Doe v. Harbor Schools, Inc.

446 Mass. 245
CourtMassachusetts Supreme Judicial Court
DecidedMarch 14, 2006
StatusPublished
Cited by71 cases

This text of 446 Mass. 245 (Doe v. Harbor Schools, Inc.) 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
Doe v. Harbor Schools, Inc., 446 Mass. 245 (Mass. 2006).

Opinion

Marshall, C.J.

We determine in this case when a cause of action accrues on a claim for breach of fiduciary duty predicated [246]*246on the alleged sexual misconduct of a male counsellor toward a young woman in his care. On January 23, 1997, the plaintiff, Jane Doe, filed a complaint in the Superior Court against her former counsellor, Glen Freeman, and Freeman’s former employer, Harbor Schools, Inc. (Harbor),3 alleging, among other things, that Freeman breached his fiduciary duty to Doe by means of his sexual conduct with her.4 The alleged misconduct occurred in the spring of 1993, when Doe was eighteen years old. Doe effectively terminated the relationship in November, 1993. The defendants moved for summary judgment on the ground that Doe’s claims were brought outside the three-year statute of limitations that governs tort actions. See G. L. c. 260, § 2A.5 Doe countered that her 1997 complaint was timely under the “discovery rule,” because she did not make and reasonably could not have made the causal connection between her emotional problems and Freeman’s conduct until the summer of 1994, when she revealed the sexual nature of the relationship to others and for the first time realized that Freeman had abused her. See Taygeta Corp. v. Varian Assocs., 436 Mass. 217, 229 (2002) (under “discovery rule” applicable in tort actions, limitations period does not start running until such time as plaintiff “knows, or reasonably should have known” of causal connec[247]*247tian between defendant’s action and her injury); Bowen v. Eli Lilly & Co., 408 Mass. 204, 205-206 (1990) (same).

A judge in the Superior Court allowed the defendants’ motions for summary judgment on all claims, concluding that, because Doe knew or should have known by November, 1993, at the latest, that she had been harmed by Freeman’s conduct, her suit was untimely. See Malapanis v. Shirazi, 21 Mass. App. Ct. 378, 383 (1986) (“On an appropriate record, summary judgment may be granted on the question whether a particular statute of limitations has run”). The Appeals Court affirmed the judgment except as to the claim for “negligent breach of fiduciary duty.” Doe v. Harbor Schs., Inc., 63 Mass. App. Ct. 337, 350 (2005). See note 4, supra. The Appeals Court held that the proper standard to apply to that claim was not the discovery rule but the more subjective “actual knowledge standard,” which provides that “a cause of action for breach of fiduciary duty does not accrue until the beneficiary has actual knowledge of the fiduciary’s breach. Constructive knowledge is insufficient.” Lattuca v. Robsham, 442 Mass. 205, 213 (2004). See Demoulas v. Demoulas Super Mkts., Inc., 424 Mass. 501, 519 (1997) (“An actual knowledge standard applies to a plaintiff who argues that a breach of fiduciary duty of disclosure constitutes fraudulent concealment under G. L. c. 260, § 12”).6 The Appeals Court held a genuine issue of material fact to exist as to (1) whether “a fiduciary relationship existed between Freeman and [Doe] and required Freeman to use his contacts with [Doe] solely to help her, not himself,” and (2) when Doe actually knew, “when it came home to her,” that Freeman was not just causing her psychological harm but was by his acts breaching the fiduciary duties he had assumed. Doe v. Harbor Schs., Inc., supra at 348. The case was remanded to the Superior Court for further proceedings. Id. 350. We granted the defendants’ application for further appellate review, limited to issues concerning the claim for breach of fiduciary duty.

We affirm the decision of the Superior Court judge on the [248]*248claim for breach of duty, but on different grounds from those articulated by him. See Hawthorne’s, Inc. v. Warrenton Realty, Inc., 414 Mass. 200, 210 n.6 (1993) (appellate court may affirm judgment on grounds different from those advanced by judge below). While we agree with the Appeals Court that the actual knowledge standard should be applied to the claim for breach of fiduciary duty, we differ on two dispositive points. First, we conclude that no question of material fact exists concerning whether Freeman had a fiduciary duty to Doe to refrain from sexual conduct with her; as Doe’s counsellor he had such a duty. Second, we hold that the critical event that starts the limitations period running on a claim for breach of fiduciary duty is when the plaintiff first becomes aware of facts giving rise to her injury by the defendant, and not, as the Appeals Court stated, when the plaintiff first understands the causal connection between her injuries and a legally cognizable claim against the defendant. The record in this case, in particular Doe’s own deposition testimony, leaves no doubt that Doe knew she was harmed by Freeman’s conduct by November, 1993, at the latest. Therefore, as a matter of law her claim for breach of fiduciary duty, filed in January, 1997, was untimely.

1. Facts. We summarize the facts in the light most favorable to Doe. See Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991). Jane Doe was bom on November 13, 1974, and spent most of her childhood in various temporary residences of relatives and foster parents. Some of Doe’s caretakers were sexually or physically abusive to her. In April, 1992, when she was seventeen years of age and in the legal custody of the Department of Social Services (department), Doe was placed in a group residential home for young women transitioning to independence. The group home was operated by Harbor, a nonprofit organization, under the auspices of the department.

On the first day of Doe’s placement, Freeman, a supervisor at the home, introduced himself as her “one-on-one counselor.”7 As a “one-on-one counselor,” Freeman’s assignment was to help Doe learn how to organize her life: making appointments [249]*249with health care professionals and to visit relatives, arranging transportation, buying clothing, and the like, according to Doe’s needs. The position required no specific training; Freeman had a business degree and was not licensed as a mental health professional.

From the outset of the relationship, Freeman attempted to gain Doe’s trust and develop an intimacy with her. Although he initially told Doe that he was supposed to meet with her weekly, he soon began meeting with her two or more times a week. In these meetings, Freeman encouraged Doe to reveal highly personal matters to him, including the details of a past rape. Doe testified at her deposition that Freeman told her: “Because he was my counselor I had to tell him [these] things in order to work on my issues.” Further blurring their formal relationship, Freeman confided in Doe that he was unhappy with his marriage and that his wife would not have sexual relations with him.

Freeman showered Doe with special favors. He often took her to dinner outside of the group home, took long drives with her, taught her to drive, and picked her up from school in his automobile.8 He told her that other staff members did not like her.

By the fall of 1992, around the time Doe turned eighteen years of age, Freeman told Doe that he loved her. He sent her flowers, gave her $2,000 toward the purchase of an automobile, and bought jewelry and other gifts for her.

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Bluebook (online)
446 Mass. 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doe-v-harbor-schools-inc-mass-2006.