BLS Blog

In Crotty v. Continuum Energy Technologies, Judge Salinger granted Thomas Crotty’s special motion to dismiss counterclaims for tortious interference brought by Continuum Energy Technologies (CET) and John Preston under the Massachusetts anti-SLAPP statute.   

This is the latest litigation chapter in "the unravelling of a lengthy business relationship" between CET’s co-founders, John Preston and Christopher Nagel, after Nagel resigned in 2014 to form a competing business, IDL Development, Inc. (IDL). Preston and CET brought claims against Nagel and IDL alleging that Nagel had utilized and exploited CET’s proprietary information without a license. In March 2018, the parties entered into settlement and licensing agreements, under which CET licensed certain intellectual property to IDL. Crotty had participated in these settlement negotiations on behalf of IDL as its lead investor. IDL subsequently defaulted on its payment obligations and declared bankruptcy. 

In Steward Health Care System v. CHSPSC, Judge Sanders found that CHSPSC, an affiliate of Community Health Systems (CHS), is subject to personal jurisdiction in Massachusetts for claims made under transition-services agreement (TSAs) signed along with an asset-purchase agreement (APA).

Under the APA between Steward Health Care System LLC (Steward) and CHSPSC, Steward agreed to purchase eight hospitals outside Massachusetts. Under the TSAs between the same parties, CHSPSC agreed to provide services to facilitate the transition of the hospitals.

In Renova Partners v. Michael Singer and Greenlight Development Partners, Judge Sanders granted Greenlight’s motion to dismiss for lack of personal jurisdiction because, among other things, Greenlight was “not even in existence” when the allegedly tortious acts occurred.

Judge Davis’s recent denial of an anti-SLAPP motion to dismiss provides helpful guidance on how to distinguish between counterclaims used as solely as a “cudgel” and meritorious claims in breach of contract cases. The ruling also underscores the importance of drafting clear release language in a settlement agreement.

It’s been a busy year at the BLS Blog. As we wrap up 2018, take a look at our top five most well-read posts:

• America’s Test Kitchen Faces Abuse of Process Claim: Judge Salinger denied
  America’s Test Kitchen’s motion to dismiss an abuse-of-process claim asserted by William Thorndike, Jr. According to Thorndike, America’s Test Kitchen brought a baseless lawsuit to hinder Christopher Kimball’s efforts, supported by Thorndike, to compete against America’s Test Kitchen. That assertion, according to Judge Salinger, was sufficient to state an abuse-of-process claim.

In a case concerning allegedly unfair student loan collection practices, Judge Salinger concluded that a Pennsylvania public corporation, the Pennsylvania Higher Education Assistance Agency (PHEAA), is a “person” potentially subject to Chapter 93A liability.

A business plaintiff’s assertion of a Chapter 93A claim could boomerang where the plaintiff moves to dismiss a Chapter 93A counterclaim. That’s a key takeaway from Judge Kaplan’s decision in Microsemi Corp. v. Langlois.

In a dispute between a former employee and former employer over violation of a non-compete/non-disclosure agreement and other related claims, Judge Salinger denied the employee’s motion to dismiss under Massachusetts’ anti-SLAPP statute, G.L. c. 231, § 59H, finding that none of the employer’s claims were based solely on the employee’s petitioning activity.

Judge Salinger granted summary judgment in favor of a defendant that violated Massachusetts debt collection law where a plaintiff failed to show an injury “separate” and “distinct” from the regulatory violation.

America’s Test Kitchen (ATK) commenced suit against Christopher Kimball, who used to work for ATK. The lawsuit arises from Kimball’s development of a competing business. ATK also sued William Thorndike, Jr. According to ATK, Thorndike misappropriated confidential information and aided and abetted Kimball’s breach of fiduciary duty.