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Pena Real Estate Investments, LLC v. One Hardt, LLC

2023 WL 3997038 (2023)

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Pena Real Estate Investments, LLC v. One Hardt, LLC

United States District Court for the District of Massachusetts
2023 WL 3997038 (2023)

MJ

Facts

Bernardo Pena was the manager of Pena Real Estate Investments, LLC (Pena Real Estate) (plaintiff). Maria Kunhardt was the manager of One Hardt, LLC (defendant). Kunhardt was listed in state corporate filings as the designated person for executing contracts related to real estate properties for One Hardt. Drimel Reyes, Kunhardt’s son, was also a member of One Hardt. Pena and Reyes entered negotiations for Pena Real Estate to purchase several properties from One Hardt. During these negotiations, Kunhardt allegedly waited outside in the car, aware of the negotiations. Pena and Reyes eventually executed an agreement for the properties. Reyes allegedly did so with Kunhardt’s knowledge and authority. As part of the agreement, Pena Real Estate deposited $5,000 of earnest money to One Hardt. Before the closing date, One Hardt sold the properties to another buyer. Pena Real Estate sued One Hardt for breach of contract, among other things. One Hardt moved to dismiss for failure to state a claim. One Hardt argued that Reyes lacked any authority to enter the agreement and bind One Hardt (i.e., that Reyes did not have authority from Kunhardt to enter the contract on behalf of One Hardt). According to One Hardt, the contract was therefore unenforceable.

Rule of Law

Issue

Holding and Reasoning (Talwani, J.)

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