FRE Building Co. v. JB&D Construction of NJ, Inc.

19 Mass. L. Rptr. 300
CourtMassachusetts Superior Court
DecidedMarch 30, 2005
DocketNo. 044124
StatusPublished

This text of 19 Mass. L. Rptr. 300 (FRE Building Co. v. JB&D Construction of NJ, 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
FRE Building Co. v. JB&D Construction of NJ, Inc., 19 Mass. L. Rptr. 300 (Mass. Ct. App. 2005).

Opinion

Murtagh, J.

This matter is before the court on the request of the defendant Western World Insurance Company (“the defendant”), for amotion to dismiss the complaint of the plaintiff, FRE Building Company, Inc. (“the plaintiff’). In support of its motion, the defendant argues that the plaintiffs claim for declaratoiy relief should be dismissed because the plaintiff failed to demonstrate a justiciable controversy under G.L.c. 231 A, § 1 and failed to include necessary parties to this action pursuant to Mass.R.Civ.P. 12(b)(7) and 19(a). In the alternative, the defendant requests that this court transfer this matter to the Suffolk Superior Court Business Litigation Session. In opposition, the plaintiff maintains that it has met the requirements of G.L.c. 231A, §1, as well as included all necessary parties to this declaratory judgment action. For the following reasons, the defendant’s motion to dismiss is DENIED.

BACKGROUND

For purposes of this motion to dismiss, the court summarizes the allegations in the complaint as follows.

The plaintiff is the general contractor employed to provide construction services at a building project (“the project”) in Bellingham, Massachusetts. The plaintiff entered into a construction contract (“the contract”) with defendant JB&D Construction of NJ, Inc. (“JB&D”) to provide carpentry work and other related services at the project. The terms of the contract required and obligated JB&D, a subcontractor for the plaintiff, to procure liability insurance and to name the plaintiff as an additional insured under JB&D’s liability policy. The defendant issued an insurance policy providing “Commercial General Liability” coverage to JB&D and designated the plaintiff as an additional insured.

On December 30, 2002, Iris Almeida (“Almeida”), a carpenter employed by JB&D, allegedly sustained bodily injuries while working at the project. On September 15, 2003, Almeida notified the plaintiff of his intent to file a civil action seeking recovery of his alleged losses by serving a G.L.c. 93A demand letter [301]*301upon the plaintiff as well as a copy of the complaint which Almeida intended to file.2

In a letter dated September 22, 2003, the defendant agreed to indemnify and defend the plaintiff in a potential lawsuit brought- by Almeida. However, the defendant then retracted this agreement to defend and indemnify the plaintiff in a letter dated February 6, 2004.

The plaintiff filed the instant action on October 18, 2004, seeking declaratory relief under G.L.c. 231 A. In essence, the plaintiff requests a declaratory judgment that it is entitled to be defended and indemnified by JB&D and the defendant in an action filed by Almeida in accordance with the terms of the written contract between JB&D and the plaintiff, and with the insurance policy issued by the defendant naming the plaintiff as an additional insured.

DISCUSSION

When evaluating the sufficiency of a complaint, the court must accept as true the well pleaded factual allegations of the complaint, as well as any inferences which can be drawn therefrom in the plaintiffs favor. Faimeny v. Savogran Co., 422 Mass. 469, 470 (1996); Eyed v. Helen Broad Corp., 411 Mass. 426, 429 (1991). A complaint should not be dismissed “unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Nader v. Citron, 372 Mass. 96, 98 (1977), quoting Conley v. Gibson, 355 U.S. 41, 45-46 (1957). All inferences should be drawn in the plaintiffs favor in the complaint “so as to do substantial justice.” Ourfalian v. Aro Mfg. Co., Inc. 31 Mass.App.Ct. 294, 296 (1991).

A. Justiciable Controversy

The defendant argues that because Almeida has yet to actually file a complaint in court against the plaintiff, the plaintiffs claim for declaratory relief cannot satisfy the actual controversy requirement set forth in G.L.c. 231A, §1. This court does not agree.

