Professional Documents
Culture Documents
No. 95-2095
Plaintiffs, Appellees,
v.
Defendants, Appellants.
____________________
____________________
Before
____________________
____________________
STAHL,
STAHL,
Circuit
Circuit
Judge.
Judge.
Merrill J.
Shepard
and
______________
Thomas
M. Parks
appeal from
that
Shepard
and
the
judgment against
Parks:
(1)
improperly
them in
jury found
and
unfairly
unfair
trade
practice
Consumer Protection
Act.
in
violation
second,
duplicative.
that
of
the
New
an
Hampshire's
and,
(5) engaged in
an
damages
Disagreeing
of evidence of
with
awarded
the
were
improperly
appellants'
first
reverse in
part, and
remand for
correction of the
damages
award.
I.
I.
__
Background
Background
__________
erected house
The purchase
price
____________________
1.
This is a
anomalies in
foreclosure
federal trial
unusual case.
the
underlying real
process, and
courts.
is material to the
the
estate
transaction,
litigation in
Because none
a number of
the state
the
and
of these irregularities
merely point
-22
was $229,000; the LaBarres paid $11,450 cash and gave Shepard
and
Parks
a promissory
note
in
the
amount of
the premises.
$217,550,
No payments of
either the
In
Parks
in
construction,
October 1990,
New
the
Hampshire
LaBarres
state
court
sued Shepard
for
and
defective
money damages.
Shepard
due on
denied recision,
cost
After
a bench trial,
the court
$38,000 to repair.
Accordingly, on June
7, 1993, the
____________________
the odd
2.
The promissory
payments
for
up
note, while
to two
installment payments
The
years,
providing for a
did
thereafter nor
not
for a
deferral of
provide for
any
balloon payment.
-33
court entered
of repairs from
In the summer of
foreclosure
then
due
on the
mortgage note.5
A foreclosure
sale was
____________________
3.
judge
$38,000.
The
judge then
stated
that
"[d]efendants'
counterclaim
for the mortgage balance due, the judge did not make an award
of
money damages,
but
rather deducted
"the correct
methodology
the $38,000
for recalculation
note" of $239,729.
damage
of the
terms of
"Judgment
this to
be a
judgment for
$239,729, when
counterclaim.
We ignore
Shepard and
magistrate judge
to
proper
measure
the
counterclaim brought
no
award on
Parks for
the
court "judgment"
mortgage
because the
deficiency
Given
best
to be a finding of fact.
4.
$217,500
38,000
______
$179,500
$239,109
$34.32
5.
The
record does
59,609
______
not
reveal whether
$239,729
Shepard and
Parks
initiated
the foreclosure
proceedings
before or
after the
-44
foreclosure sale,
Shepard
and Parks
obtained a
"drive-by"
According
to
the
LaBarres,
their
lawyer orally
agreed
LaBarres
return,
with
the
lawyer
for
Shepard
and
Parks that
the
Shepard and
Parks
would credit
the full
$150,000
the agreement,
the LaBarres
Parks access
Shepard
to their
and Parks
allegedly
home for
assert that no
a more
In consideration
for
offered Shepard
and
thorough appraisal.
such agreement
was made.
The
to
LaBarres claim to
but say
day
before
the
LaBarres received
indicating
that
scheduled foreclosure
a faxed
that the
they would
however,
property was
give the
sale,
worth only
LaBarres credit
One
the
and Parks
$125,000, and
for 70%
of that
____________________
balance.
-55
due.6
The LaBarres
ahead as scheduled.
who,
upon
the
advice
of counsel,
jointly
purchased
the
$17,500
Labarres'
to
obtain the
property
payment made
in
release
of
an
Massachusetts;
by the LaBarres
attachment
this
payment.
II.
II.
___
was
on
the
the
only
initial down
Proceedings Below
Proceedings Below
_________________
The
LaBarres
brought
the
foreclosure.
framed in
diversity
action
in
of
this
Parks to honor
their promise to
in lieu
as amended, was
(IV) fraud, and (V) unfair and deceptive trade practice under
____________________
6.
It is
explained,
unclear from
whether
the
the
record, and
credit was
to
neither party
be
applied
has
to the
outstanding
balance on
court judgment.
Given
the mortgage
note or
to the
state
that judgment,
not surprising.
toward the
-66
ch.
358-A
("RSA
358-A").
counterclaims
for
mortgage
(II) the
and
(I)
the
Shepard
and
deficiency
on
judgment
debt
Parks
the
on the
brought
foreclosed
earlier
New
The
parties consented
trial, Shepard
evidence of
to
Parks moved
the alleged
Hampshire law.
in
__
limine to
______
was barred by
Stat.
506:1
enforce
Ann.
("RSA
oral contracts
magistrate
judge
LaBarres' breach
trial with
506:1")
for the
ruled that
of contract
the
governed by New
and
a jury
the
Prior
exclude
(precluding actions
statute did
claim.
