Alphas Co. v. Kilduff
Alphas Co. v. Kilduff
Opinion of the Court
In this appeal, we consider the factors that entitle a party opposing summary judgment to a continuance for discovery. The plaintiff, The Alphas Company, Inc. (Alphas), appeals from the entry of summary judgment in favor of the defendants, Thomas Kiiduff and Tom Lange Company, Inc. (Lange), on Alphas’s claim for breach of contract and various tort and statutory claims stemming from Alphas’s purchase of fruit from Lange. Alphas complains that the Superior Court judge abused his discretion in denying Alphas’s request to conduct discovery, pursuant to Mass.R.Civ.P. 56(f), 365 Mass. 825 (1974), prior to ruling on the defendants’ summary judgment motions. Lange cross-appeals from summary judgment in Alphas’s favor on Lange’s counterclaim for abuse of process. We determine that Alphas should have been permitted discovery in connection with its breach of contract and related claims. In all other respects, we affirm the judgments.
Background. We summarize the facts from the summary judgment record. In May, 2001, Alphas purchased a fruit distribution company, Boston Citrus, Inc. (Boston Citrus), from Steven Abbate. Abbate became an Alphas employee, along with another former Boston Citrus employee, Joseph Sevelitte. Prior to the purchase, Lange had supplied most of Boston Citrus’ s fruit, and Boston Citrus was indebted to Lange for a considerable sum. By the time Alphas purchased Boston Citrus, Lange had taken over control and management of Boston Citrus, under the supervision of the defendant Thomas Kiiduff, Lange’s vice president of sales for its Boston office. Alphas continued to purchase most of its fruit from Lange.
In 2002, Alphas came to believe that Abbate and Sevelitte were stealing inventory. Alphas filed complaints against both.
In November, 2003, Alphas filed the complaint in the instant case against Lange and Kilduff. Alphas asserted counts against Lange for breach of contract and breach of the implied covenant of good faith and fair dealing. Against both Kilduff and Lange, Alphas asserted counts for deceit, civil conspiracy, interference with business relations, conversion, and violations of G. L. c. 93A, and the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. §§ 1341 & 1346 (2000). Along with the complaint, Alphas served Lange with a request for production of documents. Lange moved for a protective order with regard to certain categories of the document request, and filed an answer and counterclaim for abuse of process and violation of G. L. c. 93A.
The Superior Court docket omits mention of several subsequent filings and their disposition that are critical to this appeal. The parties have stipulated to the existence and content of certain orders entered orally by the judge that were not entered on the Superior Court docket. Among other things, the parties have stipulated that on February 11, 2004, at a hearing on Lange’s motion for a protective order, a Superior Court judge ordered all discovery barred, except for the deposition of Alphas by the defendants.
Kilduff and Lange filed motions for summary judgment on or about June 3, 2004, though Lange’s motion was not recorded on the Superior Court docket. Alphas opposed the motions and sought additional discovery pursuant to Mass.R.Civ.R 56(f).
Without ruling on Lange’s motion for a protective order, the judge allowed summary judgment in favor of Lange and Kilduff on all counts, with the notation that
“[ujpon examination of the Summary Judgment record, after argument of counsel, there is no basis upon which a reasonable trier of fact could find for the plaintiff. Mere allegations of ‘kickbacks’ in unrelated transactions do not rise to the requisite standard of proof at summary judgment that genuine and material issues of fact exist in the controversy.”
The case proceeded on Lange’s counterclaim for abuse of process and violation of G. L. c. 93A. The parties at that point were permitted discovery. On cross motions for summary judgment, the judge issued a memorandum of decision, ruling in Alphas’s favor.
Alphas filed this appeal from the entry of summary judgment for Kilduff and Lange. Lange filed an appeal from the entry of summary judgment for Alphas on the counterclaim.
Discussion. The principal issue before us is whether the Superior Court judge abused his discretion in granting summary judgment to the defendants without first allowing Alphas to conduct the discovery it requested. See generally Commonwealth v. Fall River Motor Sales, Inc., 409 Mass. 302, 307 (1991) (refusal to grant a continuance under rule 56(f) is “set aside only upon a clear showing of an abuse of discretion”). “A continuance is appropriate if the party opposing a summary judgment motion shows that it cannot, without further discovery, ‘present by affidavits facts essential to justify [its] opposition.’ ” Ibid., quoting from Mass.R.Civ.P. 56(f). In order to avoid the
Turning to Alphas’s affidavit and related submissions, we assume the facts set out in the nonmoving party’s summary judgment materials are true, and we make all logically permissible inferences in its favor. See Willitts v. Roman Catholic Archbishop of Boston, 411 Mass. 202, 203 (1991); Zhang v. Massachusetts Inst. of Technology, 46 Mass. App. Ct. 597, 598 (1999). See also Community Natl. Bank v. Dawes, 369 Mass. 550, 553-556 (1976). We consider Alphas’s request for relief under rule 56(f) in the context of the facts Alphas must prove to make out its claims.
