Justia Massachusetts Supreme Court Opinion SummariesArticles Posted in Consumer Law
Anderson v. National Union Fire Insurance Co. of Pittsburgh Pa.
Odin Anderson, his wife, and his daughter (collectively, Plaintiffs) filed personal injury action for injuries Odin suffered after being struck by a bus owned by Partners Healthcare Systems that was being driven by one of its employees. Plaintiffs then filed a separate action against Partner’s insurers and claims representatives. A jury awarded Odin $2,961,000 in damages in the personal injury action and awarded Odin’s wife and daughter $110,000 each. At a subsequent jury-waived trial, a judge found that the insurers and claims representatives violated Mass. Gen. Laws ch. 93A and Mass. Gen. Laws ch. 176D by their misconduct. The judge awarded Plaintiffs treble damages using as the “amount of the judgment” to be multiplied the combined amount of the underlying tort judgment and the accrued postjudgment interest on that judgment. The appeals court affirmed. The Supreme Judicial Court vacated the judgment, holding that, in a case where the amount of actual damages to be multiplied due to a wilful or knowing violation of Mass. Gen. Laws ch. 93A or Mass. Gen. Laws ch. 176D are based on the amount of an underlying judgment, that amount does not include postjudgment interest. View "Anderson v. National Union Fire Insurance Co. of Pittsburgh Pa." on Justia Law
Moronta v. Nationstar Mortgage, LLC
Plaintiff brought this action against Nationstar Mortgage, LLC and Fremont Investment and Loan (collectively, Defendants) alleging that Defendants violated his rights under Mass. Gen. Laws ch. 93A. The Appeals Court reversed, concluding that there was a genuine issue of material fact as to Plaintiff’s chapter 93A claim. Nationstar appealed, arguing that Plaintiff’s claim was barred because he failed to serve a demand letter. The Supreme Judicial Court agreed with the Appeals Court, holding that, if a defendant keeps assets in the Commonwealth but does not maintain a place of business in the Commonwealth, the plaintiff need not serve a demand letter. View "Moronta v. Nationstar Mortgage, LLC" on Justia Law
Posted in: Consumer Law
Limoliner, Inc. v. Dattco, Inc.
Limoliner Inc., which owned and operated a fleet of luxury motor coaches, hired Dattco, Inc. to perform repair work on one of those vehicles. While Dattco recorded most of those requests in writing, Dattco neglected to write down Limoliner’s verbal request to repair one of the vehicle’s important electrical components. When Dattco failed to make any repairs to that component, Limoliner commenced this action, alleging, inter alia, that Dattco violated Mass. Gen. Laws ch. 93A, 2(a), as interpreted by 940 Code Mass. Regs. 5.05(2), by failing to record Limoliner’s request in writing. Dattco removed the case to federal court on the basis of diversity jurisdiction. Following a jury-waived trial, a magistrate judge found for Dattco on Limoliner’s regulatory claim under 940 Code Mass. Regs. 5.05, concluding that the provision at issue applies only to consumer transactions and not to transactions where the customer is another business. Limoliner appealed, and the United States Court of Appeals for the First Circuit certified a question regarding the issue to the Supreme Court. The Supreme Court answered that 940 Code Mass. Regs. 5.05 does apply to transactions in which the customer is a business entity. View "Limoliner, Inc. v. Dattco, Inc." on Justia Law
Reckis v. Johnson & Johnson
When Samantha Reckis was seven years old, she developed toxic epidermal necrolysis, a life-threatening skin disorder, after receiving multiple doses of Children’s Motrin, an over-the-counter medication with ibuprofen as its active ingredient. Plaintiffs, Samantha and her parents, sued the manufacturer and marketer of Children’s Motrin and its parent company, alleging that Samantha developed TEN as a result of being exposed to ibuprofen in the Children’s Motrin and that the warning label on the medication’s bottle rendered the product defective because it failed to warn consumers about the serious risk of developing a life-threatening disease from it. A jury found in favor of Plaintiffs and awarded Samantha a total of $50 million in compensatory damages and each of Samantha’s parents $6.5 million for loss of consortium. The Supreme Judicial Court affirmed, holding (1) Plaintiffs’ claim of failure to warn was not preempted by the Federal Food, Drug, and Cosmetic Act; (2) a pharmacologist who offered the causation evidence essential to Plaintiffs’ case was qualified to testify as to specific medical causation, and the testimony was reliable and admissible; and (3) the damages awarded to each of the plaintiffs were not grossly excessive or unsupported by the record. View "Reckis v. Johnson & Johnson" on Justia Law
Bellermann v. Fitchburg Gas & Elec. Light Co.
Plaintiffs, twelve residential and business customers of Defendant Fitchburg Gas and Electric Light Company who lost power during a major ice storm, filed suit on behalf of themselves and those similarly situated, asserting claims of gross negligence and violation of Mass. Gen. Laws ch. 93A. Plaintiffs moved to certify a class, and the parties filed cross-motions for partial summary judgment on Plaintiffs’ chapter 93A claims. In their motion for partial summary judgment, Plaintiffs sought issue preclusive effect of findings made by the Department of Public Utilities (DPU) in two previous administrative adjudications related to Defendant’s conduct during the storm. The superior court judge (1) denied Plaintiffs’ motion for class certification; and (2) primarily denied the motions for summary judgment after applying offensive issue preclusion to factual findings made by the DPU. The Supreme Judicial Court affirmed, holding that the judge did not abuse his discretion in declining to certify a class and in applying issue preclusion to facts found after evidentiary hearings at the DPU. View "Bellermann v. Fitchburg Gas & Elec. Light Co." on Justia Law
Ferreira v. Chrysler Group LLC
Plaintiff purchased a new vehicle from Dealer that was subject to Manufacturer’s limited warranty. Plaintiff later filed a complaint against Manufacturer and Dealer (together, Defendants), alleging that the vehicle was defective and that Defendants failed to repair or remedy the defects under the warranty. Dealer demanded that Manufacturer reimburse Dealer for the attorney’s fees it incurred in defending against Plaintiff’s claims and indemnification for and liability incurred. Plaintiffs claims against Defendants were disposed of through summary judgment and voluntary dismissal. The judge also found that Dealer was not entitled to indemnificationt. The Supreme Judicial Court affirmed, holding that because Plaintiff’s allegations alleged the fault or negligence of both Manufacturer and Dealer, Manufacturer did not have a duty to defend under Mass. Gen. Laws ch. 93B, 8(a).View "Ferreira v. Chrysler Group LLC" on Justia Law
May v. Suntrust Mortgage, Inc.
