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Lipson v. Southgate Park Corp.

189 N.E.2d 191 (1963)

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Lipson v. Southgate Park Corp.

Massachusetts Supreme Judicial Court
189 N.E.2d 191 (1963)

RW

Facts

William Lipson (plaintiff) contracted with Southgate Park Corporation (defendant) for the purchase and sale of land on which Southgate Park was to build a house in accordance with contract-stipulated specifications. The contract boilerplate contained two provisos: (1) Lipson’s acceptance of the property’s deed and possession was not to be construed as proof that Southgate Park had performed its contractual obligations, and (2) Lipson’s payment of the purchase price was not to be construed as acceptance of faulty workmanship. Lipson and Southgate Park deleted the first boilerplate proviso before signing the contract. Southgate Park finished construction and turned over the property’s deed and possession to Lipson, who after moving into the new house found that the house did not meet contract specifications. Lipson successfully sued for jury-awarded damages. Southgate Park moved for a directed verdict. Citing the parties’ agreement to remove the first boilerplate proviso, Southgate Park argued that Lipson’s acceptance of the property’s deed and possession discharged Southgate Park of any further obligations under the contract. The trial court denied Southgate Park’s motion and entered judgment for Lipson. Southgate Park appealed to the Massachusetts Supreme Judicial Court.

Rule of Law

Issue

Holding and Reasoning (Spiegel, J.)

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