1. Breach of contract. Alphas claimed that it entered into an oral contract with Lange to purchase produce at twenty-five cents per package over cost. The allegation was supported by the deposition testimony of John Alphas, wherein he reported that Kilduff, Lange’s vice president of sales for its Boston office, told him on several occasions that Kilduff would sell produce to Alphas at Lange’s cost plus twenty-five cents per package. The existence of an oral contract and its terms was further supported by the deposition testimony of Abbate, the former Alphas employee, which was taken in the lawsuit brought against him by Alphas.
Alphas’s summary judgment materials thus satisfied its burden, under Mass.R.Civ.P. 56(f), of making a threshold showing that there was a factual basis to its claim that an oral contract existed between the parties.
In seeking a continuance under rule 56(f), Alphas sought discovery of evidence showing, among other things, information pertaining to Lange’s costs in connection with produce it sold to Alphas, as well as Lange’s invoices to Alphas. In response to Alphas’s request, the judge permitted discovery only of Lange’s invoices to Alphas. Lange responded to Alphas’s interrogatory seeking all such invoices with a motion for a protective order, and produced only a computer-generated report of information contained in its invoices to Alphas. The judge, without ruling on the protective order, allowed the summary judgment motions of both defendants.
Cases addressing rule 56(f) have identified various requirements for obtaining relief. “One common reason for the denial of a continuance in this context is the irrelevance of further discovery to the issue being adjudicated in summary judgment.” Commonwealth v. Fall River Motor Sales, Inc., 409 Mass at 308. To withstand a summary judgment motion, the nonmoving party accordingly must show that “the information sought would have raised a material factual question.” Blake Bros. Corp. v. Roche, 12 Mass. App. Ct. 556, 560 (1981). The nonmoving party also “must show to the best of his ability what facts are within the movant’s exclusive knowledge or control; what steps have been taken to obtain the desired information pursuant to
Particularly helpful in the application of those factors is the analytical framework set out in Resolution Trust Corp. v. North Bridge Assocs., 22 F.3d 1198, 1203-1208 (1st Cir. 1994), in its consideration of Fed.R.Civ.P. 56(f). We note that the Massachusetts Rules of Civil Procedure were patterned on the Federal Rules of Civil Procedure, and the wording of our rule 56(f) is identical to its Federal counterpart; it is well established that we may accordingly take guidance from the relevant Federal jurisprudence in construing the rule. See Van Christo Advertising, Inc. v. M/A-COM/LCS, 426 Mass. 410, 414 (1998), quoting from Rollins Envtl. Servs., Inc. v. Superior Court, 368 Mass. 174, 179-180 (1975) (“In construing our rules, we follow the construction given to the Federal rules ‘absent compelling reasons to the contrary or significant differences in content’ ”); Commissioner of Rev. v. Corrigan, 45 Mass. App. Ct. 309, 311 (1998). In Resolution Trust Corp. v. North Bridge Assocs., supra at 1203, issued after the Supreme Judicial Court’s decision in Commonwealth v. Fall River Motor Sales, Inc., supra, the United States Court of Appeals for the First Circuit encapsulated the rule 56(f) considerations into five criteria: “authoritativeness, timeliness, good cause, utility, and materiality.” As explained by the Court of Appeals, the request for relief under rule 56(f), after meeting the preliminary requirements that the request be timely and that it be accompanied by an authoritative affidavit based on firsthand knowledge, “should show good cause for the failure to have discovered the facts sooner; it should set forth a plausible basis for believing that specified facts, susceptible of collection within a reasonable time frame, probably exist; and it should indicate how the emergent facts, if adduced, will influence the outcome of the pending summary judgment motion.” Resolution Trust Corp. v. North Bridge Assocs., supra. See
Applying the rule 56(f) paradigm here, the presumption strongly favors Alphas. To begin, the record shows that Alphas made a timely request for relief under rule 56(f), that the supporting affidavit of Peter Alphas was made on firsthand knowledge of the obstacles to conducting discovery, and that good cause existed for Alphas’s inability to complete discovery before the entry of summary judgment.
