Hidalgo v. Watch City Construction Corp.

Massachusetts Supreme Judicial Court·Decided March 25, 2026·No. SJC 13787·Published

Opinion

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SJC-13787 ANDRES HIDALGO vs. WATCH CITY CONSTRUCTION CORP. & another.1

Middlesex. December 5, 2025. – March 25, 2026.

Present: Budd, C.J., Gaziano, Kafker, Wendlandt, Georges, Dewar, & Wolohojian, JJ.

"Anti-SLAPP" Statute. Practice, Civil, Attorney's fees, Appeal, Motion to dismiss. Massachusetts Wage Act.

Civil action commenced in the Waltham Division of the District Court Department on March 17, 2021.

A special motion to dismiss was heard by Ellen M. Caulo, J., and a motion for reconsideration was also heard by her.

Following review by the Appeals Court, 105 Mass. App. Ct.

148 (2024), motions for appellate attorney's fees and for reconsideration were considered by a panel of that court, and the Supreme Judicial Court granted leave to obtain further appellate review.

David E. Belfort (Robert S. Mantell also present) for the plaintiff.

Elliott M. Loew for the defendants.

Ellen J. Messing, Raven Moeslinger, Lucas Newbill, Oren Sellstrom, & Mirian Albert, for Massachusetts Employment Lawyers Association & another, amici curiae, submitted a brief.

1 Mainor Ariel Zepeda.

KAFKER, J. This appeal concerns an award of appellate attorney's fees under G. L. c. 231, § 59H, more commonly known as the "anti-SLAPP" statute. The plaintiff, Andres Hidalgo, sued his employer, Watch City Construction Corp., and its owner, Mainor Ariel Zepeda (collectively, Watch City), for violations of the Wage Act, G. L. c. 149, §§ 148-150, and related counts (Wage Act claims). Watch City brought counterclaims against Hidalgo for, inter alia, abuse of process and malicious prosecution. In response, Hidalgo filed and, after an interlocutory appeal, ultimately prevailed on a special motion to dismiss the counterclaims pursuant to the anti-SLAPP statute. Hidalgo thereafter sought appellate attorney's fees and costs for the anti-SLAPP work, using the "lodestar" method as the basis of his request -- that is, multiplying the number of hours reasonably spent by reasonable hourly rates. He did not seek to recover attorney's fees for any legal work regarding the Wage Act claims, which have not yet been tried. In its order, the Appeals Court panel assumed the hours and rates were reasonable for the anti-SLAPP work but nevertheless halved the fee award because it concluded the award was disproportionate to the relatively low amount of damages at stake in Hidalgo's Wage Act

claims.2 We granted Hidalgo's application for further appellate review, limited to the issue of appellate attorney's fees.

We conclude that the Appeals Court panel erred in reducing the attorney's fee award for the anti-SLAPP work performed on appeal. As we have previously emphasized, the lodestar method for determining the amount of attorney's fees is a reasonable number of hours multiplied by a reasonable rate for the work performed. Here, having found that the number of hours spent and the rates charged regarding the anti-SLAPP motion on appeal were reasonable, particularly because the legal issues regarding anti-SLAPP are notoriously difficult, it was an abuse of discretion to use the monetary value of the Wage Act claims, for which no legal fees were sought, as the basis for reducing the attorney's fees to be awarded for the anti-SLAPP work.3 1. Background. Hidalgo worked for Watch City as an hourly general laborer. On March 17, 2021, Hidalgo filed a six-count civil action in the District Court against Watch City for violations of the Wage Act, G. L. c. 149, §§ 148-150, and

2 Specifically, the panel stated that the hours worked "appear to be reasonable" and that "the rates identified could be appropriate." The panel queried whether the junior lawyer's rate was high, but it noted that its award "should not be construed as challenging the 'market rates' claimed by plaintiff's counsel."

3 We acknowledge the amicus brief submitted by Massachusetts Employment Lawyers Association and Lawyers for Civil Rights.

related claims, alleging that Watch City failed to pay him for four weeks of work. He sought $3,738.67 in lost wages, which amounted to $11,216.01 when trebled under the Wage Act, see G. L. c. 149, § 150. Watch City denied the allegations in its answer and brought counterclaims against Hidalgo for, inter alia, abuse of process and malicious prosecution. Hidalgo filed a special motion to dismiss the counterclaims under the anti- SLAPP statute, arguing that the counterclaims were based solely on his petitioning activity (i.e., his filing of the lawsuit to recover his wages). The motion judge denied Hidalgo's anti- SLAPP motion,4 and Hidalgo filed an interlocutory appeal with the Appeals Court. See Fabre v. Walton, 436 Mass. 517, 521-522 (2002), S.C., 441 Mass. 9 (2004) (doctrine of present execution permits interlocutory appellate review of denial of special motion to dismiss).

The Appeals Court reversed and ordered the dismissal of the counterclaims pursuant to the anti-SLAPP statute. Hidalgo v. Watch City Constr. Corp., 105 Mass. App. Ct. 148, 155 (2024). The Appeals Court thereafter invited Hidalgo to file a petition for appellate attorney's fees and costs pursuant to the fee- shifting provision of the anti-SLAPP statute, G. L. c. 231,

4 The motion judge initially dismissed the counterclaims but changed course after granting Watch City's motion for reconsideration.

§ 59H, fifth par. Id. at 155 n.8. Hidalgo filed a petition seeking $67,361.25 in fees, a sum he reached through use of the lodestar method. See Fontaine v. Ebtec Corp., 415 Mass. 309, 324 (1993). In support of his petition, Hidalgo submitted affidavits from his attorneys, their time records, and affidavits from two other Massachusetts labor and employment lawyers affirming that the hourly rates used in the lodestar calculation were "market rates." Watch City did not oppose the fee request.

In an order dated February 20, 2025, a panel of the Appeals Court awarded Hidalgo $33,680.65 -- one-half of his requested fee -- and held that Hidalgo's requested fee was not reasonable, even though it concluded that the hours and rates used in Hidalgo's lodestar calculation appeared to be reasonable. See note 2, supra. As the panel further explained, "The anti-SLAPP statute issues raised by the appeal were fairly complex, and involved the application of a new standard authored by the Supreme Judicial Court while the appeal was pending." Nevertheless, the panel reasoned that although the lodestar method is an "important touchstone" when evaluating fee requests, Hidalgo's award ought to also reflect the monetary value of his Wage Act claims. "In our discretion," the panel wrote, "we do not find it 'reasonable' to award legal fees of $67,000 in prosecuting . . . two counterclaims raised in

response to an $11,000 claim." Hidalgo moved for reconsideration, the panel denied the motion, and we allowed Hidalgo's application for further appellate review, limited to the issue of appellate attorney's fees.

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