477 HARRISON AVE., LLC vs. JACE BOSTON, LLC, & another.
Supreme Judicial Court of Massachusetts
May 23, 2017
477 Mass. 162 (2017)
Suffolk. January 5, 2017. - May 23, 2017.
Present: GANTS, C.J., BOTSFORD, LENK, HINES, GAZIANO, LOWY, & BUDD, JJ.
Discussion of the provision in
In an appeal from the denial of a special motion to dismiss under
In remanding to the Superior Court a civil action alleging, inter alia, abuse of process, in which the defendants, who sought a special motion to dismiss under
CIVIL ACTION commenced in the Superior Court Department on March 23, 2015.
A special motion to dismiss was heard by Dennis J. Curran, J.
The Suрreme Judicial Court granted an application for direct appellate review.
Mark S. Furman (Emily C. Shanahan also present) for the defendants.
Andrew E. Goloboy (Ronald W. Dunbar, Jr., also present) for the plaintiff.
LENK, J. This case involves the application of
We consider first whether the defendants have met their threshold burden under the anti-SLAPP statute of showing that each claim is solely based on the defendants’ petitioning activity. See Duracraft Corp. v. Holmes Products Corp., 427 Mass. 156, 167 (1998) (Duracraft). We conclude that they have done so as to the abuse of process claim, but not as to the
1. Background. We summarize the relevant facts from the pleadings and affidavits that were before the motion judge. See Benoit v. Frederickson, 454 Mass. 148, 149 (2009). In December of 2011, the plaintiff purchased a parcel of property located at 477 Harrison Avenue (477 Harrison) containing a five-story brick building with the intent to redevelop it for residential use. In preparation for this redevelopment, the plaintiff‘s building manager, John Holland, met with Arthur Leon, the sole owner of JACE Boston, LLC, which owned the building at 1234 Washington Street (1234 Washington) that shared a wall with the plaintiff‘s building.4 According to the plaintiff, Leon asked Holland to delay the redevelopment of 477 Harrison so that the defendants could redevelop 1234 Washington. Richard J. Leon attested that his cousin, the defendant Leon, told him of “his intention to wait [the plaintiff] out until [the plaintiff] fell into bankruptcy on the loan and that [he] would then purchase 477 Harrison Avenue from the bank for” a fraction of what the plaintiff paid to purchase the property.5 The plaintiff did not accede to Leon‘s purportedly requested delay.
During the summer of 2012, the defendants brought a declaratory judgment action regarding rights to the parties’ shared wall. The defendants’ claim rested on an indenture and agreement dated June, 1926, which provides that the owner of the “garage building” then under construction at 1234 Washington Street would have the “right and easement” “to tie unto and to use for the support of said garage building the northeasterly wall... of the stable” then at 477 Harrison Avenuе “to a height not exceeding two stories nor more than thirty four feet above the line of the present curbstone at the westerly corner of Harrison Avenue and Perry Street.” In September, 2014, a Superior Court judge ruled that this agreement referenced the parties’ respective buildings, and that it precluded the plaintiff from demolishing the party wall between the two properties below the height specified in the agreement.
With these matters pending and its redevelopment plans thereby stalled, the plaintiff opted for what it hoped would be a faster path forward. In September, 2013, as the parties’ summary judgment motions awaited resolution in the Superior Court, the plaintiff abandoned its request for zoning relief, then on appeal, to pursue instead an “as of right project.”6 The plaintiff obtained a short form building permit from the inspectional services department (ISD) in October of 2013, from which the defendants promptly appealed. Armed with the permit, however, the plaintiff notified the defendants that it intended to commence work on the parties’ shared wall in late November, 2013. The defendants immediately sought a preliminary injunction to prevent the plaintiff‘s construction. Rejecting the defendants’ application for eq-
And with that, the plaintiff finally began redeveloping its property in January, 2014, two years after it initially had told Leon about its plans. Prior to commencing construction, the plaintiff provided the defendants with copies of the ISD short form permit, the order from the judge permitting removal of the undisputed portions of the wall, project plans, and an insurance certificate. The defendants again sought injunctive relief to prohibit the plaintiff from entering onto their property, and a Superior Court judge again denied the relief sought. The judge also issued an order expressly allowing the plaintiff to enter onto the defendants’ property to protect it from damage.
