Brooks Automation, Inc. v. Blueshift Technologies, Inc.

20 Mass. L. Rptr. 541
CourtMassachusetts Superior Court
DecidedJanuary 24, 2006
DocketNo. 053973BLS2
StatusPublished
Cited by2 cases

This text of 20 Mass. L. Rptr. 541 (Brooks Automation, Inc. v. Blueshift Technologies, Inc.) 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
Brooks Automation, Inc. v. Blueshift Technologies, Inc., 20 Mass. L. Rptr. 541 (Mass. Ct. App. 2006).

Opinion

Gants, Ralph D., J.

On September 16, 2005, the plaintiff Brooks Automation, Inc. (“Brooks”) tiled this action alleging that its former employee, Peter van der Meulen (“van der Meulen”), had breached the non-compete provision of his Separation Agreement, which barred him from competing with Brooks for a period of one year following his termination of employment, and his Non-Disclosure Agreement, which barred him [542]*542from divulging Brooks’s trade secrets and confidential information. Brooks also alleged that van der Meulen and the corporation he had incorporated after he left Brooks’s employ — Blueshift Technologies, Inc. (“Blue-shift”) — had tortiously interfered with Brooks’s prospective contractual relations with Applied Materials, Inc. (“Applied Materials") through improper means.

The origin of this litigation was that Brooks had been attempting to sell its semiconductor wafer manufacturing technology to Applied Materials, a large manufacturer of computer chip manufacturing equipment, but Applied Materials appeared to have lost interest in closing the deal. Brooks filed suit when it learned that Applied Materials was negotiating with Blueshift to purchase its semiconductor wafer manufacturing technology. Brooks contended that van der Meulen had violated the non-compete provision of his Separation Agreement and had stolen trade secrets he had learned at Brooks, which Blueshift had then allegedly used in developing the semiconductor wafer manufacturing technology it was trying to sell to Applied Materials.

Shortly after the complaint was filed, the defendants filed an emergency motion to expedite the trial. Defense counsel argued that a speedy trial was essential to the interests of justice because, until these claims were resolved, Blueshift would be unlikely to be able to close any deals with prospective customers and would have great difficulty persuading venture capitalists to invest the additional funds needed to keep the new company afloat until revenue began to flow in. In short, Blueshift contended that, if this case proceeded on the usual fast track, Blueshift, for all practical purposes, would lose even if it prevailed at trial, because it would no longer be financially viable by the time of the verdict. Along these same lines, Blueshift also contended that Brooks would win even if it lost at trial, because it would have effectively accomplished its purpose of neutralizing Blueshift as a competitor. This Court found Blueshift’s arguments persuasive, especially since Brooks’s attorney at the hearing was unable to articulate with clarity or precision which trade secrets van der Meulen had allegedly stolen or how he had purportedly engaged in competition during the one-year non-compete period. As a result, on September 27, 2005, trial was scheduled to begin on Monday, November 14, 2005, and discovery was placed on a greatly expedited schedule.1

On October 12, 2005, Blueshift filed a counterclaim alleging that Brooks had violated G.L.c. 93A and tortiously interfered with Blueshift’s contractual relationship with Applied Materials by filing the lawsuit on the afternoon of Friday, September 16, 2005 and informing Applied Materials of the lawsuit by email on Sunday, September 18, 2005, before it had served or even notified the defendants or defense counsel of its filing. On October 28, 2005, Brooks moved to dismiss the counterclaim, contending that Brooks had an absolute privilege to inform Blueshift’s prospective client of the filing of this lawsuit. In denying Brooks’s motion to dismiss on November 14, 2005, this Court wrote:

Brooks is correct that, if the filing of the civil action was not itself wrongful, neither a tortious interference nor a Chapter 93A claim may rest solely on Brooks having informed Blueshift’s prospective client of the existence of this lawsuit, even if Brooks’ purpose in telling the client were to ruin Blueshift’s chances of closing a prospective deal with the client. See generally Doe v. Nutter, McClennen & Fish, 41 Mass.App.Ct. 137, 140 (1996). However, Blueshift’s counterclaim of tortious interference with contract may prevail if Brooks initiated this civil action without “probable cause to believe the suit will succeed” and if Brooks, in filing suit, was “acting primarily for a purpose other than that of properly adjudicating [its] claims.” G.S. Enterprises, Inc. v. Falmouth Marine, Inc., 410 Mass. 262, 273 (1991). If Blueshift can satisfy these elements, then Brooks’ notification to the prospective client regarding the existence of the lawsuit is admissible, not as an element of the tortious interference, but as evidence of Brooks’ primary motive in filing the action and of the causal connection between the lawsuit and Blueshift’s damages.
If Blueshift can prove the elements of a tortious interference with contract, then it may also prevail in proving that these same acts constituted an unfair or deceptive act or practice in trade or commerce, in violation of G.L.c. 93A.

Order on Plaintiffs Motion to Dismiss Counterclaim at pp. 1-2 (Nov. 14, 2005).

On the eve of trial, Brooks filed a second motion to dismiss, this one being a special motion to dismiss under what has become known as the anti-SLAPP statute, G.L.c. 231, §59H (“the special SLAPP motion to dismiss”) 2 In a special SLAPP motion to dismiss under §59H, Brooks bore the initial burden of proving by a preponderance of the evidence “that the activity at issue is ‘petitioning’ activity within the purview of the anti-SLAPP statute and that the claims in the litigation ‘are based on the petitioning activities alone and have no substantial basis other than or in addition to the petitioning activities.’ ” Fabre v. Walton, 436 Mass. 517, 522 (2002), quoting Duracraft Corp. v. Holmes Prods. Corp., 427 Mass. at 167-68. See also Office One, Inc. v. Lopez, 437 Mass. 113, 122 (2002); Baker v. Parsons, 434 Mass. 543, 550 (2001). This Court, prior to the trial, found that Brooks had met its initial burden of proving that Blueshift’s counterclaims were “based on the petitioning activities alone and [had] no substantial basis other than or in addition to the petitioning activities.” Fabre v. Walton, 436 Mass. at 522. This Court reasoned that, under §59H, the term, “a party’s exercise of its right to petition,” is defined as:

[543]*5431. “any written or oral statement made before or submitted to a legislative, executive, or judicial body, or any other governmental proceeding”:
2. “any written or oral statement made in connection with an issue under consideration or review by a legislative, executive, or judicial body, or any other governmental proceeding”;
3. “any statement reasonably likely to encourage consideration or review of an issue by a legislative, executive, or judicial body or any other governmental proceeding”;
4. “any statement reasonably likely to enlist public participation in an effort to effect such consideration”; or
5. “any other statement falling within constitutional protection of the right to petition government.”

G.L.c. 231, §59H. From looking at these alternative definitions, it became clear that the Legislature chose not to define this right to petition narrowly.

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Related

Pegasystems, Inc. v. Manning
32 Mass. L. Rptr. 303 (Massachusetts Superior Court, 2014)
Brooks Automation, Inc. v. Blueshift Technologies, Inc.
21 Mass. L. Rptr. 53 (Massachusetts Superior Court, 2006)

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20 Mass. L. Rptr. 541, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brooks-automation-inc-v-blueshift-technologies-inc-masssuperct-2006.