After the
all
they claimed
of Frauds, N.H.
conveyance of
to
land).
not
Rev.
to
The
bar the
trial, the
After a
interrogatories, the
jury specifically
Through special
found that
the fair
foreclosure was
accept a deed
LaBarre's
Shepard
in return
for credit of
mortgage obligation.
and
Parks committed
$150,000 toward
The jury
an
-77
unfair
also found
trade practice
the
that
in
the
Although the jury was not asked how it arrived at that actual
damages
figure,
$82,500
is
the
difference
between
the
answered that
damages should be
trebled.7
that the
mortgage balance
court judgment,
was the
due, as calculated
proper measure
in the
for a
state
single, non-
____________________
7.
trial, and they now concede that the error has not been
preserved for appeal.
8.
Parks
judgment
was
difference between
for the period from
$239,729.
the two
See
___
supra
_____
figures is the
note
4.
The
interest applied
stipulated
interest calculation)
through June 7,
court judgment).
from mid-1993
through the
1993 (the
Neither figure
March 1995
includes
judgment in
this case.
The parties,
the calculation
however, do
error in
by Shepard and
Parks.
-88
misrepresentation,
and fraud
were, in
essence, alternative
theories
of
treated
improper
foreclosure count.
outright
on Count
jury's
improper
findings
LaBarres
I, the
on Counts
$170,000, in
foreclosure,
the
magistrate
Rather
than
awarding damages
magistrate judge
judge
through IV
fair market
implemented the
by
crediting the
value of
the property,
on their counterclaims.
Act
count,
in
accordance
interrogatory answers.
with
the
jury's
special
each of
the other
four counts
of the LaBarres'
Complaint,
they
for
are entitled to
violation
statute."
of
The
reasonable
an independent recovery
the
New
magistrate
under Count V
Hampshire
Consumer
judge also
awarded
Protection
costs
and
Shepard
Federal
Rule
appeal, Shepard
asserted
and
Parks moved
of Civil
and
for
Procedure 59(a),
Parks
raise
two of
-99
new trial
to
the
no avail.
issues
under
On
they
evidence
of
the alleged
oral
excluded from
trial under
they maintain
Protection
the award
owed on
agreement
should have
the Statute of
Frauds.
of damages under
of full
market value
Second,
the Consumer
credit against
in addition to
been
the balance
trebled Consumer
recovery
because
all
factual allegations.
the
counts were
based
on
the same
damages
under the
largest single
count, i.e.,
the trebled
III.
III.
____
Discussion
Discussion
__________
The
same factual
allegation
underlies
all
five
lieu of
sale.
of Frauds
and evidence of
the alleged
oral
action
agreement.
The
statute,
RSA 506:1,
provides:
a contract for
"No
the sale of
or some
-1010
memorandum
Because the
on
Count
I (improper
Protection
judgment
Act),
foreclosure)
Shepard
and
and
Parks
damages only
Count V
(Consumer
recognize
that
the
They
by
the
introduction
of
evidence of
the
oral
agreement,
requiring reversal.
The
applicable
here.
whether
parties agree
on its
They expend
face to
that the
the
Statute of
oral agreement
Frauds is
in question
disagreeing about
factual circumstances.
In
doing so,
the parties
miss the
Frauds.
There
is no
need
here to
decide the
existence,
to
the Statute
agreement
between
performance
enforcement
evidence.
Frauds (the
so-called "oral
settlement
attorneys"
exception
the
exception).
Hampshire law,
relevant
of
hold instead
the Statute of
Frauds is
Evidence of the
to
We
the
counts
and
that, under
only a bar
it is not
oral agreement in
alleging
-1111
part-
improper
New
to the
a rule of
foreclosure,
misrepresentation,
violation
raise
fraud,
and
unfair
trade
practice
in
admission.
We find
clear guidance
in New Hampshire
caselaw.
The
in Munson v. Raudonis,
______
________
387
RSA
oral promise
of
of a
the lack
writing.
In
should
have
counts
were merely
Statute
of Frauds.
"Barring an
been
action
reaching that
excluded because
holding, the
the
four
back-door attempt
non-contract
to circumvent
the
in
deceit because
of
the
Statute
of
Id.
___
In
must fail.
See
___
also
____
of Frauds did
if
The
often
relied
Restatement (Second)
upon
by
the
New
-1212
of
Contracts, a
Hampshire
Supreme
source
Court,
provides
additional support
Tsiatsios
_________
v.
Tsiatsios, 663
_________
for
this result.
A.2d
(following
the Restatement);
1079, 1082
318,
provides
that "[t]he
unenforceable
purpose
The
contract
other
statute."
Comment
Statute
than
its
Patch
_____
1335,
See,
___
e.g.,
____
1339 (N.H.