As the construction began, the conflict continued,7 coming to a climax in December, 2014. At that time, Leon filed a police report reflecting that Holland‘s employees were standing on the defendants’ roof and thereafter brought an application for a criminal complaint alleging that Holland had trespassed illegally on his property.8 The clerk-magistrate at the Boston Municipal Court found insufficient probable cause to support the charge, and dismissed the complaint. In January, 2015, the plaintiff again sought to construct penthouses on its property, and requested the requisite zoning relief from the ZBA. The defendants provided a written opposition, but the ZBA granted the plaintiff its requested relief. The defendants once again appealed from this determination to the Superior Court.
Shortly thereafter, and more than three years after the plaintiff first had begun pursuing its redevelopment plans, the plaintiff filed a complaint against the defendants in the Superior Court, claiming abuse of process and a violation of
In response to the plaintiff‘s complaint, the defendants filed a special motion to dismiss pursuant to the anti-SLAPP statute. A Superior Court judge denied the special motion, concluding that the defendants “[could not] meet their burden under [the anti-SLAPP statute] to establish that the plaintiff‘s suit [was] solely based on their petitioning activity and [had] no other substantial basis” (emphasis in original).
2. Discussion. The defendants maintain that they have met their threshold burden and that the plaintiff has not then shown — as it must under Duracraft, 427 Mass. at 167, in order to defeat the special motion to dismiss — that the defendants’ petitioning activity lacked a reasonable factual or legal basis. They argue that the judge accordingly erred in denying their special motion to dismiss. The defendants are correct only in part. They have met their threshold burden as to the abuse of process claim but not as to the
a. Special motion to dismiss. The anti-SLAPP statute provides a “procedural remedy for early dismissal of” “lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom of speech and petition for the redress of grievances” (citation omitted). Duracraft, 427 Mass. at 161. That remedy is
If the special movant is able to make this showing, the burden shifts to the nonmoving party, here the plaintiff, to defeat the special motion to dismiss. Following today‘s decision in Blanchard, the nonmoving party can now meet its second stage burden in two ways. It may first establish “by a preponderance of the evidence that the [special movant] lacked any reasonable factual support or any arguable basis in law fоr its petitioning activity,” Baker v. Parsons, 434 Mass. 543, 553-554 (2001), and that the petitioning activity caused the nonmoving party “actual injury” — i.e., that its petitioning activity is illegitimate.
b. Defendants’ threshold burden. In order to meet its threshold burden, the special movant must demonstrate that the nonmoving party‘s claims are “solely based on” the special movant‘s petitioning activities (emphasis and quotations omitted). Duracraft, 427 Mass. at 165. A special movant‘s motivation for engaging in petitioning activity does not factor into whether it has met its threshold burden. See Office One, Inc. v. Lopez, 437 Mass. 113, 122 (2002). Rather, the key inquiry here is whether “the only conduct complained of is... petitioning activity.” Fabre v. Walton, 436 Mass. 517, 524 (2002). In assessing the conduct that is complained of, a judge considers only the allegations that are relevant to the discrete causes of action brought.
i. The abuse of process claim. An abuse of process claim involves three elements: “[1] that process was used, [2] for an
As we noted in Fabre, however, this does not mean that an abuse of process claim will always be solely based on a special movant‘s petitioning activities. See Fabre, 436 Mass. at 524 n.10. Although a party‘s invocation of process alone may give rise to a colorable abuse of process claim in certain circumstances, see, e.g., Carroll v. Gillespie, 14 Mass. App. Ct. 12, 26 (1982) (upholding abuse of process claim where autоmobile repair shop owner filed criminal complaint against customer to pressure her to pay repair bill), a cognizable claim can also involve a subsequent misuse of such process by the offending party that is not itself petitioning activity. See Kelley v. Stop & Shop Cos., 26 Mass. App. Ct. 557, 558 (1988) (“subsequent misuse of the process... constitutes the misconduct for which liability is imposed” [citation omitted]). See also Adams v. Whitman, 62 Mass. App. Ct. 850, 855-856 (2005), and cases cited (discussing these two types of abuse of process claims). For example, a party‘s attempt to use an invocation of process to extort an opposing party constitutes a substantial nonpetitioning basis for an abuse of process claim. See, e.g., Keystone Freight Corp. v. Bartlett Consol., Inc., 77 Mass. App. Ct. 304, 315-316 (2010). Subsequent misuse of process, as long it as it is not also petitioning activity, may thus provide a nonpetitioning basis for a nonmoving party‘s abuse of process claim. The question here then is whether the plaintiff alleges that the defendants engaged in any conduct germane to its abuse of process claim, apart from their invocations of process, which can provide a “substantial basis” for its claim.
