42 Mass. App. Ct. 572 | Mass. App. Ct. | 1997
A judge of the Superior Court denied the defendants’ special motions to dismiss under G. L. c. 231, § 59H, added by St. 1994, c. 283, § 1, commonly referred to
In 1992, while Marino was working for Duracraft, Holmes commenced an opposition proceeding against Duracraft before the Federal Trademark Trial and Appeal Board (TTAB), alleging that Duracraft had improperly registered the word “turbo” as a trademark. In November, 1995, Holmes noticed Marino’s deposition in the TTAB proceeding. Marino was then working for Accutek. The deposition was postponed, re-noticed in January of 1996, and taken on February 7, 1996, by which time Marino was again employed by Holmes. Present at the deposition were four attorneys for Holmes, two attorneys for Duracraft, and Marino.
Duracraft, in an unverified complaint filed in March, 1996, alleges that during Marino’s deposition, counsel for Holmes elicited, and Marino disclosed, confidential information concerning the “turbo” trademark litigation and related intellectual property matters. Duracraft also alleges that Marino met with attorneys for Holmes prior to the deposition and offered to provide such deposition testimony. The claims against Marino and Holmes are for breach of contract, breach of fiduciary duty, intentional interference with contractual relations, misappropriation of trade secrets, unfair competition, and unfair and deceptive acts and practices. Holmes and Marino then moved to dismiss these claims under the statute.
The judge, relying on what she reasonably perceived to be the objective of anti-SLAPP statutes enacted in other jurisdictions, viz., “to protect citizens from lawsuits designed to silence their opposition concerning a matter of public concern,” as well as the public reports of House floor debates, ruled that the mischief the statute was designed to remedy were “incidents involving citizens sued for speaking out on issues of public concern” (emphasis in original). Applying that standard, the judge found that Marino’s testimony during his deposition was not protected by the statute because a
1. Matters of public concern. We look first to the words of the statute to determine whether, as Duracraft argues, the statute is confined to claims against persons exercising their right of petition in a matter of public concern. “It is elementary that the meaning of a statute must, in the first instance, be sought in the language in which the act is framed, and if that is plain, . . . the sole function of the court is to enforce it according to its terms.” Massachusetts Community College Council v. Labor Relations Commn., 402 Mass. 352, 354 (1988). See also Singer, Sutherland Statutory Construction § 46.01, at 81 (5th ed. 1992), quoting from Caminetti v. United States, 242 U.S. 470, 485 (1917).
The statute grants to any party against whom a claim is brought by reason of that party’s exercise of his “right of petition under the constitution of the United States or of the commonwealth,” the right to file a special motion to dismiss the claim.
The focus of Duracraft’s argument is that, aside from the
It is true that similar statutes passed elsewhere reveal a general legislative purpose to protect activity designed to affect or influence governmental action regarding issues arguably of public concern or significance.
The bill was originally introduced on January 7, 1993, as House No. 3033. It was captioned, “An Act Limiting Strategic Litigation Against Public Participation.” Section 1 of the bill inserted § 59H, the first sentence of which reads as follows: “In any case in which a party asserts that the civil claims, counterclaims, or cross claims against said party are based on said party’s lawful exercise of its right of petition or of free speech under the constitution of the United States or of the commonwealth [szc] in connection with a matter of public concern, said party may bring a special motion to dismiss” (emphasis added).
On December 7, 1993, the House changed the title of the bill to read, “An Act Protecting the Public’s Right to Petition Government.” On December 21, 1993, the bill was amended in the Senate by striking from the first paragraph of § 59H (following a reference to a party’s “lawful exercise of its right of petition”) the phrase “in connection with a matter of public concern,” and by striking from the definition of “a party’s exercise of its right of petition or of free speech,” the phrase “or any written or oral statement made in connection with an issue of public concern.”
On December 30, 1993, the House approved the amendments adopted in the Senate. The bill as amended was passed by both chambers on January 3, 1994. The Governor vetoed the legislation on January 14, 1994. House No. 3033, as
Given the legislative history just recited, there is no basis for this court to reinsert the rejected condition that the moving party’s activity must involve a matter of public concern. Singer, Sutherland Statutory Construction § 47.38, at 290-291 (5th ed. 1992). King v. Viscoloid Co., 219 Mass. 420, 425 (1914) (“we have no right to . . . read into the statute a provision which the Legislature did not see fit to put there, whether the omission came from inadvertence or of set purpose”). Bronstein v. Prudential Ins. Co., 390 Mass. 701, 706 (1984) (reiterating the language just quoted from King). Callahan v. A.J. Welch Equip. Corp., 36 Mass. App. Ct. 608, 611-612 (1994). Compare Cranberry Realty & Mortgage Co. v. Ackerley Communications, 17 Mass. App. Ct. 255, 257 (1983). We conclude that the statute imposes no condition that the defendants’ statements involve issues of public concern.