1995)
v. Arsenault,
_________
of Frauds
inadmissible
in
enforcement in
does
despite occasional
Section
143 explains
not make
an
evidence
for
any
violation
of
the
to
653 A.2d
that
143 (1981).
"the
Statute,
It
reason for
was his
does not
matter
Id.
___
that
the magistrate
conclusion
that a
143 cmt. a.
purported
"lawyer's
exception) put
While we
we
even
settlement
the part-performance
judge's
Statute of Frauds.
relied on a
different ground.
See
___
United States v. Nivica, 887 F.2d 1110, 1127 (1st Cir. 1989)
______________
______
(no
reversal
incorrect
where
basis, if
trial
properly
court
admits
evidence
admissible for
same
on
an
purpose
under
different rule
of evidence),
cert. denied,
_____ ______
494 U.S.
-1313
1005 (1990);
Alioto, 26
______
F.3d 201, 204 (1st Cir. 1994) (appellate court free to affirm
Because the
was
admissible
for
agreement, i.e.,
because the
judgment,
purposes
other
breach
there is
of contract
no
than
enforcing
that
count
did not
reversible error
affect
in the
the
magistrate
2. Duplicative Damages
______________________
The jury
LaBarres' property
of the
time of foreclosure.
the LaBarres
credit
balance.
for
the
full $170,000
as
Parks on the
an
offset
mortgage
$150,000
credit,
as
the
parties
had
allegedly
for
agreed.
Shepard and Parks have not appealed the award of the $170,000
Because Shepard
the foreclosure
of
a damages award of
only $87,500 at
is the equivalent
LaBarres in the
position they would have been in if Shepard and Parks had bid
-1414
this
award
made the
LaBarres
whole,
or
better, for
the
improper foreclosure.
The
Consumer
jury
Protection
LaBarres actual
also found
Act by
damages of
that
the
violation of
the
Shepard
and
Parks caused
the
jury trebled
above
Consumer Protection
Act award
times $82,500,
the LaBarres
magistrate
provided
judge
an
opined
independent recovery,
improper duplication.
error,
that the
Consumer
and
The
Protection Act
thus
there was
no
reduced
recovery.
We agree.
It
is evident
from the
record, and
the LaBarres
I (improper
on
Count I
subsumed)
(in which
was based
all the
on the
The award
four common-law
counts were
$82,500 difference
between the
fair
value and
the
obviously reflecting
bid price;
the same
the
same amount,
difference
$82,500,
between the
fair
-1515
value
and
the bid,
that
this
was awarded
358-A count.
quadruple award
and trebled
Nonetheless, the
was
proper
(to $247,500)
LaBarres argue
because
they
are
entitled to an
New Hampshire's
The
statute
LaBarres, however,
or in
contention
any New
that
"independent
the
Hampshire case
Consumer
recovery."
authority directly on
point
We
to
nothing in
that
supports their
Protection Act
have
found
point, but we
Hampshire's Supreme
Court
would
against duplicative
recoveries and
provides
no New
its
an
Hampshire
follow
the
general
New
rule
award in
637 A.2d
906, 912
(N.H. 1994)
("[T]he plaintiff
multiple
recoveries
for the
same
loss
is not
entitled to
merely because
he
(recovery
of
same
damages
under
the award
causes
impermissible).
We
duplicative, and
hold that
two
allowable under
in this
of
action
case was
the Consumer
Protection
Act.
The
affirming a
LaBarres argue
damage award
that a
under
-1616
Massachusetts decision
the Massachusetts
Consumer
Gen. L. ch.
93A, supports by
in this case.
The
analogy
cited case,
N.E.2d 854,
398
(Mass. 1988),
The
plaintiffs
Protection
Act
does not,
in
however, provide
Multi Technology
_________________
damages
in
addition
any support.
received
to
contract
Consumer
damages
of damage.
Id.
___
The
a reduced fee
and the
agreed-upon reduced
damages.
Id.
___
fee as Consumer
fee
Protection Act
Contrary
misleading
citation
to the
of
LaBarres'
assertions
Multi Technology,
_________________
and
the
their
quadruple
law, as well as
In Calimlim v.
________
Foreign
_______
Car Ctr., Inc., 467 N.E.2d 443, 448 (Mass. 1984), the Supreme
______________
of conduct which
of any common
law,
violation
of
the
Consumer
Protection
Act,
recovery
of
-1717
holding in
allegations
under
unquestionably
and the
the common
Calimlim would
________
law
items of
actual damages
and Consumer
the factual
are identical
Protection Act
counts.
826 P.2d
819,
recovery for
and
822-24
(Colo.
violation of
1992) (en
banc)
Colorado Consumer
(no
double
Protection Act
arising out of
same set of
To
recapitulate, we
hold
that the
LaBarres were
IV.
IV.
___
Conclusion
Conclusion
__________
LaBarres
shall
be
reduced
case
is
remanded to
by $82,500,
and
any
to the
interest
the magistrate
judge
for entry
The
of a
-1818