LIMOLINER, INC., Plaintiff, Appellant, v. DATTCO, INC., Defendant, Appellee.
No. 14-2188
United States Court of Appeals, First Circuit.
Dec. 23, 2015.
To put all this in perspective, it is helpful to observe that only 52 metropolitan areas in the entire United States received such funding in the last fiscal year. See U.S. Dep‘t Health Human Servs., Ryan White HIV/AIDS Program FY 2014 Part A Awards, http://www.hrsa.gov/about/news/2014tables/ryanwhite/parta.html (last viewed Dec. 17, 2015) (demonstrating that no metropolitan area in Maine, New Hampshire, Rhode Island, or Vermont received funding). And San Juan received one of the larger outlays. See id. While we acknowledge that Puerto Rico suffers the disadvantage of lacking formal representation in Congress, there is simply nothing whatsoever in this case to suggest that HHS treats the Ponce metropolitan area under the Act in any way differently than it does hundreds of similarly-situated areas across the United States.
In sum, we reject the district court‘s assumption that this litigation somehow provides an opportunity for the court to question HHS for doing what Congress told it to do. See Ponce, 40 F.Supp.3d at 231-32. Congress told HHS, first, to use in 1994 whatever areas CDC was using at the time in its surveillance reports. And it then told HHS to use whatever area it used in 1994. HHS plainly did both of these things.
III. CONCLUSION
We reverse the district court‘s entry of judgment for plaintiffs and remand for entry of judgment in favor of defendants dismissing the complaint with prejudice.
Christopher S. Williams, with whom Williams & Associates was on brief, for appellee.
Before KAYATTA, STAHL, and BARRON, Circuit Judges.
BARRON, Circuit Judge.
This appeal arises out of a suit over repair work on a luxury motor coach. The company that owns the vehicle, LimoLiner, Inc., contracted with an automotive repair company, Dattco, Inc., to do the work. The parties do not contest the finding below that Dattco breached the repair contract by failing to do all of the work that LimoLiner had requested. But LimoLiner does appeal the rulings below that Dattco may not be held liable under a Massachusetts regulation for certain actions and omissions that occurred on the job; that Dattco did not breach the parties’ oral contract to make the repairs in a timely manner; and that Dattco owes damages only for the loss of use of the vehicle for one limited period of time.
We certify a question concerning the Massachusetts regulation‘s intended scope to the Supreme Judicial Court of Massachusetts, and we thus do not decide the merits of LimoLiner‘s regulatory claims. We otherwise affirm.
I.
LimoLiner is a Massachusetts corporation that owns and operates a fleet of luxury motor coaches that are known as “Liners.” Dattco is a Connecticut corporation that repairs and services motor ve
On May 30, 2011, two LimoLiner employees met with two Dattco representatives to discuss the possible need to repair one of the Liners, Liner 3001. That vehicle had been out of service for about a year and needed extensive repair work.
At the May 30th meeting, Dattco orally agreed to repair Liner 3001 by, among other things, replacing or repairing a part of the vehicle called the inverter. The parties agreed that Liner 3001 would be towed to Dattco‘s facility in Massachusetts for inspection and that Dattco would provide a list of repairs following inspection. During that meeting, LimoLiner‘s general manager told Dattco‘s sales manager that LimoLiner wanted Liner 3001 to be repaired “as soon as possible.”
Following that meeting, Dattco generated a list of repairs, though that list did not include the inverter work that the Magistrate Judge found that Dattco had actually agreed to perform. The two parties used this list to divide the responsibility for each repair between each party. Dattco was to undertake the bulk of the repair work with the rest left for LimoLiner‘s own mechanics.
After Dattco took hold of Liner 3001, LimoLiner became concerned about the time Dattco was taking to repair the vehicle. On August 4, 2011, at an in-person meeting, the representatives from LimoLiner demanded compensation from Dattco for the monetary losses LimoLiner claimed it had sustained up to that point as a result of its inability to use Liner 3001. On August 8, 2011, LimoLiner followed up by letter and “complained about the level of attention, time and resources assigned to the job” by Dattco and specifically demanded $42,000 in compensation. LimoLiner, Inc. v. Dattco, Inc., No. 11-11877-JCB, 2014 WL 4823877, at *4 (D.Mass. Sept. 24, 2014). That letter also contained an offer to pay Dattco a certain amount for its services if Dattco delivered Liner 3001 by 5:00 p.m. on Friday, August 12, 2011.