Plaintiffs refinanced their home in a mortgage loan transaction with Summit Mortgage. The mortgage was later assigned to Defendant, SunTrust Mortgage, Inc. Facing foreclosure, Plaintiffs filed for Chapter 13 bankruptcy. Plaintiffs filed an adversary proceeding against SunTrust in the pending bankruptcy case, seeking rescission of the loan transaction and damages. SunTrust filed a motion for summary judgment, arguing that because Plaintiffs filed their adversary complaint more than four years after the mortgage loan transaction, the defensive rescission-by-way-of-recoupment claim was barred by section 10(f) of the Massachusetts Consumer Credit Cost Disclosure Act (“MCCCDA”). In response, Plaintiffs asserted that the four-year statute of limitations did apply to their action because section 10(i)(3) of the MCCCDA allows for recoupment claims at any time. The United States Bankruptcy Court for the District of Massachusetts certified a question of law to the Massachusetts Supreme Judicial Court, which answered by holding that a borrower who grants a mortgage in a consumer credit transaction may not rescind the transaction under the MCCCDA defensively by way of common law recoupment after the expiration of the statute of limitations set forth in section 10(f) of the MCCCDA.View "May v. Suntrust Mortgage, Inc." on Justia Law
Olmstead v. Dep’t of Telecommunications & Cable
Plaintiff filed a consumer telephone service complaint against Verizon New England. The Department of Telecommunications and Cable eventually dismissed Plaintiff's claim as moot because, during the course of the proceedings, Plaintiff's customer relationship with Verizon had been terminated. On appeal, a single justice dismissed Plaintiff's complaint because it failed to comply with the timely filing requirements of Mass. Gen. Laws ch. 25, 5. Plaintiff appealed to the full court. The Department subsequently afforded Plaintiff a renewed opportunity to pursue a timely appeal under Mass. Gen. Laws ch. 25, 5, and Plaintiff chose to do so. The Supreme Court (1) affirmed the ruling of the single justice that Mass. Gen. Laws ch. 25, 5 governs appeals from final orders issued by the Department; and (2) declared the remainder of the matter moot because Plaintiff filed a new petition for judicial review within the time period required by Mass. Gen. Laws ch. 25, 5. Remanded. View "Olmstead v. Dep't of Telecommunications & Cable" on Justia Law
McInnes v. LPL Fin., LLC
Karl McGhee, a financial advisor at LPL Financial, acted as financial planner for Plaintiff. Plaintiff filed a complaint against McGhee and LPL, asserting claims for, inter alia, violations of Mass. Gen. Laws ch. 93A. Defendants moved for an order compelling the parties to proceed to arbitration due to an arbitration agreement signed by Plaintiff. The motion judge denied the motion, concluding that none of Plaintiff's claims could be compelled to arbitration because claimants under chapter 93A, section 9 are not required to submit to arbitration. The Supreme Court reversed, holding (1) claims alleging an unfair or deceptive trade practice in violation of chapter 93A, section 9 must be referred to arbitration where the contract involves interstate commerce and the agreement is enforceable under the Federal Arbitration Act (FAA); and (2) because Plaintiff and Defendants in this case entered into a valid contract whereby they agreed to settle all controversies related to Plaintiff's financial account by arbitration, and because the arbitration agreement was governed by the FAA, Defendants as a matter of law were entitled under the FAA to a stay of judicial proceedings and an order compelling arbitration. Remanded. View "McInnes v. LPL Fin., LLC" on Justia Law
Drakopoulos v. U.S. Bank Nat’l Ass’n
Plaintiffs refinanced their home through Lender. The monthly payment on the loan was $600 greater than Plaintiffs' total monthly income. After the mortgage was funded, it was sold and assigned to Bank. Servicer serviced the loan. After Plaintiffs defaulted on the loan, Bank foreclosed on the mortgage. Plaintiffs subsequently brought this action asserting violations of the Consumer Protection Act, the Predatory Home Loan Practices Act, and the Borrower's Interest Act, and asserting that the loan was unenforceable because it was unconscionable. A superior court judge granted summary judgment to Defendants, Bank and Servicer, on all claims based on the ground that Defendants, as assignees, had no liability for the acts of Lender. The Supreme Court (1) reversed summary judgment in favor of Bank, holding that Bank was not shielded from liability as a matter of law by virtue of its status as an assignee and that Bank failed to establish the absence of material issues of disputed fact entitling it to judgment on any individual claim; and (2) affirmed summary judgment in favor of Servicer because Servicer was not shown to be an assignee and Plaintiffs offered no alternative basis on which Servicer might be held liable. Remanded. View "Drakopoulos v. U.S. Bank Nat'l Ass'n" on Justia Law