Quarterman v. City of Springfield
AC 16-P-223
| Mass. App. Ct. | Mar 29, 2017Background
- Quarterman, an African American nightclub owner, applied in 2006 (Exile Entertainment, Inc.) for a Springfield liquor license; the board denied the application after Mayor Ryan (not a named defendant) opposed it. Quarterman had earlier filed MCAD complaints (2005 and 2006) alleging discrimination and retaliation.
- A jury found no racial discrimination but found retaliation by the city (through Mayor Ryan) in violation of G. L. c. 151B and awarded $350,000 ($250,000 lost profits; $100,000 emotional distress).
- The trial judge denied the city’s motion for judgment n.o.v. on liability but granted the city’s Rule 59(e) motion in part, eliminating the $250,000 lost-profits award and leaving $100,000 for emotional distress.
- The judge concluded lost-profits evidence (Quarterman’s unsupported personal estimate) lacked reasonable certainty and that Quarterman, as a 30% shareholder, lacked standing to recover corporate lost profits absent evidence of a direct distribution.
- The court affirmed: liability for retaliation (denying judgment n.o.v.); elimination of lost-profits damages; affirmation of $100,000 emotional-distress award; and affirmance of attorney’s fees award (judge found time expended on lost-profits was intertwined with successful claims).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether evidence permitted a jury finding of retaliation under G. L. c. 151B § 4(4) | Quarterman: mayor’s unusual involvement, recruitment of witnesses, and persuasive opposition caused denial; MCAD complaints were protected activity | City: denial was for legitimate nonretaliatory reasons (location, history, prior venue problems); evidence insufficient to show causation or pretext | Affirmed: when viewed favorably to Quarterman, evidence was sufficient to let jury find retaliation |
| Whether lost profits are recoverable under c. 151B | Quarterman: lost profits from the would‑have‑opened club are a direct consequence of retaliation; recoverable | City: even if recoverable, plaintiff failed to prove lost profits with reasonable certainty and lacked standing (corporate injury) | Court: lost profits are in principle recoverable, but here evidence lacked reasonable certainty and Quarterman lacked standing to recover corporate profits; award vacated |
| Whether jury should have been instructed on mayor’s free political speech | Quarterman: not applicable; focus on retaliation | City: mayor entitled to political speech protection; instruction needed to weigh speech rights | Denied: existing instructions sufficiently allowed governmental policy judgments but clarified speech does not permit retaliatory denial |
| Whether attorney's fees should be reduced after elimination of lost-profits award | Quarterman: time spent on lost-profits proof inseparable from other claims; full fee award appropriate | City: fees should be reduced proportionally to the eliminated damages/claims | Affirmed: judge did not abuse discretion in concluding claims and work were inextricably intertwined and awarding full fees |
Key Cases Cited
- Abramian v. President & Fellows of Harvard College, 432 Mass. 107 (demonstrating retaliation is a separate c.151B cause of action)
- Mullins v. Pine Manor College, 389 Mass. 47 (standard for judgment n.o.v.)
- Tate v. Department of Mental Health, 419 Mass. 356 (elements of retaliation claim under c.151B)
- Conway v. Electro Switch Corp., 402 Mass. 385 (compensatory damages under c.151B aim to make the aggrieved whole)
- Stonehill College v. Massachusetts Commn. Against Discrimination, 441 Mass. 549 (emotional distress damages recoverable under c.151B)
- DeRoche v. Massachusetts Commn. Against Discrimination, 447 Mass. 1 (back pay as compensatory relief under c.151B)
- Haddad v. Wal‑Mart Stores, Inc., 455 Mass. 91 (front pay as a remedy under c.151B)
- Jet Spray Cooler, Inc. v. Crampton, 377 Mass. 159 (lost profits as measure of damages in business torts)
- Herbert A. Sullivan, Inc. v. Utica Mut. Ins. Co., 439 Mass. 387 (lost profits must be proved to a reasonable degree of certainty)
- Bain v. Springfield, 424 Mass. 758 (context for mayoral speech and limits when urging government action)