Dattco responded to that letter by email on August 25, 2011. In doing so, Dattco informed LimoLiner that Liner 3001 was ready for pickup. Attached to the email was an invoice for $10,404.
LimoLiner refused to pay, but offered to put the money in escrow in exchange for the return of Liner 3001. Dattco did not accept that offer.
On October 5, 2011, LimoLiner filed this action in Massachusetts Superior Court. The suit alleged breach of contract, misrepresentation, negligence, replevin, and violation of
The court issued the requested order after first requiring LimoLiner to submit a $10,404 deposit to the Clerk‘s Office. Dattco complied with the court‘s order and returned Liner 3001 to LimoLiner on October 12, 2011.
Dattco removed the case to federal district court on the basis of diversity jurisdiction, answered, and counterclaimed for breach of contract and quantum meruit. A Magistrate Judge, presiding by consent over a bench trial,1 found that Dattco had expressly agreed to repair Liner 3001‘s inverter and breached the agreement by failing to make that repair.
LimoLiner appeals on three grounds. First, LimoLiner contends that the Magistrate Judge erred when she held, as a matter of law, that
II.
We start with LimoLiner‘s regulatory claims.
LimoLiner‘s regulatory claims rely on one of those regulations,
The Magistrate Judge found that Dattco failed to include the inverter in the written list of repairs it prepared prior to working on Liner 3001, even though LimoLiner had previously requested that specific repair. LimoLiner thus contends that Dattco plainly violated the regulation in this and other respects. But the Magistrate Judge ruled that
Neither the Massachusetts Supreme Judicial Court (“SJC“) nor this Circuit has construed this regulation before. But the SJC has held that a subsection of an arguably analogous
In Knapp, the SJC addressed
The SJC reached that conclusion by first noting that
Dattco contends—and the Magistrate Judge agreed—that
Nonetheless, unlike the regulation considered in Knapp,
Moreover, the timing of the promulgation of
The SJC has not had occasion to provide additional guidance since Knapp about whether regulations promulgated under
Does
940 C.M.R. § 5.05 apply to transactions in which the customer is a business entity?
The Clerk of this court is directed to forward to the Massachusetts Supreme Judicial Court, under the official seal of this court, a copy of the certified question and our opinion in this case, along with copies of the briefs and appendices filed by the parties. We retain jurisdiction over this appeal, and the question of whether Dattco violated
III.
With respect to LimoLiner‘s contract claims, the company contends that the Magistrate Judge clearly erred in finding that the parties did not agree to an expedited term of performance. LimoLiner also contends that, in any event, Dattco breached the agreement by failing to perform within a reasonable time. We consider each argument in turn.
A.
The contract between the parties was an oral one. The parties do not dispute that Massachusetts law governs this contract. The parties also do not dispute that a representative of LimoLiner told Dattco on May 30, 2011—prior to Liner 3001‘s transfer to Dattco‘s facilities—that LimoLiner wanted the vehicle to be repaired “as soon as possible.” The question, therefore, is whether that statement made expedited performance a term of the oral contract between the parties.
The parties agree that under Massachusetts law this question is one of fact, see Rizzo v. Cunningham, 303 Mass. 16, 20, 20 N.E.2d 471, 474 (1939); RCI Northeast Servs. Div. v. Boston Edison Co., 822 F.2d 199, 202 (1st Cir.1987) (“[W]here the plain meaning of a contract phrase does not spring unambiguously from the page or from the context, its proper direction becomes one for the factfinder, who must ferret out the intent of the parties.“) (applying Massachusetts law), and that we must review the Magistrate Judge‘s finding only for clear error. See
The Magistrate Judge did note that “[i]n other contexts, phrases such as ‘as soon as possible’ and ‘as soon as practicable’ have been construed to mean ‘as soon as reasonably possible under the circumstances of the case.‘” LimoLiner, 2014 WL 4823877, at *5. But the Magistrate Judge expressly found, in this instance, that “there was no agreement that the repairs would be performed on an expedited basis.” Id. The Magistrate Judge reasoned as follows.
