Baxter, Inc. v. Landry

23 Mass. L. Rptr. 220
CourtMassachusetts Superior Court
DecidedApril 2, 2007
DocketNo. 0400395
StatusPublished

This text of 23 Mass. L. Rptr. 220 (Baxter, Inc. v. Landry) 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
Baxter, Inc. v. Landry, 23 Mass. L. Rptr. 220 (Mass. Ct. App. 2007).

Opinion

Connon, Richard F., J.

This matter is before the Court on defendant’s motion for summary judgment pursuant to Mass.R.Civ.P. 56(c). The defendants, William S. Landiy (Landiy), Gregoiy P. Fromm (Fromm), Jonathan T. O’Neill (O’Neill), International Union of Operating Engineers Local #4 (Local 4) and City Crane Corp., d/b/a/ Cape Crane (City Crane), filed this motion for summary judgment alleging that no genuine issue of material fact exists and that defendants are entitled to judgment as a matter of law. For the following reasons, the defendants’ motion for summary judgment is ALLOWED.

BACKGROUND

The undisputed facts viewed in the light most favorable to the non-moving party as revealed by the summary judgment record are as follows.

The plaintiff, Baxter, Inc. (Baxter), is a West Yarmouth-based, non-union business which provides heavy equipment, crane and related services for businesses and individuals on Cape Cod. City Crane is an Avon, Massachusetts-based union signatory which provides heavy equipment, crane and related services for businesses and individuals, both on and off Cape Cod. Defendants Landiy, Fromm and O’Neill are equipment operators and former employees of Baxter. The defendants worked on an hourly basis in non-managerial positions for Baxter. They worked without non-compete and non-solicitation agreements with Baxter. Defendant Local 4 is a labor organization that has engaged in organizing activities throughout Eastern Massachusetts, New Hampshire and Maine over the last ten years. Local 4’s goal is to provide union representation to heavy equipment operators working in the construction industiy.

Baxter alleges that, through its Director of Organizing, John Panaro (Panaro), Local 4 orchestrated a plan whereby it caused a union signatory, City Crane, to open a facility on Cape Cod in direct competition with Baxter and further caused Baxter’s employees to leave Baxter and work for City Crane. According to Baxter, Panaro implied through phone calls and a union newsletter, that Baxter Crane could be left debilitated by the union’s actions and City Crane would be in position to fill any resulting void in the Cape Cod market. Defendants Landiy, Fromm and O’Neill were allegedly dissatisfied with their working conditions at Baxter because they were paid less than half of what union operators were paid and received fewer benefits. On March 26, 2001, Panaro organized a “walkout” among the Baxter crane operators and the operators refused to work until Jonathan Baxter met with them and Panaro. Baxter refused to meet with Panaro and refused to organize voluntarily. In response, Local 4 filed a Representation Petition with the National Labor Relations Board (NLRB) which sought a union representation election for the crane operators employed by Baxter. Local 4 won the ensuing election, but on May 16, 2001, Baxter challenged the results and alleged that Local 4 threatened to “blackball” certain employees if they did not support the union effort. The union filed a counterclaim charge against Baxter on May 24, 2001. Through the months of June and July 2001, Local 4 and Baxter negotiated for the mutual withdrawal of their charges before the NLRB and Local 4 agreed to officially withdraw their petition to unionize Baxter.

In June 2001, while still negotiating with Baxter, Panaro allegedly arranged a meeting with City Crane’s owner, William Rizzi (Rizzi) to discuss opening a facility on Cape Cod. After some negotiating, a formal memorandum of understanding was entered into between City Crane and Local 4. According to the memorandum, City Crane was to open up a facility on Cape Cod and in return a number of concessions were granted by the union which would allow Cape Crane to be competitive within the Cape Cod market. In June 2001, a meeting was arranged between Panaro, Rizzi and a number of Baxter’s crane operators. The purpose of the meeting was to discuss the crane operator’s possible employment with City Crane. During the months of June and July of 2001, Landiy, Fromm and O’Neill left Baxter Crane and went to work for City Crane.

Upon opening the new office on Cape Cod, "Rizzi instructed Landiy and Fromm to generate new business by calling numbers out of the local phone book. Baxter alleges that many Baxter customers were solicited by Cape Crane. A regular customer, Karl Anderson of Karl’s Boat Yard, received a fax cover sheet with a price list from Cape Crane on July 24, 2001. In addition, Baxter alleges that other regular customers received faxed price lists and some customers received personal visits from former Baxter employees attempt[221]*221ing to solicit business for Cape Crane. In one case, Baxter claims that O’Neill attempted to solicit work for Cape Crane while still working at Baxter Crane as he indicated to the Baxter customer that he would be going to work for Rizzi shortly. Baxter alleges that Panaro, using the union’s power and influence, created a union presence on the Cape and exercised its control over Baxter’s employees to staff this competing company. Baxter claims that Panaro sought to destroy Baxter Crane and that he used the union’s money, power and influence to effectuate his plan.

DISCUSSION

Summary judgment shall be granted when there is no genuine dispute as to any material fact and the summary judgment record entitles the moving party to judgment as a matter of law. Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community Nat’l Bank v. Dawes, 369 Mass. 550, 553 (1976); Mass.R.Civ.P. 56(c). The moving party bears the burden of affirmatively demonstrating that there is no genuine issue of material fact on every relevant issue. Pederson v. Time, Inc., 404 Mass. 14, 17 (1989). Once the party establishes the absence of a triable issue, the party opposing the motion must allege specific facts establishing the existence of a genuine issue of material fact. See Pederson, 404 Mass. at 17; Godbout v. Cousens, 396 Mass., 254, 261 (1985). A party moving for summary judgment who does not bear the burden of proof at trial may demonstrate the absence of a triable issue either by submitting affirmative evidence negating an essential element of the non-moving party’s case or by showing that the non-moving party has no reasonable expectation of proving an essential element of its case at trial. Flesner v. Technical Communications Corp., 410 Mass. 805, 809 (1991); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991). On a motion for summary judgment, the court considers the pleadings, depositions, answers to interrogatories, admissions on file, and affidavits to determine whether summary judgment is appropriate. McGuiness v. Cotter, 412 Mass. 617, 620 (1992). In determining whether genuine issues of fact exist, the court must draw all inferences from the underlying facts in the light most favorable to the party opposing the motion. Bailey v. Bellotti, 459 U.S. 970 (1982).

‘To establish intentional interference with contractual or business relations, the plaintiffs must show (1) the existence of a contract or a business relationship which contemplated economic benefit; (2) the defendants’ knowledge of the contract or business relationship; (3) the defendants’ intentional interference with the contractual or business relationship for an improper purpose or by improper means; and (4) damages.” Swanset Dev. Corp. v. City of Taunton, 423 Mass. 390, 397 (1996). In the response to defendant’s Statement of Undisputed Facts, Baxter concedes that it did not have any exclusive contracts, but had regular customers with whom they routinely contracted.

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Bluebook (online)
23 Mass. L. Rptr. 220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baxter-inc-v-landry-masssuperct-2007.