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Cantell v. Hill Holliday Connors Cosmopulos, Inc.

Citations: 55 Mass. App. Ct. 550; 772 N.E.2d 1078Docket: No. 00-P-57

Court: Massachusetts Appeals Court; August 2, 2002; Massachusetts; State Appellate Court

Narrative Opinion Summary

In this case, an employment agency, referred to as CCI, brought claims against a company, HHCC, for breach of contract and quantum meruit, asserting that it was entitled to compensation for facilitating an employment relationship. The primary legal issue was the applicability of the Statute of Frauds under G. L. c. 259, § 7, which requires agreements to compensate brokers or finders to be in writing and signed by the party to be charged. The Superior Court held that CCI's claims were barred by the Statute of Frauds as there was no signed agreement by HHCC. Additionally, CCI could not establish that it was the efficient and predominating cause of the employment decision, a required element of its claim. CCI's claim under G. L. c. 93A for unfair business practices was also dismissed because it relied on the barred claims. Procedurally, CCI failed to properly raise the G. L. c. 93A argument on appeal, rendering it invalid. The court's decision thus favored HHCC, affirming the importance of having formal written agreements in broker and finder transactions to avoid disputes.

Legal Issues Addressed

Appellate Procedure for Raising Issues

Application: CCI's failure to properly address the dismissal of its G. L. c. 93A claim in its main brief led to the issue not being considered on appeal.

Reasoning: CCI's failure to adequately address the dismissal of its G. L. c. 93A claim in its brief, only raising it in a reply brief, does not constitute sufficient appellate argument and is therefore not considered.

Application of G. L. c. 93A for Unfair Business Practices

Application: CCI's claim under G. L. c. 93A was dismissed as it was contingent on breach of contract and quantum meruit claims, which were barred by the Statute of Frauds.

Reasoning: CCI's claim under Chapter 93A for unfair business practices was dismissed as it was dependent on its breach of contract and quantum meruit claims, which were also found to lack merit.

Definition of Broker and Finder

Application: CCI was considered both a broker and a finder as it acted as an intermediary in negotiating employment and identifying opportunities for HHCC.

Reasoning: The terms 'broker' and 'finder' are used in their ordinary meanings; a broker negotiates agreements while a finder merely introduces parties for potential business. CCI’s services qualify as both a broker and a finder.

Efficient and Predominating Cause

Application: CCI failed to prove it was the efficient and predominating cause of Lehrer's employment at HHCC, a necessary element for its claim.

Reasoning: CCI failed to demonstrate that it was the efficient and predominating cause of Lehrer’s employment at HHCC, which is a necessary element of its claim.

Quantum Meruit Claims

Application: Quantum meruit claims were barred by the Statute of Frauds as they were based on implied contracts, requiring a written agreement.

Reasoning: G. L. c. 259, § 7 prohibits recovery on claims based on implied contracts, including quantum meruit claims.

Statute of Frauds under G. L. c. 259, § 7

Application: The court applied the Statute of Frauds to bar CCI's claims for compensation as a broker or finder because there was no written and signed agreement by HHCC.

Reasoning: The Statute of Frauds stipulates that agreements to pay brokers or finders must be in writing and signed by the party to be charged for such agreements to be enforceable.

Written Agreement Requirement under Statute of Frauds

Application: The service charge schedule sent by CCI did not constitute a written agreement under the Statute of Frauds as it was unsigned by HHCC.

Reasoning: Neither Woodard, Haag, nor any authorized individual from HHCC signed the service charge schedule or agreed to pay CCI a commission.