Opinion ID: 440314
Heading Depth: 2
Heading Rank: 2

Heading: Dr. Franklin Perkins School's Liability For Breach of Contract

Text: 51 The Dr. Franklin Perkins School argues that the district court erred in denying its motion for a directed verdict and for judgment notwithstanding the verdict with respect to the jury verdict finding the School liable to Dr. Freeman for breach of contract in the amount of $4,000 based on Dr. Spencer's failure to apply and obtain tuition reimbursement from Illinois as agreed in the June 28, 1980 telephone conversation. It asserts that such a verdict was contrary to the law and against the manifest weight of the evidence. 52 This motion for a directed verdict or in the alternative judgment notwithstanding the verdict can prevail only where considering the evidence most favorably to the non-moving party, it is still insufficient to support a verdict in his favor. DiMarzo v. S & P Realty Corporation, 364 Mass. 510, 306 N.E.2d 432, 435 (1974). Considering the evidence most favorably to Dr. Freeman, the judge's denial of the motions for directed verdict and for judgment notwithstanding the verdict on the breach of contract claim must be upheld since there is sufficient evidence to sustain a finding that the School breached a term of the June 28, 1980 oral contract when it neglected to apply for tuition reimbursement from Illinois. 53 Although, as stated earlier in this opinion, this was not a material breach, Dr. Freeman still may recover those damages incurred in order to enforce performance of the contract, see Louise Caroline Nursing Home Inc. v. Dix Construction Corp., 362 Mass. 306, 285 N.E.2d 904, 907-908 (1972), and is entitled to be reimbursed for any loss which occurred as a natural and probable consequence of the breach of contract. In this case the plaintiffs contend that the $4,000 damage award, consisting of travel and lodging costs, lost consulting fees and attorney expenses is the natural and probable result of the breach. The rule of damages in Massachusetts for breach of contract is that the injured party is entitled to damages sufficient to compensate him for the loss actually sustained and to put him in the same position he would have been in had the contract been performed. He is not entitled to extraordinary or unforeseen damages, but only to that loss which occurred as a natural and probable consequence of the breach and which was in contemplation of the parties at the time the contract was entered. Whitespot Construction Co. v. Jet Spray Cooler, Inc., 344 Mass. 632, 183 N.E.2d 719, 722 (1962); Boylston Housing Corp. v. O'Toole, 321 Mass. 538, 74 N.E.2d 288, 302 (1947). See also Restatement (Second) Contracts Sec. 351 (1979). 54 Under this analysis, Dr. Freeman is entitled only to the value of the contract, that is, what he would have received had the contract been performed. Any incidental loss must follow as a natural consequence of the breach and have been reasonably contemplated by the parties as being an approximate result of the breach. A party cannot be awarded damages that would put him in a better position than if the contract had been completely carried out. Louise Caroline Nursing Home, Inc., 362 Mass. 306, 285 N.E.2d at 907; Abrams v. Reynolds Metals Co., 340 Mass. 704, 166 N.E.2d 204, 207 (1960); Eastern Advertising Co. v. Shapiro, 263 Mass. 228, 161 N.E. 240, 242 (1928). Based on the foregoing damage principles, we hold there was insufficient evidence to support the award of damages to Dr. Freeman for the loss of 3 days consulting fees and attorney expenses. 55 Initially, the inclusion of lost consulting fees as an element of damages under these facts is unwarranted. Dr. Freeman's inability to work three additional consulting days during an entire year, 1980-1981, was not a natural consequence of the School's failure to obtain tuition reimbursement from the State of Illinois. Compensation for such injury could not have reasonably been contemplated by the parties as an approximate result of a dispute between the School and the Freemans over April's tuition. Further, our review of the record discloses that there is insufficient evidence to support Dr. Freeman's claim that he would have performed the consulting services if he had not had to travel on those given days to Massachusetts to discuss April's withdrawal from the School with Dr. Spencer. Dr. Freeman spent most of the second half of 1980 in Houston with his son while he received cancer treatments and any loss of consulting time is more likely attributable to this than to the School's breach of contract. Therefore, the damages for loss of consulting fees are denied. 56 Second, under Massachusetts law, attorney fees are not ordinarily recoverable as an element of damage. In this case, the attorney fees were incurred for legal proceedings in connection with obtaining an injunction against the School. The plaintiff in its brief argues that his expenses, including the attorney fees, are part of his contract damages; however, he never attempts to reconcile that position with Massachusetts law denying the award of attorney fees except in limited situations. We believe it is best to view these fees as the cost of pursuing a claim rather than as an element of damages. Otherwise, this Court may open a veritable pandora's box for many other such contract actions and thus create a large gap in the narrowly tailored Massachusetts exceptions. Expansion of these exceptions is best left to the Massachusetts courts. Thus, in Massachusetts recovery of attorney fees is allowed only in limited circumstances such as: 57 (a) in accordance with specific statutory provisions of court rules; 58 (b) pursuant to a valid contractual provision or stipulation; or 59 (c) as damages in certain exceptional circumstances, such as a case of malicious prosecution. See Chantrand v. Riley, 354 Mass. 242, 237 N.E.2d 10, 11 (1968). 60 Fuss v. Fuss, 372 Mass. 64, 368 N.E.2d 271, 274 (1977); see also Bournewood Hospital, Inc. v. Massachusetts Commission Against Discrimination, 371 Mass. 303, 358 N.E.2d 235, 238, 240 (1976). We hold there was insufficient, if any, evidence that the attorney fees included in Dr. Freeman's damage award met any of the exceptions listed above. In this situation, the rule in Massachusetts is that a litigant must bear the expense of pursuing his claim. 61 To the extent that the decision of the district court awarded damages for lost consulting fees and attorney fees, it is reversed. However, to the extent that the award consisted of Dr. Freeman's travel and lodging costs to enforce the School's promise to keep April at the School pursuant to the June 28, 1980 contract, as this expense was a natural and probable consequence of the contract breach, the judgment is affirmed. 62