Posts in Contract Negotiations.
Dismissing Fraud Claims, Judge Davis Rules Party’s Statement of Reasons or Motives Underlying Bargaining Position Constitutes Immaterial Fact

In Metal Seal Precision, Ltd. v. Sensata Technologies, Inc., Metal Seal sued Sensata for allegedly breaching the parties’ Memorandum of Understanding (MOU), which required Sensata to purchase minimum quantities of metal components from Metal Seal. Responding to the complaint, Sensata denied that it agreed to a minimum-quantities requirement. Sensata also alleged that the minimum-quantities requirement was unenforceable because it was based on Metal Seal’s fraud. According to Sensata, while negotiating the MOU, Metal Seal falsely represented that its insurer required that any contract with Sensata include minimum volumes of components.

Metal Seal moved for summary judgment on Sensata’s G.L. c. 93A and fraud claims. Metal Seal also moved for summary judgment on Sensata’s affirmative defense based on Metal Seal’s alleged “material misrepresentations.”

Justice: Justice Davis

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