G.L.c. 231A authorizes this court to “make binding declarations of right, dufy, status, and other legal relations sought thereby, either before or after a breach or violation thereof has occurred in any case in which an actual controversy has arisen and is specifically set forth in the pleadings and whether any consequential judgment or relief is or could be claimed at law or in equity or not.” G.L.c. 231A, §1. To obtain declaratory relief, there must be a “ ‘real dispute’ caused by the assertion by one party of a duty, right, or other legal relation in which he has a ‘definite interest’ in circumstances indicating that failure to resolve the conflict will almost inevitably lead to litigation.” District Attorney for the Suffolk Dist. v. Watson, 381 Mass. 648, 659 (1980), quoting Bunker Hill Distrib., Inc. v. District Attorney for the Suffolk County, 376 Mass. 142, 144 (1978). An actual controversy exists for purposes of G.L.c. 231A “where the circumstances . . . indicate that, unless a determination is had, subsequent litigation as to the identical subject matter will ensue.” Boston v. Keene Corp., 406 Mass. 301, 304 (1989). A declaratory judgment action “is a vehicle for resolving actual, not hypothetical, controversies.” Quincy City Hosp. v. Rate Setting Comm'n, 406 Mass. 431, 439 (1990).

In the present case, a justiciable controversy exists between the plaintiff and the defendant for purposes of G.L.c. 231A, §1. Alemida served a G.L.c. 93A demand letter upon the plaintiff, evidencing his firm intention to file a civil action against the plaintiff. Contrary to the defendant’s assertions, this matter does not pertain to hypothetical controversies simply because Almeida has not yet filed suit against the plaintiff. Just as “the case law does not compel insurers to defend claims as a prerequisite to bringing a declaratory judgment action to [determine] whether they have a duty to defend,” Dorchester Mut. Fire Ins. Co. v. First Kostas Corp., Inc., 49 Mass.App.Ct. 651, 656 (2000), neither must insureds wait until a claim is filed against them before determining whether they will be defended. See also Boston Symphony Orchestra, Inc. v. Commercial Union Ins. Co., 406 Mass. 7, 15-16 (1989) (“[T]he availability of an action for declaratory relief should not be ignored by insurance companies. The existence of a duty to defend can be established quickly and efficiently in such an action where there is a question as to the applicability of an insurance policy”). The policy underlying the declaratory judgment statute is to afford relief from uncertainty and insecurity with respect to the rights of parties. See Nelson v. Commissioner of Corr., 390 Mass. 379, 388 (1983). This policy is not advanced by requiring the plaintiff to postpone seeking a determination of its rights under an indemnity contract until a law suit is actually filed against it. Accordingly, this court finds that the plaintiff sufficiently set forth an actual controversy for purposes of a declaratory judgment.

B. Necessary Parties

The defendant argues that the plaintiffs claim should be dismissed pursuant to Mass.R.Civ.P. 12(b)(7) because the plaintiff failed to join three (3) necessary parties, including Almeida, Liberty Mutual Insurance Company (“Liberty Mutual”), the plaintiffs insurance carrier, and Fafard Real Estate and Development Corp.

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Related

Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Boston Symphony Orchestra, Inc. v. Commercial Union Insurance
545 N.E.2d 1156 (Massachusetts Supreme Judicial Court, 1989)
Nelson v. Commissioner of Correction
456 N.E.2d 1100 (Massachusetts Supreme Judicial Court, 1983)
City of Boston v. Keene Corp.
547 N.E.2d 328 (Massachusetts Supreme Judicial Court, 1989)
Ourfalian v. Aro Manufacturing Co.
577 N.E.2d 6 (Massachusetts Appeals Court, 1991)
Eyal v. Helen Broadcasting Corp.
583 N.E.2d 228 (Massachusetts Supreme Judicial Court, 1991)
District Attorney for the Suffolk District v. Watson
411 N.E.2d 1274 (Massachusetts Supreme Judicial Court, 1980)
Quincy City Hospital v. RATE SETTING COMMISSION
548 N.E.2d 869 (Massachusetts Supreme Judicial Court, 1990)
Nader v. Citron
360 N.E.2d 870 (Massachusetts Supreme Judicial Court, 1977)
Paige v. Sinclair
130 N.E. 177 (Massachusetts Supreme Judicial Court, 1921)
Bunker Hill Distributing, Inc. v. District Attorney
379 N.E.2d 1095 (Massachusetts Supreme Judicial Court, 1978)
Fairneny v. Savogran Co.
422 Mass. 469 (Massachusetts Supreme Judicial Court, 1996)
Martell v. Teachers' Retirement Board
479 N.E.2d 191 (Massachusetts Appeals Court, 1985)
DeSimone v. Civil Service Commission
541 N.E.2d 358 (Massachusetts Appeals Court, 1989)
Dorchester Mutual Fire Insurance v. First Kostas Corp.
731 N.E.2d 569 (Massachusetts Appeals Court, 2000)

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Bluebook (online)
19 Mass. L. Rptr. 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fre-building-co-v-jbd-construction-of-nj-inc-masssuperct-2005.