Kabatchnick v. Hanover-Elm Building Corp.
Massachusetts Supreme Judicial Court
328 Mass. 341, 103 N.E.2d 692 (1952)
- Written by Angela Patrick, JD
Facts
Louis Kabatchnick (plaintiff) owned a retail store that leased space in a building for $4,500 per year. Hanover-Elm Building Corporation (Hanover-Elm) (defendant) bought the building that housed Kabatchnick’s store. Hanover-Elm told Kabatchnick that an individual named Melvin Levine had offered to lease the store space for $10,000 per year for 12 years. Hanover-Elm then told Kabatchnick that he needed to match this offer or he would be evicted when his lease expired in a few months. Kabatchnick believed Hanover-Elm and signed an agreement to lease the space for $10,000 per year for 12 years. Later, Kabatchnick learned that there never was a lease offer by Levine and that Hanover-Elm had deliberately misrepresented the information to induce Kabatchnick to enter the longer and more expensive lease. Kabatchnick also learned that the lease value of the building space was around only the $4,500 per year that he had been paying. Kabatchnick sued Hanover-Elm for the tort of deceit for fraudulently inducing him to sign the inflated lease agreement. The trial court dismissed Kabatchnick’s claim. Kabatchnick appealed.
Rule of Law
Issue
Holding and Reasoning (Spalding, J.)
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