Alphas additionally satisfied the more substantive requirement of materiality. “[T]he threshold of materiality at this stage of [the] case is necessarily low.” Resolution Trust Corp. v. North
Based on its summary judgment submissions, Alphas has demonstrated the materiality of its discovery requests related to the alleged oral agreement between Lange and Alphas and Lange’s costs and expenses in connection with the produce Lange purchased from its own suppliers and shipped to Alphas. Discovery necessary to prove Alphas’s claim conceivably would extend to the deposition testimony of Lange, Kilduff, and Abbate
In sum, Alphas has made a clear showing that, as to its breach of contract claim against Lange, it satisfied all five conditions set out in Resolution Trust Corp. v. North Bridge Assocs., supra at 1203, for obtaining relief under rule 56(f), and the defendants have made no countervailing showing to overcome the resulting presumption for relief. See Simas v. First Citizens’ Fed. Credit Union, 170 F.3d at 46. In these circumstances, moreover, we see no justification for restricting Alphas’s discovery to the invoices between Lange and Alphas, and further, in entering summary judgment for Lange on the breach of contract and related counts. Summary judgment on the claims against Lange arising from breach of the alleged oral agreement, specifically count XI (breach of contract), count XE (breach of the implied covenant of good faith and fair dealing), and count XEI (violations of G. L. c. 93A, to the extent the allegations involve overcharging for fruit pursuant to the contract) of Alphas’s complaint should not have entered for Lange.
The summary judgment materials supporting those claims established, at most, that Abbate and Sevelitte, not parties to this action, stole fruit from Alphas while in its employ. Beyond that, the record reflects only hints of other improprieties, as for example, suspicions that Abbate made cash payments to Kilduff at Boston Citrus before Alphas purchased the company, and even more remote suspicions that those payments continued after Alphas purchased the company.
On our review of the summary judgment record, we conclude that the factual underpinnings of the tort and statutory claims against Lange and Kilduff were far too speculative to meet even the minimal threshold to warrant further discovery under rule 56(f). “Parties may not ‘fish’ for evidence on which to base their complaint ‘in hopes of somehow finding something helpful to their case in the course of the discovery procedure.’ ” E.A. Miller, Inc. v. South Shore Bank, 405 Mass, at 102, quoting from Charbonnier v. Amico, 367 Mass. 146, 153 (1975). We address the issue no further, for the additional reason that Alphas’s brief on those several claims and the information sought under rule 56(f), does not satisfy Mass.R.A.P. 16(a)(4), as amended, 367 Mass. 921 (1975).
Accordingly, summary judgment in favor of Kilduff on all counts, and against Lange on the counts not directly related to Lange’s alleged breach of contract, see our discussion in part 1, supra, are affirmed.
3. Cross-appeal for abuse of process and G. L. c. 93A. Lange brought a counterclaim against Alphas for abuse of process and violation of G. L. c. 93A, in connection with Alphas’s pursuit of
Summary judgment was properly entered for Alphas. The record confirms that Alphas’s complaint against Abbate had the legitimate aim of recovering for Abbate’s theft of inventory; indeed, that was the outcome, as Abbate paid Alphas to settle the claim. See Jones v. Brockton Public Mkts., Inc., 369 Mass. 387, 390-391 (1975). See also Quaranto v. Silverman, 345 Mass. 423, 426 (1963), quoting from Gabriel v. Borowy, 324 Mass. 231, 236 (1949) (process must be used “to accomplish some ulterior purpose for which it was not designed or intended, or which was not the legitimate purpose of the particular process employed”). Lange has not persuaded us that the fact that discovery in the Abbate litigation may have unearthed information that prompted Alphas to institute this action against Lange rendered Alphas’s discovery improper.
We also note that, traditionally, discovery activities have not provided grounds for abuse of process actions in Massachusetts. Cases recognizing abuse of process claims have been limited to three types of process: writs of attachment, the process used to institute a civil action, and the process related to bringing criminal charges. Jones v. Brockton Public Mkts., Inc., 369 Mass, at 389-390. See, e.g., Gutierrez v. Massachusetts Bay Transp. Authy., 437 Mass, at 408-409 (claim that criminal complaints were brought pursuant to falsified arrest reports); Kelley v. Stop & Shop Cos., 26 Mass. App. Ct. 557, 558 (1988) (criminal complaint allegedly brought to coerce payment). See also Adams v. Whitman, 62 Mass. App. Ct. at 855-856 (instituting civil suit), and cases cited.