The defendants’ allegedly false insurance claims fail to provide a substantial nonpetitioning basis for the plaintiff‘s abuse of process claim because they do not bear any apparent relation to it. Filing an insurance claim does not constitute process in and of itself, see Jones v. Brockton Pub. Mkts., Inc., 369 Mass. 387, 390 (1975) (process defined as “the papers issued by a court to bring a party or property within its jurisdiction“), and the defendants do not suggest any connection between the insurance claims and the defendants’ use of process. As such, the insurance claims do not support the plaintiff‘s claim of abuse of process.
Although Leon‘s statements have obvious relevance to the sеcond element of the tort (use of process for an ulterior or illegitimate purpose), the inquiry here is not as to the sufficiency of the complaint under Mass. R. Civ. P. 12 (b) (6), 365 Mass. 754 (1974). The inquiry instead is whether, in connection with the statutory special motion to dismiss, the defendants have satisfied their threshold burden, an inquiry that focuses on the actual conduct complained of, and not the defendants’ motivations for engaging in it. See Fabre, 436 Mass. at 523-524 (special movant‘s purported statements suggesting ulterior motivation behind petitioning activity did not provide “substantial basis other than or in addition to the petitioning activities implicated” [emphasis in original; citation omitted]). See also North Am. Expositions Co. Ltd. Partnership v. Corcoran, 452 Mass. 852, 863 (2009) (“the fact that... speech involves a commercial motive does not mean it is not petitioning“); Office One, Inc., 437 Mass. at 122 (focus in initial stage of anti-SLAPP inquiry is “on the conduct complained of, and, if the only conduct complained of is petitioning activity, then there can be no other ‘substantial basis’ for the claim” regardless of the “motive behind [the] petitioning activity” [emphasis and citation omitted]). Otherwise put, the focus at the threshold burden stage is on whether the conduct complained of consists only of the defendants’ petitioning activity; here, the only conduct complained of is the process the defendants used. Although the statements at issue may explain the motivation
ii. Chapter 93A claim. The plaintiff‘s
Whilе less than ideally pleaded, the plaintiff‘s complaint unmistakably alleges that the defendants’ filing of false insurance claims against the plaintiff‘s construction company formed part of the unfair or deceptive practices that the defendants engaged in to halt the plaintiff‘s redevelopment projects and thereby harm the plaintiff financially.11 See Auto Flat Car Crushers, Inc. v. Hanover Ins. Co., 469 Mass. 813, 820 (2014) (plaintiff bringing
c. The plaintiff‘s second-stage burden. Because the defendants have met their threshold burden with respect to the plaintiff‘s abuse of process claim, the plaintiff may defeat the special motion to dismiss this claim by demonstrating, “by a preponderance of the evidence,” that the defendants’ petitioning activity upon which its abuse of process claim is based is illegitimate — i.e., that it “lacked any reasonable factual support or any arguable basis in law,” Baker, 434 Mass. at 553-555, and caused it “actual injury,”
We note two relevant considerations in determining whether this little-discussed second-stage burden has been met. First, a plaintiff cannot meet its burden merely by presenting affidavits contradicting the factual basis of the special movant‘s petitioning activities, see Benoit, 454 Mass. at 154 n.7, or demonstrating that the petitioning activities were unsuccessful. “The critical determination is not whether the petitioning activity in question will be successful ...“; it is instead whether the petitioning activity “contains any reasonable factual or legal merit at all.” Wenger v. Aceto, 451 Mass. 1, 7 (2008). Second, the defendants’ motivation for engaging in petitioning activity does not factor into whether their petitioning activity is illegitimate.12 See id. at 8 (nonmoving party‘s contention that special movant filed criminal complaint with ulterior motive irrelevant because criminal complaint had reasonable basis in law). Rather, the relevant inquiry is whether the plaintiff has demonstrated that the defendants’ petitioning activity lacks an objectively reasonable basis. See
Our review of the record suggests that the defendants engaged in six separate instances of petitioning activities:13 (1) the submission of written and oral statements to the BRA and the ZBA;
The plaintiff‘s argument that Leon‘s police report lacked a reasonable basis in fact or law is unavailing. The police report recounts Leon‘s observation that the plaintiff‘s workers were standing on his roof — which the record suggests they were, albeit on planking supported by rubber tires — and that they remained there despite his warnings to the plaintiff that they were trespassing. Given that the record supports this account of the events, the police report does not itself lack a reasonable basis in fact or law.
