Chapman v. University of Massachusetts Medical Center

670 N.E.2d 166, 423 Mass. 584, 12 I.E.R. Cas. (BNA) 1405, 1996 Mass. LEXIS 219
CourtMassachusetts Supreme Judicial Court
DecidedSeptember 24, 1996
StatusPublished
Cited by22 cases

This text of 670 N.E.2d 166 (Chapman v. University of Massachusetts Medical Center) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chapman v. University of Massachusetts Medical Center, 670 N.E.2d 166, 423 Mass. 584, 12 I.E.R. Cas. (BNA) 1405, 1996 Mass. LEXIS 219 (Mass. 1996).

Opinion

O’Connor, J.

On July 20, 1990, the plaintiff, Margaret M. Chapman, commenced this contract action against the defendant, University of Massachusetts Medical Center (UMMC). UMMC is an agency of the Commonwealth. McNamara v. Honeyman, 406 Mass. 43, 47-48 (1989). Following a jury-waived trial, a judge in the Superior Court found that UMMC had terminated Chapman’s employment in violation of contract resulting in damages of $243,144.25. On January 10, 1992, judgment entered for Chapman for $243,144.25 “with [585]*585interest thereon from July 20, 1990, in the sum of $42,995.48 as provided by law” and costs. On appeal, this court affirmed the judgment. Chapman v. University of Mass. Medical Ctr., 417 Mass. 104 (1994).

Following that decision, according to the Superior Court docket entries, an amended judgment after rescript was entered on April 19, 1994, awarding Chapman $243,144.25, “with interest thereon from June 6, 1986 [instead of from July 20, 1990, as provided in the original judgment] to the date of judgment in the sum of $163,149.63 plus additional interest from the date of judgment, January 10, 1992 to the date of judgment after rescript in the sum of $109,969.97 as provided by law” and costs. The amended judgment was entered by an assistant clerk and UMMC neither appealed from it nor sought to amend it pursuant to Mass. R. Civ. P. 59 (e), 365 Mass. 827 (1974). The clerk of the court, however, refused to issue an execution that would include the $109,969.97, which was postjudgment interest.

The clerk’s refusal to issue an execution that would include postjudgment interest prompted Chapman to move for an order that would require the clerk to “include interest on the judgment in Chapman’s favor to the date of execution.” The judge who heard the case on the merits (trial judge) denied the motion. She set forth her reasoning in a memorandum of decision, to which we shall return later in this opinion. Chapman appealed.

Chapman and UMMC filed in the Superior Court a joint motion for the issuance of a certificate of judgment for an award of damages and prejudgment interest in the sum of $406,293.88 ($243,144.25 plus $163,149.63). They stipulated that payment of that amount would not prejudice Chapman’s appeal of the denial of postjudgment interest. The substantive issue on appeal, then, is whether Chapman is entitled to post-judgment interest from January 10, 1992, to the date of the execution.

This court granted Chapman’s application for direct appellate review. While the appeal was pending, UMMC moved in this court for leave to file in the Superior Court a motion for relief from the amended judgment insofar as it included post-judgment interest and for a stay of the appellate proceedings until the contemplated Superior Court motion was decided. A single justice of this court allowed UMMC’s motion. Then, in [586]*586the Superior Court, the trial judge allowed UMMC’s motion for relief from judgment insofar as it included postjudgment interest, after which the stay of appellate proceedings in this court was lifted.

In denying Chapman’s motion for an order requiring the clerk to include postjudgment interest to the date of execution, the judge reasoned that (1) UMMC is an agency of the Commonwealth, which Chapman does not dispute; (2) “ ‘an action for interest after judgment is a separate action based upon a statutory right and is not part of the underlying [contract] claim on which the judgment is based,’ C & M Constr. Co. v. Commonwealth [396 Mass. 390, 391-392 (1985)]”; (3) postjudgment interest is not an element of damages; rather, postjudgment interest is designed to compensate a party for their loss of use of money; (4) therefore, the Commonwealth (and hence UMMC) is not liable for postjudgment interest in the absence of a clear statutory waiver of sovereign immunity in that regard; and (5) no such statutory waiver exists. The judge ordered that Chapman’s “motion for postjudgment interest is DENIED.” However, the judge did not explicitly order that the provision for postjudgment interest be eliminated from the amended judgment.

While conceding that no Massachusetts court decision or statute directly authorizes plaintiffs to recover postjudgment interest from the Commonwealth in contract actions, Chapman argues that because the Commonwealth has waived sovereign immunity from contract liability by common law and this court has held the Commonwealth liable for prejudgment interest for breach of contract, see, e.g., Addison Gilbert Hosp. v. Rate Setting Comm’n, 397 Mass. 56, 59-60 (1986); C. & R. Constr. Co. v. Commonwealth, 334 Mass. 232, 233 (1956), the Commonwealth should be liable for postjudgment interest in contract cases as well. We disagree, essentially for the reasons set forth by the Superior Court judge.

The statute providing for postjudgment interest, G. L. c. 235, § 8 (1994 ed.), states that “[e]very judgment for the payment of money shall bear interest from the day of its entry . ...” In C & M Constr. Co. v. Commonwealth, 396 Mass. 390, 393 (1985), we rejected the plaintiff’s claim for postjudgment interest on a judgment in a prior contract action against the Commonwealth, reasoning as follows:

“This court has recognized that a statute awarding [587]*587postjudgment interest in eminent domain cases evinced a legislative intent that G. L. c. 235, § 8, not be applied to claims against the Commonwealth. Broadhurst [v. Director of the Div. of Employment Sec., 373 Mass. 720, 726 (1977)]. See Woodworth v. Commonwealth, [353 Mass. 229 (1967)]. If that were not so, G. L. c. 235, § 8, would have made the enactment of a separate statute awarding postjudgment interest in eminent domain cases an unnecessary and redundant legislative gesture. In expressly providing for interest until payment in one type of proceeding, we assume the Legislature meant to ‘[exclude] by implication other similar matters not mentioned.’ McArthur Bros. [v. Commonwealth, 197 Mass. 137, 139 (1908)]. General Elec. Co. v. Commonwealth, [329 Mass. 661, 664 (1953)]. The same logic disposes of C & M’s claim that G. L. c. 235, § 8, applies here.”

Accord Onofrio v. Department of Mental Health, 411 Mass. 657, 660 n.5 (1992) (“General Laws c. 235, § 8 [1990 ed.], which provides that every judgment shall include postjudgment interest, does not apply to claims against the Commonwealth. C & M Constr. Co., supra at 393, and cases cited”).

The rationale of C & M Constr. Co. v. Commonwealth, supra, controls this case. As the judge here noted, in C & M Constr. Co., we reasoned that “an action for interest after judgment is a separate action based on a statutory right and is not part of the underlying claim on which the judgment is based.” Although the plaintiff attempts to distinguish our decision in C & M Constr. Co., supra, based on the fact that in that case, the plaintiff brought a second action for postjudgment interest, such distinction is without significance. The Appeals Court clarified the nature of a postjudgment interest claim in the following statement:

“[I]n C & M Constr. Co. v. Commonwealth, 396 Mass, at 391-392, there was no liability for postjudgment interest (during the time required for the appropriation of funds to satisfy the judgment).

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Bluebook (online)
670 N.E.2d 166, 423 Mass. 584, 12 I.E.R. Cas. (BNA) 1405, 1996 Mass. LEXIS 219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-v-university-of-massachusetts-medical-center-mass-1996.