Auburn Medical Investors Ltd. Partnership v. Audette

14 Mass. L. Rptr. 706
CourtMassachusetts Superior Court
DecidedJune 18, 2002
DocketNo. 0200133C
StatusPublished

This text of 14 Mass. L. Rptr. 706 (Auburn Medical Investors Ltd. Partnership v. Audette) 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
Auburn Medical Investors Ltd. Partnership v. Audette, 14 Mass. L. Rptr. 706 (Mass. Ct. App. 2002).

Opinion

Murphy, J.

The plaintiff, Auburn Medical Investors, Limited Partnership d/b/a Life Care Center of Auburn (“LCC”), brought this action against the defendants: Lillian Audette (“Audette”), individually, for breach of contract and quantum meruit (Counts I and II);2 William F. Scannell, Jr. (“Scannell”), as Attorney for Audette, for breach of contract and negligence (Counts III and IV); and Roland DuBrule (“DuBrule”), son of Audette, as the transferee of allegedly fraudulently conveyed property (Count V).

Scannell and DuBrule now move to dismiss LCC’s complaint under G.L.c. 231, §59H, asserting that the actions complained of occurred during the exercise of defendants’ right to petition under either or both of the Constitutions of the United States or the Commonwealth of Massachusetts.

Scannell further argues that LCC’s claims are barred because, as an attorney, he is immune from liability to his adversary for actions taken in furtherance of the representation of his clients. DuBrule argues that LCC’s claims that Audette fraudulently conveyed property to DuBrule are without merit because at the time of the conveyance defendants had no intent to defraud LCC. LCC responds that Scannell and DuBrule’s actions do not fall under the protections of Section 59H because the claims are not based on defendants’ exercise of Audette’s right to petition. For the reasons detailed below, defendants’ Motion to Dismiss is ALLOWED in part and DENIED in part.

BACKGROUND

This case involves a dispute between LCC and the defendants over payments due to LCC for nursing home services rendered to Audette. Audette signed an Admission Agreement in which she agreed to pay for nursing home care at LCC of Auburn. She was admitted for long term rehabilitation to LCC on May 5, 2000, with private health insurance coverage which paid for her care through May 26, 2000. On May 27, 2000, she became a private pay patient.

Audette filed an application for Medicaid benefits on or about August 1, 2000. LCC retained Medi Services, Inc. to assist Audette in the filing and processing of the application. That application was denied on October 2, 2000. On October 4, 2000, LCC made demand for payment from Audette in the sum of $34,318.07. On November 6, 2000, LCC advised Audette that LCC intended to discharge her for nonpayment.

Audette retained the services of an attorney, Scannell, to represent her with regard to various concerns and controversies involving LCC and to help [707]*707her in her quest to obtain Medicaid benefits. On February 27, 2001, having received no payment from Audette or on her behalf since her insurance expired on May 26,2000, LCC issued her a notice of discharge. In April 2001, a second Medicaid application was completed by LCC, with assistance from Scannell. That application was denied on June 8, 2001, because Audette’s assets exceeded the program limits by a sum slightly in excess of $3000.

On July 10, 2001, LCC issued a second notice of discharge for nonpayment. On July 12, 2001, Audette, through Scannell, appealed the second notice to discharge to the Division of Medical Assistance for an administrative hearing. Pursuant to applicable Regulations of the Division, the appeal effectively prevented LCC from discharging Audette until after a hearing could be held.

Following the hearing, the hearing officer provided Scannell with information and steps to appeal the denial of the second Medicaid application. The Court assumes, arguendo, that if Scanell had diligently pursued these steps, the result would have been that Audette would have qualified for Medicaid benefits retroactively as of January 1, 2001. On October 2, 2001, at the continued hearing, Scannell failed to file an appeal of the denial of the second Medicaid application, as instructed by the hearing officer. In addition he failed to present evidence showing that Audette’s son, DuBrule, had filed such an appeal.

Although Audette lost her administrative appeal, Scannell effectively prevented LCC from discharging Audette until Audette was able to obtain Medicaid benefits on her third attempt, which provided Medicaid benefits retroactive to August 1, 2001. Scannell’s “negligent” filing of the application resulted in seven months of private pay which otherwise would have been covered by Medicaid payments. As of March 31, 2002, Audette, still a resident of LCC, had an outstanding balance of $128,073.57. LCC filed the instant Complaint against defendants on February 21, 2002, for nonpayment.

DISCUSSION

Scannell and DuBrule have joined forces to move to dismiss the Complaint under G.L.c. 231, §59H. They assert that the actions complained of occurred solely during the exercise of Audette’s right to petition for an appeal to the Division of Medical Assistance. LCC contends their claims against Scannell and DuBrule are not based, in whole or in part, on the right of Audette to petition.

A. General Laws c. 231, §59H

Commonly known as the anti-SLAPP (“strategic litigation against public participation”) statute, G.L.c. 231, §59H was enacted to frustrate lawsuits that appeared to be designed to chill citizens’ lawful exercise of their right to petition the government for redress of grievances. See generally Duracraft Corp. v. Holmes Products Corp., 427 Mass. 156, 161 (1998). The statute seeks to prevent meritless suits brought and funded by large private interest groups to deter less affluent common citizens from exercising their political or legal rights, or to punish them for doing so. Id. Specifically, Section 59H protects citizens by enabling them to bring a “special motion to dismiss” if a civil claim against them is based on an exercise of a constitutional “right to petition.” G.L.c. 231, §59H. In enacting the anti-SLAPP statute, the legislature intended to enact very broad protection for petitioning activity. Id.

Before the Court may properly consider the merits of defendants’ Special Motion, we must first address plaintiffs contention that defendants’ Special Motion must be dismissed because it was filed more than sixty days since service of the Complaint on the defendants. A special motion to dismiss brought pursuant to G.L.c. 231, §59H, may be filed within sixty days of the service of the complaint or, in the court’s discretion, at any later time upon terms it deems proper.

Here, the complaint was served on all defendants on February 21, 2002, by the Worcester County Deputy Sheriff. Although the Special Motion was not filed with the Court until April 25, 2002, the defendants submit that said Motion was served on plaintiffs counsel on April 10, 2002, and that plaintiffs opposition to said Motion was received back in the time prescribed under Superior Court Rule 9A (10 days).

Examining the relevant statutory time periods, the Court feels compelled to count service from the day of service on opposing counsel — effectively adding 10 days pursuant to Rule 9A. This aggregation provides for a timely filing under the statute. Counsel must not suffer unduly for compliance with a procedural rule, and in this instance, the sanction of Dismissal for Rule 9A compliance would be draconian, and simply wrong. Plaintiffs request to dismiss the Special Motion on this basis is denied.

1. LCC v. Scannell (Counts III and IV)

Pursuant to G.L.c.

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Bluebook (online)
14 Mass. L. Rptr. 706, Counsel Stack Legal Research, https://law.counselstack.com/opinion/auburn-medical-investors-ltd-partnership-v-audette-masssuperct-2002.