Watts valued his contract of July 25$ 1922, as $350,000, which included a fee of $260,000 and loss of advertisement and prestige.
On December 9, 1922, Byrnes was succeeded as clerk of The Chatham, Inc., by one Davison, a practising attorney in Boston, who also became local counsel for the American Bond and Mortgage Company in September of 1924. Davison produced at the trial the books and papers of The
Clark, called by the plaintiff, testified that his firm was employed as brokers to procure a loan and that “he negotiated the underwriting of the sale of bonds in connection with The Chatham, Inc., with the American Bond and
The deposition of William C. Tobey stated that he first met Moore in the fall of 1922; that he always saw him with Clark, and at times Beck and Thomas were present. The subject matter of his interviews related to the junior financing and in .connection therewith he showed Moore letters signed by Charles.M. Schwab addressed to Mrs. M. B. Hayes, in which Schwab agreed to do certain financing. The plaintiff objected and saved its exception to the admission of evidence by Tobey as to what became of thq
William J. Moore testified that he was president of the American Bond and Mortgage Company, and vice-president and director of the Longacre Engineering and Construction Company in which he owned one half of the capital stock; that his two sons and his brother were officers and directors of the Longacre Company and also of the American Bond and Mortgage Company at that time; that although he was consulted at times concerning its business, he did not dominate the Longacre Company in any way; that Beck and Thomas owned seven out of a total of fifty shares of the Longacre Company, and the balance “is held by the members of my family.” The Chatham project was first presented to him by Clark, who showed him written authority contained in a letter dated July 24, 1922, addressed to Clark’s firm and signed by the president of The Chatham, Inc., which set out in detail their arrangement for the sale of the first mortgage bond issue for the Chatham. There is no conflict in the testimony of Moore and Watts as to the negotiations between them prior to November 1, 1922, except Moore denied having seen a signed contract between The Chatham, Inc., and Watts, he maintaining that his attention was called “to a draft of a contract submitted by Clark, as being a copy of contract Grabow and Watts were proposing to enter into.” This draft, dated October, 1922, was intro-, duced in evidence and contains the following clause: “Article 8. It is further agreed that this contract takes the place of
Robert Beck, president of the Longacre Company, testified that he “first heard of the Chatham deal during the first week of October, 1922, when Mr. William J. Moore handed to him and Thomas a copy of a contract bearing the date — October, 1922 . . . between the H. D. Watts Company and The Chatham, Inc.”; that he never saw Watts; that about the middle of October Clark came to see him and said “if I would assist him in getting the American Bond and Mortgage Company to agree to sell a first mortgage bond issue on the Chatham ... in the amount of $3,200,000 . . . then he would award the contract for the erection of the building to the Longacre Engineering and Construction Company”; that Tobey was now in position to supply the junior financing; that Charles M. Schwab was back of the deal; that
It is not contended that Moore, while acting for himself, did not act also for the bonding company, see Commissioner of Banks v. Tremont Trust Co. 259 Mass. 162, 179; Dempsey v. Chambers, 154 Mass. 330, and it is obvious, upon the foregoing review, that the jury could find that the defendants wrongfully induced The Chatham, Inc., to break its contract with the plaintiff. There was evidence that Moore had informed Clark and Tobey of what he proposed to do and had given them authority to act for him with a view to the accomplishment of that end. Anthony & Cowell Co. v. Brown, 214 Mass. 439, 441. The question, therefore, arises, whether Moore could be held liable for inducing The Chat-ham, Inc., to break its contract with the Watts Company.
The defendants contend that, even if Moore knew of the Watts contract, and his object in insisting upon awarding the construction contract to the Longacre Company was to facilitate the selling of bonds by making them a better risk, yet he would not be liable for inducing it. But the jury could find, however, that Moore’s object was to obtain the benefit of the Watts contract for the Longacre Company in which he was financially interested, and, if so found, Moore would be liable. Beekman v. Masters, 195 Mass. 205. Walker v. Cronin, 107 Mass. 555.
It is further contended that the “document” dated October 13, 1922, constituted a release by the plaintiff of all its rights under the construction contract. We are of opinion that the-wording of the “document” discloses the intention on the part of the Watts Company to stand on its rights under the contract until the payment of a considerar tian for the release was secured by an instrument to which the American Bond and Mortgage Company was a party. The “document,” therefore, in and of itself, does not con-.
It appeared in the testimony of Watts that he talked about the “document” with Riddle, vice-president, and Byrnes, clerk, of The Chatham, Inc. But the plaintiff’s offer of proof that Byrnes “said that he had several talks with Tobey and Clark, and if I didn’t take this settlement it meant that they would lose all that they had put in, and everybody else would, that the deal would fall through. They also said they would get me $20,000 worth of preferred stock from Parker, Thomas and Rice. They said they would attempt to get a ratification of this settlement so that the agreement could be drawn cancelling the contract, and to try and put these terms through and let me hear from them. What was said about the American Bond and Mortgage Company was that they were going to get a guaranty from the American Bond and Mortgage Company for $25,000 and from William A. White and Sons a guaranty of $5,000,” was rightly excluded. It does not appear that either Riddle or Byrnes had any authority to represent the corporation. Morrison v. Tremont Trust Co. 252 Mass. 383, 387, 388.
The witness Moore testified as to what happened in connection with the Chatham project after November 10, 1922, to which the plaintiff duly excepted. Although the purpose for which such testimony was offered does not appear, counsel for the parties in their briefs relating to this evidence treat it as referring to damages solely. It is settled, however, that in an action of tort for inducing a breach of contract, the damage for which recovery is had is “the loss of advantages, either of property or of personal benefit, which, but for such interference, the plaintiff would have been able to attain or enjoy.” Walker v. Cronin, 107 Mass. 555, 565. Lopes v. Connolly, 210 Mass. 487, 494, 495. The plaintiff’s damages accrued as of the date when the Longacre Company contract was awarded. If the plaintiff prevails, he is entitled at least to nominal damages. But he cannot recover speculative or conjectural profits or losses of any description. The measure of recovery is limited to the actual
The result is, that in each case the entry must be