Legal Question in Business Law in Massachusetts
Small Claims Suit + Counterclaim re: Breach of Contract
I'm disabled & was the Plaintiff in a Bench Trial Dec. 2. I was seeking damages against a Defendant for Breach of Contract re: Sale of my business to him for $12K. He signed a Promissory Note stating he was responsible for all payments on a 2004 Explorer as compensation for sale of biz. He defaulted a # of times and destroyed my credit since I had to co-sign the note. The Judge ruled ''that since the action was brought the Defendant has omitted payments altogether and is certainly in breach of contract. Under the contract the P. is entitled to be paid the balance needed to pay off the vehicle. Based upon the evidence before me I am not persuaded as to the balance due(1)''. My Law. failed to prove amount due(Malpractice?)but the (1)
notation after the Judge's ruling states: ''Neither is this decision decisive of the future right
of any party for contributions or indemnity for payments made''. The
D. stopped making payments in Aug
08 & I've been making them since
so I'm suing for all payments I've made. In the Bench Trial the Judgement was for me, the P., but I only received nominal damages of $1.00 thanks to my Attorney. The Answer & Countercl. reflect what was already adjudicated. I'm being c-sued for $2K + face repo! PLEASEHELP
2 Answers from Attorneys
Re: Small Claims Suit + Counterclaim re: Breach of Contract
It appears the issue is the amount due and owing the loan company on the balance of the loan and the amounts you have paid towards that end, for which you are entitled to reimbursement (indemnification). Please feel free to contact my office for a free initial consult based upon the facts of your specific situation.;))
Re: Small Claims Suit + Counterclaim re: Breach of Contract
Based on your limited description, it appears the judge tried to carve out for you your future right to bring claims against the defendant (the one who defaulted on agreement to pay monthly costs for the vehicle in exchange for the business) to recover the amounts you have since been forced to pay the lender on the vehicle because of his default. These would be claims for indemnification and contribution to collect all amounts rightfully due you, caused by defendant's breach. While I have some concerns about those claims being barred by res judicata (previously litigated by you and not proven), the judge's intention to permit you such future claims would certainly have some force in opposing a res judicata argument to dismiss indemnity/contribution claims.
You can bring the defendant into the present counterclaim (if I understand correctly, by the lender) through an action in impleader. Or you can bring a separate case with those claims, but I would expect a troublesome res judicata defense in either event. Good luck.
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