Commonwealth of Massachusetts v. Elm Medical Laboratories Inc.

2 Mass. Supp. 626
CourtMassachusetts Superior Court
DecidedAugust 11, 1981
DocketNo. 41839
StatusPublished

This text of 2 Mass. Supp. 626 (Commonwealth of Massachusetts v. Elm Medical Laboratories 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
Commonwealth of Massachusetts v. Elm Medical Laboratories Inc., 2 Mass. Supp. 626 (Mass. Ct. App. 1981).

Opinion

Introduction

Taken as true, see, Nader v. Citron, 372 Mass. 96 (1977), the allegations of defendants Elm Medical, Dr. BaezGiangreco and Ms. Attianese (hereinafter collectively referred to as Elm) in their amended cross-claim describe a course of conduct by the government defendants which destroyed Elm’s business without once giving Elm an opportunity to present its version of the facts to a neutral factfinder. By means of press releases and press conferences, during which the government defendants purported to factually report on the quality of Elm’s services, the government effectively discouraged potential customers from utilizing Elm’s pathology laboratory services. This adverse publicity has forced Elm into bankruptcy and continues to interfere with the ability of the individuals involved to work- in their chosen profession. Although the government’s tortious conduct is specifically excepted from coverage under the Massachusetts Tort Claims Act, G.L. c. 258, for reasons more fully set out below I rule that Elm’s claim that it was denied due process under the Massachusetts Civil Rights Act, G.L. c. 12, sec. Ill, survives this motion to dismiss.

I. Allegations

On April 22, 1980, the Massachusetts Department of Public Health (Department) along with the. Federal Department of Health and Human Services conducted a joint state-federal inspection of Elm Medical Laboratory. A joint inspection of this type, requested by the Department and lasting five full working days, had never before been conducted in the history of the Department. Indicative of the bad faith in the inspection, Elm alleges that on one occasion during the inspection period, Nancy T. Ridley, Director of Survey Operations for the Department, appeared during the inspection accompanied by persons having no connection with the Department and in a loud, inebriated state, harassed and intimidated employees of Elm. While the inspection was in progress, Ridley consented to an interview with a Channel Four investigative team, during the course of which she divulged information pertaining to the inspection of Elm. Elm disputes the accuracy of the information reported.

After observing the operational procedures employed by Elm and as a result of other information gathered in the course of the inspection, Ridley urged the Attorney General to file an action to enjoin Elm’s operations under G.L. c. 93A, sec. 4. The Attorney General made an ex parte motion for a temporary restraining order which was granted on May 9, 1980. The Department failed to notify Elm of the impending action and made no attempt to insure Elm’s participation nor to request voluntary action by Elm to discontinue operations temporarily.

,On May 19, 1980, Channel Four news aired an investigative report which was based ‘in part oh information secured from the Department and focused on Elm’s operations. Forewarned of this investigative report and its contents, beginning on May 14, 1980, Elm attempted to have the Department [629]*629conduct a second inspection of its operations. The officials'at Elm felt that a properly performed inspection would both vindicate Elm and diminish the impact of Channel Four’s report. For reasons known only to the Department; it failed to conduct another inspection until July 21, 1980, and then only upon threat of judicial action.

On J uly 2, 1980, the Department issued án “Heaith Alert” at a well-attended press conference. The Alert purported to notify1 all former Elm clients, both physicians and patients,' that Elm improperly screened or actually misread PAP smear tests,1 placing some women at risk; According to Elm, the alert contained inaccurate statements and projections about the quality of Elm’s services.

On July 21, 1980,. the. Department conducted a second inspection of Elm. utilizing pathologists from Veterans Administration . hospitals. . The pathologists have conducted other inspections for the Department for a fee. Although the chief of the. investigative team indicated he would recommend that Elm reopen, the report pleased by the Department reached a contrary conclusion, allegedly occasioned by‘Ms. Ridley’s influence over:the process. The Department has continued to contact Elm clients to inform - them of the Department’s . purported factual determinations.

I., Massachusetts Tort Claims Act

In enacting G.L. c. 258, sec.. 2, inserted by St. , 1978, - -c. .512, sec. 15, this Commonwealth has taken a giant first Step toward developing a rational scheme of governmental liability that is consistent with accepted tort principles and the reasonable expectations of the citizenry with respect to- its government. Cf. Whitney v. Worcester, 373 Mass. 208, 215 (1977). Nevertheless, as, with the Federal Tort Claims. Act after which the Massachusetts Act was modeled, See, 28 U.S.C. sec. 2671 et seq., numerous exceptions limit the reach of the Act, particularly limitations of liability with respect to delibérate torts. See, G.L. c. 258, sec. 10(c). Since the Act counsels that liability be imposed on the Commonwealth “in the same manner and to the same extent as a private individual under like circumstances . . .”, G.L. c. 258, sec. 2, the task for this Court is to ascertain the thrust of the complaint as if it involved private individuals. See, Black v. Sheraton Corp. of America, 564 F.2d 531, 539 (D.C. Cir. 1977). Since the Act excepts from its coverage certain deliberate torts, this Court must carry out the additional duty of determining whether a complaint which states a cause of action under one of the barred torts also states a separate cause of action under a theory which is not barred. See, Quinones v. United States, 492 F.2d 1269, 1273 (3rd Cir. 1974); see also, Comment, 6 Rutgers Camden L.J. 842 (1975). In the present case, the government conduct complained of reduces to four types of tortious activities, all of which are barred by the statutory exceptions contained in G.L. c. 258 secs. 10(b), 10(c).

A. Pretrial Publicity, the “Health Alert” and Continued Public Statements

The publicity engendered by the Department in connection with its early investigation as well as the issuance of the 'Health Alert and subsequent announcements are actionable in this Commonwealth against a private person under a libel or slander theory. See, Myers v. Boston Magazine Co., 1980 Mass. Adv. Sh. 907; National Assodation of Governmental Employees, Inc. v. Central Broadcasting Corp., 1979 Mass. Adv. Sh. 2485. Although Elm couches its allegations in terms of negligent gathering and processing of data, clearly the publication caused the harm. As libel and slander, these actions are specifically excluded from compensation under the Act. G.L. c. 258, sec. 10(c). See, Mizokami v. United States, 414 F.2d 1375 [630]*630(Ct. Cl. 1969). See also, Gellhorn, Adverse Publicity by Administrative Agencies, 86 Harv. L. Rev. 1380, 1437 (1973). In view of this disposition, I need not consider whether any privilege attached to the communications. See, Sriberg v. Raymond, 370 Mass. 105, 109. (1976); Sullivan v. Birmingham, 1981 Mass. App. Ct. Adv. Sh. 326, 328-329; Restatement (Second) of Torts secs. 586, 587, 604, 605 (1977). Elm has faded to suggest, and this Court has been unable to discover, any cause of action in negligence under the facts alleged. See, Quinones v. United States, 492 F.2d at 1278 (Pennsylvania law would recognize duty to use due care in keeping and maintaining employment records independent of an action for libel). Cf. Restatement (Second) of Torts sec. 324A (Liability to Third Person for Negligent Performance of Undertaking).

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2 Mass. Supp. 626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-of-massachusetts-v-elm-medical-laboratories-inc-masssuperct-1981.