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Louis V. Melotte & another vs. Domenic Tucci & others

Massachusetts Supreme Judicial Court1946-05-03
319 Mass. 490

Summary

Holding. The court reversed the appellate division's judgment and reinstated the trial court's finding for the plaintiffs. The court held that the plaintiffs provided valid consideration by abandoning their good-faith legal claim against the defendants regarding the meter issue, which was neither frivolous nor vexatious, and this surrender of a colorable right was sufficient to support the defendants' promise to indemnify them.

The plaintiffs purchased a two-family house from the defendants under a written agreement. Shortly before closing, the plaintiffs discovered that both apartments shared single gas and electric meters, contrary to what they expected. At the closing on September 29, 1944, the plaintiffs refused to proceed unless the defendants agreed to reimburse them for costs to install separate meters. Two of the defendants and one defendant orally signed an indemnity agreement to cover these expenses in exchange for the plaintiffs' agreement to complete the purchase.

The plaintiffs later sued for breach of the indemnity agreement. The defendants argued the agreement lacked valid consideration because the plaintiffs were already obligated to complete the original purchase. The trial court ruled for the plaintiffs, but an appellate court reversed, concluding there was insufficient consideration. The plaintiffs appealed, arguing that their surrender of a good-faith claim to recover meter installation costs themselves constituted valuable consideration separate from their obligation to complete the original purchase.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether performance of a pre-existing contractual duty constitutes valid consideration
  • Whether abandonment of a good-faith legal claim provides sufficient consideration for a new promise
  • Whether a claim must be ultimately meritorious to constitute consideration when abandoned

Procedural posture

The plaintiffs appealed from a judgment of the Appellate Division reversing the trial court's decision in favor of the plaintiffs in this breach of contract action.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Spalding, J.

In this action of contract there was evidence of these facts: At some time prior to September 29, 1944, the plaintiffs and the defendants entered into a written agreement by the terms of which the plaintiffs agreed to purchase and the defendants agreed to sell a two-family house. A few days before the date set for the passing of papers the plaintiffs moved into the house and “discovered that both apartments drew their electricity and gas from one meter.” On September 29, 1944, when the parties met for the passing of papers, the plaintiffs informed the defendants that they had agreed to purchase a two-family house and that they would not go through with the agreement unless the defendants agreed to pay them for the expenses that they might incur in installing gas and electric meters adequate for such a house. After some discussion between the parties two of the defendants, in order to induce the plaintiffs to pass papers, executed the following agreement: “September 29, 1944 It is hereby agreed that we, the undersigned, for consideration paid, will indemnify Louis V. Melotte and Ella Melotte from any expense incurred in installing gas and electric meters in premises #48 Gordon Ave. Hyde Park, Massachusetts. The undersigned have the option to engage contractors of their own choosing. Leonard Intonti Amalia I. Intonti.” The plaintiffs assented to this and papers were passed. The defendant Tucci orally agreed to the terms of the agreement.

In this action for breach of the indemnity agreement, the judge found for the plaintiffs. The question for decision arises out of the judge’s denial of the defendants’ second request which asked for a ruling that there “was no legal consideration sufficient to support the promise of the defendants to indemnify the plaintiffs.” From a decision of the Appellate Division holding that this request should have been granted and ordering judgment for the defendants the plaintiffs appealed.

It was said by Chief Justice Knowlton in Parrot v. Mexican Central Railway, 207 Mass. 184, 194, that, “As a general proposition, it is settled in this Commonwealth that a promise to pay one for doing that which he was under a prior legal duty to do is not binding for want of a valid consideration.” See Warren v. Hodge, 121 Mass. 106; Martiniello v. Bamel, 255 Mass. 25, 28; Williston, Contracts (Rev. ed.) §§ 130, 130A. We assume, therefore, that if the only consideration for the indemnity agreement was the plaintiffs’ performance of the original agreement, the plain tiffs could not recover. But it could have been found that the plaintiffs did more than this. There was evidence that a dispute arose between the parties concerning the meters and that the plaintiffs surrendered the right to litigate their contentions in exchange for the execution of the indemnity agreement by the defendants. “It is well settled that the abandonment of a claim believed to be well founded and made in good faith and ‘not frivolous, vexatious or unlawful, although not of such character in law or fact or both as finally to commend itself to the judgment of the tribunal of last resort, is the surrender of a thing of value and is a sufficient consideration for a contract.’ Codman v. Dumaine, 249 Mass. 451, 457-458.” Higgins v. Gilchrist Co. 301 Mass. 386, 390. Blount v. Wheeler, 199 Mass. 330, 336. Silver v. Graves, 210 Mass. 26, 30. Sherman v. Werby, 280 Mass. 157, 160. See Williston, Contracts (Rev. ed.) § 135; Am. Law Inst. Restatement: Contracts, § 76 (b).

In the case at bar the judge could have found that the claim abandoned by the plaintiffs was not vexatious or frivolous and was asserted in good faith. Silver v. Graves, 210 Mass. 26, 31. Higgins v. Gilchrist Co. 301 Mass. 386, 390-391. It follows that the trial judge rightly refused to grant the defendants second request. The order of the Appellate Division must be reversed and the finding for the plaintiffs is to stand.

So ordered.