We see no reason to extend a cause of action for abuse of process to the discovery practices complained of here. As a matter
Lange further maintains that the judge’s failure to address Lange’s G. L. c. 93A claim in his memorandum of decision requires remand of the matter to the Superior Court. However, Lange itself barely touched on c. 93A in either its motion papers for summary judgment or in its opposition to Alphas’s motion for summary judgment on the counterclaim. Moreover, the judge’s ruling that the Abbate litigation was brought to redress a legitimate wrong and reflected no misuse of discovery adequately disposed of Lange’s c. 93A claim as well. On appeal, Lange does little more than cite to Fafard Real Estate & Dev. Corp. v. Metro-Boston Bdcst., Inc., 345 F. Supp. 2d 147, 154 (D. Mass. 2004), for the proposition that “[t]he misuse of legal process to obtain a commercial advantage has long been recognized as a violation of Chapter 93A.” Yet its summary judgment motion and supporting materials failed to connect the alleged wrongdoing, that is, procuring documents from Lange’s suppliers and deposing Lange employees, with the allegation of harm that Alphas thereby obtained an unwarranted glimpse into Lange’s business operations. Lange’s vague assertions of damages under c. 93A did not rise to the level of specific facts required to defeat summary judgment. See Mass. R.Civ.P. 56(e), 365 Mass. 824 (1974).
Conclusion. Based on the foregoing, the judge’s order limiting relief under Mass.R.Civ.R 56(f) is reversed, the judgment for Lange on the count XI (breach of contract), count XII (breach of the implied covenant of good faith and fair dealing), and count XIII (violations of G. L. c. 93A, to the extent the allegations involved overcharging for fruit pursuant to the contract) is vacated, and the case is remanded to the Superior Court for further proceedings consistent with this opinion. The judgments are affirmed in all other respects.
So ordered.
See Alphas Company, Inc. vs. Abbate, Suffolk Superior Court, No. 2002-2576 (May 14, 2004); Alphas Company, Inc. vs. Sevelitte, Suffolk Superior Court, No. 2002-1327 (May 14, 2004).
Rule 56(f) of the Massachusetts Rules of Civil Procedure provides: “Should it appear from the affidavits of a party opposing the motion [for summary judgment] that he cannot for reasons stated present by affidavit facts essential to justify his opposition, the court may refuse the application for judgment or may
Lange’s objection to Abbate’s testimony on hearsay grounds is unavailing. As we note below, latitude is afforded in the admissibility of hearsay in rule 56(f) motions, since the very basis of the motion is that discovery was unavailable.
Lange devotes much of its brief on appeal to a defense under the Massachusetts Uniform Commercial Code, G. L. c. 106, an argument not raised in the Superior Court and therefore not properly before us. See Federal Fin. Co.
We are in agreement with the observation of the First Circuit that “Rule 56(f) is designed to minister to the vigilant, not to those who slumber upon perceptible rights.” Resolution Trust Corp. v. North Bridge Assocs., 22 F.3d at 1203. “[U]se of the rule not only requires meeting several benchmarks . . . but also requires due diligence both in pursuing discovery before the summary judgment initiative surfaces and in pursuing an extension of time thereafter.” Ibid.
Regarding good cause, we note that the original stay entered by the judge went well beyond the relief requested in Lange’s protective order and afforded essentially no discovery to Alphas. Alphas’s deposition by the defendants was the sole discovery the judge permitted. This was followed by the very restrictive discovery allowed in response to its rule 56(f) motion, which was similarly met with Lange’s motion for a protective order.
See note 11, infra.
Contrary to Kilduff s suggestion, the fact that some of the individuals involved in this lawsuit were already deposed in the Abbate litigation does not negate Alphas’s need for discovery for summary judgment purposes. While their previous testimony could be used to support Alphas’s rule 56(f) motion, Kilduff fails to indicate how such testimony, from a different action involving different parties and claims, would be admissible evidence in opposing summary judgment in this case. Compare Lentz v. Metropolitan Property & Cas. Ins. Co., 437 Mass. 23, 30 n.2 (2002).
“Though we do not attempt to resolve specific discovery requests and objections here, relevant documents would appear to include number 9, 10, 13-15, 17, 33, and 34 of “Plaintiff’s First Request for Production of Documents to Defendant Tom Lange Company, Inc.”
“Lange’s original motion for a protective order objected to several document requests on the basis that no such documents existed, but did not so indicate with respect to documents concerning Lange’s purchase and shipment of produce to Alphas. The record on appeal does not permit confirmation of Lange’s suggestion at oral argument that information concerning Lange’s costs was a matter of public record.
See note 5, supra.
Reference
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- The Alphas Company, Inc. v. Thomas Kilduff & another
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