It does not follow, however, that the defendants must prevail on their special motion to dismiss.
2. The immunity issue. Following arguments in this case, we asked the parties to file supplementary briefs on the question set out in the margin.
If we take the language of the statute literally, it might be said that the legislative intention was to immunize non-sham petitioning activity
Similarly, we conclude that § 59H must be construed to recognize Duracraft’s First Amendment right of petition by
To sum up, § 59H, although not limited to matters of public concern, must be construed, for constitutional reasons, not to preclude Duracraft’s action alleging a violation of its preexisting agreement of confidentiality.
Accordingly, we affirm the judge’s denial of the defendants’ special motion to dismiss.
So ordered.
“SLAPP” is an acronym for “Strategic Litigation Against Public Participation.” The acronym was coined by Professors Penelope Canaan and George Pring of the University of Denver. See Pring, SLAPPs: Strategic Lawsuits Against Public Participation, 7 Pace Envtl. L. Rev. 3, 4 (1989).
General Laws c. 231, § 59H, applies “[i]n any case in which a party asserts that the civil claims, counterclaims, or cross claims against said party are based on said party’s exercise of its right of petition under the constitution of the United States or of the commonwealth.” In such cases the statute provides that the party against whom such an action is commenced may bring a special motion to dismiss. The statute defines “a party’s exercise of its right of petition” as:
“[1] any written or oral statement made before or submitted to a legislative, executive, or judicial body, or any other governmental proceeding; [2] any written or oral statement made in connection with an issue under consideration or review by a legislative, executive, or judicial body, or any other governmental proceeding; [3] any statement reasonably likely to encourage consideration or review of an issue by a legislative, executive, or judicial body or any other governmental proceeding; [4] any statement reasonably likely to enlist public participation in an effort to effect such consideration; [5] or any other statement falling within constitutional protection of the right to petition government.”
Once the moving party “asserts” that the statute applies, the court “shall grant” the motion unless the non-moving party shows that: “(1) the moving party’s exercise of its right to petition was devoid of any reasonable factual support or any arguable basis in law and (2) the moving party’s acts caused actual injury to the responding party.”
The only prior reported appellate decision of which we are aware is Vittands v. Sudduth, 41 Mass. App. Ct. 515 (1996), a case which decides the issue of the effective date of G. L. c. 231, § 59H.
The motion is new to Massachusetts. The statute directs that the court “shall grant” the special motion unless the plaintiff (the non-moving party) shows that the defendant’s alleged petitioning activities have no basis in law or fact, and the plaintiff has been caused damages by reason of such activities. In this formulation, the merits of the plaintiff’s claim are not relevant.
For an extensive account of the history of the right of petition protected by the First Amendment to the United States Constitution, see Smith, “Shall Make No Law Abridging . . An Analysis of the Neglected, But Nearly Absolute, Right of Petition, 54 U. Cin. L. Rev. 1153, 1154-1183 (1986).
Article 19 of the Declaration of Rights states the right of the people to petition the “legislative body” for the redress of “wrongs done them, and of
Marino and Holmes argue that the statements made by them opposing Duracraft’s registration of the trademark “turbo” in the federal trademark proceedings may fall within statements [1] and [2] of the statute. The claims asserted against Marino were based on Marino’s testimony during his deposition in the TTAB proceeding, and therefore appear to be statements “made before . . . a . . . judicial body . . . .” The statements also appear to have been “made in connection with an issue under consideration or review by a . . . judicial body . . . .” While TTAB is an administrative agency, it “acts in a judicial capacity” in hearing and resolving disputes before it, and its decisions may be given preclusive effect. See EZ Loader Boat Trailers, Inc. v. Cox Trailers, Inc., 746 F.2d 375, 377-378 (7th Cir. 1984). In any. event “the [Federal] right of petition extends to all departments of the Government.” California Motor Transport Co. v. Trucking Unlimited, 404 U.S. 508, 510 (1972).
