Alphagary Corp. v. Gitto

22 Mass. L. Rptr. 489
CourtMassachusetts Superior Court
DecidedMay 21, 2007
DocketNo. 20030384A
StatusPublished

This text of 22 Mass. L. Rptr. 489 (Alphagary Corp. v. Gitto) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alphagary Corp. v. Gitto, 22 Mass. L. Rptr. 489 (Mass. Ct. App. 2007).

Opinion

Agnes, Peter W., J.

The plaintiff, AlphaGary Corporation (“AlphaGary”), brings this action against Gregory C. Gitto (“Gitto”), Edwina Gitto (“Mrs. Gitto”), Samuel Gitto, and Newline, Inc. (“Newline”) alleging breach of contract, breach of non-compete provision of settlement agreement, violation of trade secret statutes and violation of Chapter 93A. Newline counterclaimed against the plaintiff and brought claims against third-party defendants, Robert N. Gingue (“Gingue”), Robert S. Cox (“Cox”), and Philip A. Bourgeois (“Bourgeois”), alleging civil conspiracy, violation of G.L.c. 93, §§4, 6, 10, and 12, violation of G.L.c. 93A, §§2 and 11, violation of G.L.c. 12, §111, abuse of process, malicious prosecution, and trespass. This matter is before the court on AlphaGary, Gingue, and Cox’s motion for partial summary judgment and Mrs. Gitto’s cross motion for summary judgment. For the reasons stated below, AlphaGary, Gingue and Cox’s motion is ALLOWED and Mrs. Gitto’s motion is DENIED.

BACKGROUND

Gitto is a former employee of AlphaGary Corporation. After his employment with AlphaGary ended in 1992, he started Newline Color, Inc. in which his parents, Samuel and Edwina Gitto, own stock. Mrs. Gitto, although an owner, does not participate in the management or daily operations of Newline. In 1997, AlphaGary brought suit against Newline in Suffolk Superior Court, alleging improper competition and misappropriation of trade secrets. In July 1999, this litigation ended in a settlement agreement. In that agreement, Newline, Gitto and his parents agreed that they would not “directly or indirectly (or through any entity or organization owned or partially owned directly or indirectly by, or otherwise related to any one of them)” engage in specified business activities.

In 2000, AlphaGary received word from Bourgeois, a former Newline employee, that Newline was violating the settlement agreement. Newline states that AlphaGary should have been skeptical of these accusations, because AlphaGary knew that Bourgeois was an admitted perjurer. AlphaGary relayed Bourgeois’ information to the Worcester County District Attorney’s Office, and the state police obtained a search warrant for the premises of Newline. Newline claims that, at AlphaGary’s request, some of AlphaGary’s employees were present during the search; Newline also alleges that the police did not follow proper procedure for procuring this civilian presence. During the search, the police discovered incriminating evidence against Newline. The parties are in dispute about whether the particular items found were in fact the items mentioned by Bourgeois. Charges were brought against Gitto and Newline. Newline pled guilty to “stealing, storage, and misappropriating” trade secrets. The charges against Gitto were dropped.

In 2003, AlphaGary commenced this litigation seeking damages for Newline’s alleged violation of the 1999 settlement agreement. Newline then counterclaimed against the AlphaGary and brought claims [490]*490against Gingue and Cox — two AlphaGary executives— and Bourgeois, alleging that these parties acted in bad faith, in pursuing criminal charges against Newline. Newline claims that AlphaGary and its executives harbor a deep dislike of Gitto and his parents, and are intent on destroying Newline.

DISCUSSION

I. Summary Judgment Standard

Summary judgment shall be granted where there are no genuine issues as to any material fact and where the moving party is entitled to judgment as a matter of law. Mass.R.Civ.P. 56(c); Cassesso v. Comm’r of Corr., 390 Mass. 419, 422 (1983); Cmty. Nat’l Bank v. Dawes, 369 Mass. 550, 553 (1976). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue and that the summaiy judgment record entitles the moving party to judgment. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). “A court must deny a motion for summaiy judgment if, viewing the evidence in the light most favorable to the nonmoving party, there exist genuine issues of material fact.” Locator Services Group v. Treasurer and Receiver Gen., 443 Mass. 837, 846 (2005).

II. AlphaGary, Gingue, and Cox’s Motion on Newline’s Counterclaims

A. Malicious Prosecution

Newline’s claim for malicious prosecution is missing an essential element. To be successful on this cause of action, a plaintiff must demonstrate “that he was damaged because the defendant commenced the original action without probable cause and with malice, and that the original action terminated in his favor.” Chervin v. Travelers Ins. Co., 448 Mass. 95, 103 (2006). Accordingly, if the plaintiff was not successful in the underlying litigation, then he may not proceed with this claim. See Seelig v. Harvard Cooperative Society, 1 Mass.App.Ct. 341, 346 (1973) (“the compromise of a dispute” bars a claim for malicious prosecution); Bannon v. Auger, 262 Mass. 427, 435-36 (1928). Here, the initial or underlying case is the criminal proceeding which did not end in Newline’s favor; it resulted in a guilty plea. As such this cause of action fails as a matter of law.

In addition, Newline has failed to demonstrate that the police lacked a basis for the search warrant which led to the seizure of evidence and the criminal charges. The existence of probable cause in the criminal proceeding is a further reason why the civil claim for malicious prosecution fails.

B.Abuse of Process

AlphaGaiy is entitled to summaiy judgment on Newline’s claim for abuse of process. A successful prosecution of this claim requires that the plaintiff show that “(1) process was used; (2) for an ulterior or illegitimate purpose; (3) resulting in damage.” Adams v. Whitman, 62 Mass.App.Ct. 850, 853 (2005) (citations omitted). The defendant’s “ulterior motive is more than the intent to harass; there must be intention to use process for coercion or harassment to obtain something not properly part of the suit.” Broadway Management Services Ltd. v. Culllinet Software, Inc., 652 F.Sup. 1501, 1503 (D.Mass. 1987). “There is no liability where the defendant has done nothing more than carry out the process to its authorized conclusion, even though with bad intentions.” Antelman v. Lewis, 480 F.Sup. 180, 186 (D.Mass. 1979).

Here, AlphaGary and its executives turned over information to law enforcement personnel, which led to a search warrant and the discovery of incriminating information. There is no evidence that they obtained any pecuniary benefit apart from the retrieving of the property at issue in the criminal prosecution. Regardless of Newline’s contention that AlphaGary is set on destroying it, Newline has failed to state the specific economic advantage, outside of the litigation, that AlphaGary was seeking to gain. Consequently, its counterclaim for abuse of process must fail.

C. Violation of G.L.c. 93, §§4, 6, 10, and 12

Two sections of this statute simply are inappropriate to this dispute. General Laws c. 93, §6 is not applicable, as the parties did not enter into a contract “for sale of goods, wares, merchandise, supplies or other commodities.” The conduct at issue is the AlphaGary’s pursuit of criminal complaints against Newline, not a contract of any kind. In addition, G.L.c. 93, §10 is not relevant as it does not confer a private right of action.

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Bluebook (online)
22 Mass. L. Rptr. 489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alphagary-corp-v-gitto-masssuperct-2007.