As a result, the Magistrate Judge did not clearly err in treating LimoLiner‘s single oral request for performance “as soon as possible” to be a perfunctory suggestion rather than a manifestation of a mutually agreed upon term of expedited performance.2 See Murphy v. Nelson, 306 Mass. 49, 49, 27 N.E.2d 678, 679 (1940) (holding that an oral conversation regarding the terms of an agreement “could be found not to have been intended by the parties to be a part of their [ultimate] agreement,” as it “was no more than an expression of an opinion or suggestion concerning the transaction into which the parties contemplated entering“); cf. Rezendes v. Barrows, No. CIV. A. B96-01625, 1998 WL 470505, at *12 (Mass.Super. Aug. 11, 1998) (holding that a written brokerage agreement did not include an expedited term of performance because the agreement contemplated a definite result and lacked an explicit expiration date, even though the broker knew that the borrowers were “seeking funds as soon as possible“). We therefore reject LimoLiner‘s first challenge.
B.
LimoLiner next argues that even if there was no agreement to expedite the repair work, Dattco still failed to perform the repairs within a reasonable period of time. LimoLiner first contends that the Magistrate Judge erred by failing to make a finding on this score at all. LimoLiner then contends that, to the extent the Magistrate Judge did find that Dattco‘s performance was timely, the Magistrate Judge committed clear error in so finding.
Under Massachusetts law, if a contract is silent as to the term for performance, then “the term shall be a reasonable time based on all the relevant evidence.” See Bushkin Assocs. v. Raytheon Co., 815 F.2d 142, 146 (1st Cir.1987); Thermo Electron Corp. v. Schiavone Const. Co., 958 F.2d 1158, 1164 (1st Cir.1992) (in the absence of any specified time limit or provision stating that time was “of the essence,” the term was “a reasonable time“). Contrary to LimoLiner‘s contention, the Magistrate Judge, applying that default term for performance, did find that Dattco performed within a reasonable time. See LimoLiner, 2014 WL 4823877, at *5 (finding that Dattco “did not breach the contract with regard to the timing of the repairs,” as Dattco performed as soon as reasonably possible under the circumstances).
That being the case, LimoLiner agrees that a finding about “reasonable” timely performance is one of fact and is thus “subject to the clearly erroneous standard
The reasonableness of Dattco‘s twelve-week period of performance—extending from May 31, 2011 to August 25, 2011—“depends on the nature of the contract, the probable intention of the parties as indicated by it, and the attendant circumstances.” Charles River Park, Inc. v. Bos. Redevelopment Auth., 28 Mass.App.Ct. 795, 557 N.E.2d 20, 32 (1990). The Magistrate Judge supportably found that those considerations weighed in favor of finding that Dattco had performed within a reasonable time.
In addition to finding that Liner 3001 had been out of service for some time, the Magistrate Judge found that Liner 3001 was missing a number of critical parts and thus needed significant repair work, the extent of which was originally unforeseen by the parties.3 The Magistrate Judge also found that LimoLiner did not express an urgent need to have Liner 3001 repaired until after another Liner—Liner 3000—had been badly damaged in late June 2011. The record provides sufficient support for each of these findings.
LimoLiner does contend that the Magistrate Judge failed to take into consideration certain of Dattco‘s actions (or non-actions) when determining whether Dattco acted within a reasonable time. For ex
But the Magistrate Judge referenced the fact that Dattco did not begin work on Liner 3001 until June 9, 2011 and that Dattco spent only 62.2 hours working on Liner 3001 as of July 28, 2011.4 The Magistrate Judge just gave that evidence little weight in view of “the nature of the contract, the probable intention of the parties as indicated by it, and the attendant circumstances.” Charles River Park, Inc., 557 N.E.2d at 32. For example, in considering the circumstances bearing on the timeliness of the repairs, the Magistrate Judge reasonably gave weight to the “evidence that once some repairs were performed, new problems were found that had to be addressed.” LimoLiner, 2014 WL 4823877, at *5.