Duracraft does not argue that Federal constitutional protection of petitioning activity does not extend to private statements and grievances such ás are involved in this controversy. It is unlikely that such an argument would succeed. While the United States Supreme Court has not spoken directly to the issue, the availability of protection for petitioning activity involving private grievances is implicit in Bill Johnson’s Restaurants, Inc. v. National Labor Relations Bd., 461 U.S. 731, 741, 743 (1983) (NLRB’s order to terminate plaintiff’s state court action filed in response to allegedly unlawful union activity reversed. “[T]he right of access to the courts is an aspect of the First Amendment right to petition the Government for redress of grievances .... The First Amendment interests [are] involved in private litigation . . . .” See McDonald v. Smith, 472 U.S. 479, 484 (1985) (“filing a complaint in court is a form of petitioning activity” unless the complaint is “baseless litigation”); California Motor Transport Co. v. Trucking Unlimited, 404 U.S. at 510 (“The right of access to the
Duracraft’s principal argument is limited to the issue of the interpretation of § 59H (suggesting, it would seem, that § 59H is less broad than the constitutional right of petition). Thus, our discussion is on the premise, not disputed by Duracraft, that the Federal constitutional right of petition does not exclude the protection claimed by the defendants in this case.
In California, the statute protects each person who has acted “in furtherance of the person’s right of petition or free speech under the United States or California Constitution in connection with a public issue . . . .” Cal. Civ. Proc. Code § 425.16 (West Supp. 1997). The Delaware statute is available only when a person “has applied for or obtained a permit, zoning change, lease, license, certificate or other entitlement for use or permission to act from any government body.” Del. Code Ann. tit. 10, § 8136 (Supp. 1996). The statute in Minnesota protects “speech or lawful conduct that is genuinely aimed in whole or in part at procuring favorable government action.” Minn. Stat. Ann. § 554.01 (West Supp. 1997). The statute in Nevada protects a person “who in good faith communicates a complaint or information to a legislator, officer or employee of this state ... or ... of the Federal Government, regarding a matter reasonably of concern to the respective governmental entity . . . .” Nev. Rev. Stat. § 41.650 (1995). The statute in New York protects efforts “to report on, comment on, rule on, challenge or oppose” the action of “any person who has applied for or obtained a permit, zoning change, lease, license, certificate or other entitlement for use or permission to act from a government body . . . .” N.Y. Civ. Rights Law §§ 70-a, 76-a (McKinney Supp. 1997). The statute in Rhode Island protects “[a] party’s exercise of his or her right of petition or of free speech under the United States or Rhode Island Constitutions in connection with a matter of public concern . . . [including] “(e) . . . any written or oral statement made in connection with an issue of public concern.” R.I. Gen. Laws § 9-33-2 (Supp. 1996). The statute in Washington protects any good faith communication with any federal, state, or local government agency “regarding any matter reasonably of concern to that agency . . . .” Wash. Rev. Code § 4.24.510 (1994).
As noted in the Hunters Brook Realty Corp. case, 14 Mass. App. Ct. at 81 n.7, “It would have advanced consideration of this case substantially, both here and below, if . . . [both] parties had investigated and briefed the applicable legislative history.”
Other changes, not material to this controversy, were made in the Senate on December 21, 1993.
The preamble to House No. 1520 states that the “Legislature finds and declares that full participation by persons and organizations and robust discussion of issues before legislative, judicial, and administrative bodies and in other public fora are essential to the democratic process . . . .” The earlier House No. 3033 had inserted the words “of public concern” immediately after the words “discussion of issues.” Both House No. 3033 and House No. 1520 conclude with a reference to “citizens who have participated in matters of public concern.”
In this case, where we conclude that the enacting part of the statute, seen in the light of its legislative history, is plain, we attach no interpretive significance to the content of the preamble. See Brennan v. The Governor, 405 Mass. 390, 395 ? 76 (1989) (“Statements regarding the scope or purpose of an act that appear in its preamble may aid the construction of doubtful clauses, but they cannot control the plain provisions of the statute”); Singer, Sutherland Statutory Construction § 47.04, at 146-147 (5th ed. 1992) (“[T]he settled principle of law is that the preamble cannot control the enacting part of the statute in cases where the enacting part is expressed in clear, unambiguous terms”).
Given the legislative history of § 59H, we attach no importance — as Duracraft would have us do — to public statements attributed to the principal proponent of the legislation in the House. Those statements purport to identify the concern of the Legislature: “a person or group who has expressed an opinion on a matter of public concern.”
