Bostec Systems, Inc. v. Mastercard Int'l

USCA1 Opinion









June 25, 1996 [NOT FOR PUBLICATION]

UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT

____________________

No. 96-1055

BOSTEC SYSTEMS, INC.,

Plaintiff, Appellant,

v.

MASTERCARD INTERNATIONAL, INC.,

Defendant, Appellee.

____________________


APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF MASSACHUSETTS

[Hon. W. Arthur Garrity, Senior U.S. District Judge] __________________________
[Hon. Patti B. Saris, U.S. District Judge] ___________________

____________________

Before

Selya, Cyr and Boudin,

Circuit Judges. ______________


____________________



Andrew Schultz, with whom Michael S. Field, Dimitrios Ioannidis, ______________ ________________ ___________________
Beth Pirro Cook and Field & Schultz were on brief for appellant. _______________ _______________
Andrew W. Goldwater, with whom Friedman & Kaplan LLP was on brief ___________________ _____________________
for appellee.


____________________


____________________














Per Curiam. Appellant Bostec Systems, Inc. challenges Per Curiam. __________

a summary judgment dismissing its breach of contract and

promissory estoppel claims against Mastercard International, Inc.

Bostec argues that a trialworthy factual dispute remains as to

whether Mastercard promised to require its members to purchase a

machine capable of affixing tamper-evident, paper signature _____

panels to credit cards were Bostec to design and develop such

a machine. Following plenary review, Laura Thorn, Ltd. v. __________________

Alletzhauser, 71 F.3d 991, 993 n.4 (1st Cir. 1995), after careful ____________

consideration of Massachusetts law and the entire record as

illuminated by the briefs and oral argument, we are persuaded

that the district court correctly concluded, as a matter of law,

that though Mastercard encouraged Bostec's developmental

efforts, it made no express or implicit promise that could

support either a contract claim or a promissory estoppel claim.1

Viewed in the light most favorable to Bostec, the

evidence reveals that Mastercard broached its idea for the

development of a signature panel machine to Bostec in March 1987,

and monitored Bostec's progress before finally approving a Bostec

paper signature panel prototype in December 1991. Bostec

____________________

1See Rhode Island Hosp. Trust Nat'l Bank v. Varadian, 647 ___ _____________________________________ ________
N.E.2d 1174, 1179 (Mass. 1995) ("[A]n action based on reliance
[e.g., promissory estoppel] is equivalent to a contract action,
and the party bringing such an action must prove all the
necessary elements of a contract other than consideration.");
Simons v. American Dry Ginger Ale Co., 140 N.E.2d 649, 652 (Mass. ______ ___________________________
1957) ("All the essential terms of a contract must be
sufficiently definite so that the nature and extent of the
obligations of the parties can be ascertained." (citation
omitted)).

2












concedes, however, that no enforceable promise was made prior to

Mastercard's March 1990 letter, which confirmed its commitment to

require Mastercard members to use a "new secure signature panel."

Instead, Bostec contends that it is the entire course of dealings

between the parties that evinces a promise to require Mastercard

members to use only the paper signature panel machine developed _____

by Bostec at Mastercard's suggestion.

Neither the course of dealings between the parties nor

the March 1990 letter generated a trialworthy claim that

Mastercard made a "sufficiently definite" promise to require its

members to use, or acquire, only a tamper-evident, paper _____

signature panel on its credit cards. See Simons v. American Dry ___ ______ _____________

Ginger Ale Co., 140 N.E.2d 649, 652 (Mass. 1957); supra note 1. _______________ _____

In November 1988, Mastercard sent Bostec (and others)

specifications, explicitly permitting signature panels to be made

from paper, mylar, film, or other comparable material.

Mastercard informed Bostec in May 1989 that it would not grant a

monopoly to any one equipment supplier. Finally, the March 1990

letter confirming Mastercard's commitment to a "new secure

signature panel" cannot support a reasonable inference that

Mastercard promised to require its secure signature panels to be

made from paper to the exclusion of all other materials, or to

require its members to purchase Bostec's paper signature panel _____

machine. Absent evidence of a sufficiently definite promise, the

Bostec claims fail as a matter of law. See supra note 1. ___ _____

Affirmed. Affirmed. ________


3