Perhaps this record could be read to permit a different finding. But that possibility does not suffice to show that the Magistrate Judge clearly erred in finding as she did. “Where there are two permissible views of the evidence, the factfinder‘s choice between them cannot be clearly erroneous.” Anderson v. City of Bessemer City, N.C., 470 U.S. 564, 574, 105 S.Ct. 1504, 84 L.Ed.2d 518 (1985); cf. Thermo Electron Corp., 958 F.2d at 1165-66 (where there was strong evidentiary support in the record to support the conflicting notions that a party had and had not repudiated contract, the appellate court deferred to the district court‘s finding that there was no repudiation). We thus affirm the Magistrate Judge‘s finding that Dattco did not breach its oral contract with LimoLiner with respect to the timeliness of repair.
IV.
LimoLiner‘s final contention is that we must reverse the Magistrate Judge‘s award of damages because it accounted for only a portion of the time in which LimoLiner was without the use of Liner 3001 and thus was too limited. Here, too, the issue is one of fact, and our review is for clear error. See
There were three periods of time during which LimoLiner was without the use of Liner 3001. The first period ran from May 31, 2011 to August 25, 2011, when Dattco was performing repairs on the vehicle. The second period ran from August 25, 2011 to October 12, 2011, when Dattco was holding Liner 3001 pending payment for the services performed. The third period ran from October 12, 2011 to November 11, 2011, when LimoLiner had possession of Liner 3001 and during which period LimoLiner made arrangements to obtain and replace the inverter.
LimoLiner argued below that it was entitled to damages for a four-month loss of use of Liner 3001—spanning from July 2011 (middle of the first period) to October 2011 (middle of the third period)—due to Dattco‘s alleged delay in performance and Dattco‘s failure to perform all the requested repairs. The Magistrate Judge disagreed. The Magistrate Judge declined to award damages to LimoLiner for any portion of the first and second periods of time. Indeed, the Magistrate Judge awarded damages to LimoLiner for only a portion of the third period of time. See LimoLiner, 2014 WL 4823877, at *10 n. 10 (noting that LimoLiner bore responsibility for a one-week delay during the third period of time and thus “attribut[ing] a three-week delay and corresponding damages to Dattco‘s conduct” during that four-week period (emphasis added)).
On appeal, LimoLiner accepts the Magistrate Judge‘s award of damages to LimoLiner for only a portion of the third period of time. But LimoLiner challenges the Magistrate Judge‘s refusal to award damages for the first and second periods of time. Specifically, LimoLiner contends that it was entitled to damages for the loss of use of Liner 3001 during a portion of the first period and all of the second period.
The Magistrate Judge declined to award damages to LimoLiner for the first period in light of her finding that Dattco performed within a reasonable time. Because we affirm the Magistrate Judge‘s finding of timeliness and because, as LimoLiner implicitly concedes, only a contrary finding would have supported an award of damages to LimoLiner during the first period, the Magistrate Judge did not clearly err in withholding damages for the entire first period of time.
In other words, LimoLiner must show that the damages it sustained during the second period were proximately caused by the misconduct that the Magistrate Judge did attribute to Dattco—that is, Dattco‘s failure to repair the inverter. But this LimoLiner has not done. For while LimoLiner makes two arguments on appeal as to why it ought to have been awarded damages for the second period, both arguments amount to nonsequiturs.
LimoLiner first contends the Magistrate Judge‘s finding that LimoLiner did not fail to mitigate damages during the second period indicates that LimoLiner should in fact have been awarded damages for that period. But LimoLiner‘s conduct is immaterial to the inquiry, as the relevant question is whether Dattco‘s misconduct proximately caused the damages sustained during the second period. LimoLiner next contends that the Magistrate Judge erroneously based her decision to withhold damages for the second period on her finding that Dattco did not breach the parties’ contract in regard to timeliness. But the Magistrate Judge gave no indication that she considered Dattco‘s timeliness in declining to award damages to LimoLiner for the second period.
In consequence, LimoLiner has not demonstrated that the Magistrate Judge clearly erred in awarding damages in the limited manner that she did for the breach that she found. And, we note, the record provides support for finding that Dattco had a basis for holding onto Liner 3001 during the second period that was unrelated to the breach that had been found. In concluding that LimoLiner was not entitled to damages for replevin, the Magistrate Judge found that Dattco lawfully retained possession of Liner 3001 during the second period pursuant to the Massachusetts Garage Keepers statute. See
V.
For the reasons above, we affirm the Magistrate Judge‘s disposition of the parties’ state law contract claims. But we certify the question regarding