The elimination from § 59H of any requirement that the petitioning activities involve “issues of public concern” had the effect of broadening the statute as compared to the original draft in House No. 3033. Section 59H as it now stands is as extensive as the full'.reach of the petitioning clause of the First Amendment.
“Assuming, arguendo, that the availability of c. 231, § 59H, is not limited to issues of public concern, to what extent, if at all, does the defendants’ assertion of the right of petition under § 59H defeat, as matter of law, the plaintiff’s asserted claims arising from its pre-existing confidentiality agreement with the defendant Marino?”
The defendants’ immunity argument is based on the so-called NoerrPennington doctrine. That doctrine grew from two Supreme Court cases, Eastern R.R. Presidents Conference v. Noerr Motor Freight, Inc., 365 U.S. 127 (1961), and United Mine Workers v. Pennington, 381 U.S. 657 (1965). “The essence of the doctrine is that parties who petition the government for governmental action favorable to them cannot be prosecuted under the antitrust laws even though their petitions are motivated by anticompetitive intent.” Video Intl. Prod., Inc. v. Warner-Amex Cable Communications, Inc., 858 F.2d 1075, 1082 (5th Cir. 1988). Exceptions to the doctrine have to do with sham petitioning activities. See note 19, infra.
While the judge permitted limited discovery (i.e., the depositions of Marino and the president of Duracraft), the record appendix does not include evidence of that work, if there was any. The record appendix does include various affidavits, but none was filed in opposition to the defendants’ special motion to dismiss.
It is settled law that petitioning activity which is nothing more than “baseless litigation” is not protected by the First Amendment. See Professional Real Estate Investors, Inc. v. Columbia Pictures Indus., Inc., 508 U.S. 49, 60-61 (1993).
We reject the defendants’ argument that a judge must allow their special motion where the plaintiff fails to make any showing in response to the defendants’ special motion. It is true, as the defendants emphasize, that the statute provides that the court “shall grant . . . [the] special motion” unless a showing is made by the plaintiff. “However, the word ‘shall’ as used in statutes ... is not of inflexible signification and not infrequently is construed as permissive or directory in order to effectuate a legislative purpose.” Myers v. Commonwealth, 363 Mass. 843, 846 (1973). See Black’s Law Dictionary 1375 (6th ed. 1990) (shall “may be construed as merely permissive or directory [as equivalent to ‘may’], to carry out the legislative intention . . .”).
Whether, or the extent to which, that assumption may be valid in cases involving petitioning activities which also implicate First Amendment guarantees of freedom of speech or association, see California Motor Transport Co. v. Trucking Unlimited., 404 U.S. at 510-511, we need not consider, for no such rights of the defendants are involved in this case.
Finally, Duracraft argues that Marino and Holmes are not “legitimate petitioners” and that they do not meet the threshold requirement for application of the statute. Both contentions rest on the same foundation: TTAB ruled that Holmes’s deposition of Marino, its own employee, was not appropriate. “A party cannot take discovery of itself. . . .”
The TTAB decision, however, did not rule that Marino’s deposition was not a statement made in connection with an issue being considered before them. The TTAB ruling merely limited the use of Marino’s deposition, specifically noting that the deposition may still be used for impeachment purposes. The use of depositions in civil cases is generally so limited. See Mass. R.Civ.P.32(a)(l), 365 Mass. 787 (1974). Deposition testimony is, in our view, a statement made in connection with a judicial proceeding regardless of how the deposition itself is ultimately used. Compare Wilcox v. Superior Court, 27 Cal. App. 4th 809, 821-822 (1994) (memorandum sent to fellow court reporters notifying them of the plaintiffs lawsuit, and seeking their support, held to be statement in connection with the underlying judicial proceeding); Dove Audio, Inc. v. Rosenfeld, Meyer & Susman, 47 Cal. App. 4th 777, 784 (1996) (letter seeking endorsements for complaint to the State Attorney General found to be a statement made in connection with an official proceeding and covered by the anti-SLAPP statute). There is no merit to this argument.
Duracraft’s complaint alleges claims sounding in tort as well as contract. The tort claims appear to depend upon the validity of the contract claim. If the contract claim fails, the remaining counts may fail with it. If the contract claim survives, the parties will be required to consider whether, on the authorities cited in the text, the tort claims are entitled to survive Duracraft’s petitioning rights.