The plaintiff is on firmer ground in his argument concerning Leon‘s application for a criminal complaint. The application was purportedly filed in response to the presence of the plaintiff‘s construction workers, along with various materials and chemicals, on the roof of 1234 Washington Street. The application for a criminal complaint was dismissed for lack of probable cause. Although this in and of itself is not fatal to the defendants’ petitioning activity, see Benoit, 454 Mass. at 153-154, Leon‘s application for a сriminal complaint came after a Superior Court judge explicitly granted the plaintiff the affirmative right to trespass on the defendants’ property to protect it from damage. The combination of the lack of probable cause finding and the Superior Court order supplies the requisite preponderance of the evidence in favor of the conclusion that the criminal complaint lacked any reasonable basis in fact or law.
The plaintiff also has demonstrated that the defendants’ application for a criminal complaint caused it actual injury. Holland stated in an affidavit that he suffered “embarrassment” from the criminal complaint, that he had to attend a probable cause hear-
This then presents the novel issue as to whether all or only some of a special movant‘s petitioning activities must be shown to be illegitimate in order to defeat a special motion to dismiss. The text of the anti-SLAPP statute is silent on the point, and we look to the intent of the Legislature for insight. See Hanlon v. Rollins, 286 Mass. 444, 447 (1934). The legislative purpose of the anti-SLAPP statute is to provide for the expeditious dismissal of suits targeting the “valid exercise of the constitutional right[ ] of... petition for the redress of grievances.” See Duracraft, 427 Mass. at 161, quoting 1994 House Doc. No. 1520.
Applying this legislative purpose to the case at hand, the petitioning activity that has been shown to lack a reasonable basis in law or fact is not the “valid petitioning” that the statute protects. The situation is different as to the remaining petitioning activity, which the plaintiff has failed to show is illegitimate and is therefore presumptively protected. We therefore determine that the defendants’ legitimate petitioning activity is protected by the statute. Were we to conclude otherwise, a nonmoving party effectively could elude the protections of the anti-SLAPP statute if it could prove that one small portion of a special movant‘s petitioning activity was illegitimate. What this means is that, unless the plaintiff can, on remand, show that the entirety of its abuse of process claim is not a “SLAPP” suit under the augmented Duracraft framework, see Blanchard, 477 Mass. at 159-161,14 it may proceed only on so much of its abuse of process claim as alleges illegitimate process, i.e., Leon‘s application for a criminal complaint. In that event, the special motion to dismiss such portion of the abuse of process claim arising out of the defendants’ protected petitioning activities shall be allowed and an
ii. Remand. In light of our decision in Blanchard, we remand this case to the Superior Court to allow the plaintiff to show that its abuse of process claim is not a “SLAPP” suit under the augmented Duracraft framework. See Blanchard, 477 Mass. at 159-161. “It may do so by demonstrating that [its abusе of process claim] was not primarily brought to chill the special movant‘s legitimate petitioning activities,” i.e., by establishing, “such that the motion judge may conclude with fair assurance, that its primary motivating goal in bringing its [abuse of process claim], viewed in its entirety, was ‘not to interfere with and burden defendants’ ... petition rights, but to seek damages for the personal harm to [it] from [the] defendants’ alleged ... [legally transgressive] acts.’ ” Id. at 160, quoting Sandholm, 2012 IL 111443, ¶ 57.
3. Conclusion. The denial of the defendants’ special motion to dismiss is affirmed with respect to the plaintiff‘s claim under
So ordered.
