Lucas v. Newton-Wellesley Hospital

13 Mass. L. Rptr. 352
CourtMassachusetts Superior Court
DecidedJuly 20, 2001
DocketNo. CA010635
StatusPublished

This text of 13 Mass. L. Rptr. 352 (Lucas v. Newton-Wellesley Hospital) 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
Lucas v. Newton-Wellesley Hospital, 13 Mass. L. Rptr. 352 (Mass. Ct. App. 2001).

Opinion

Brassard, J.

The plaintiffs, Krista Lucas, Jared Lucas, Stacey Lucas and Devin Lucas (collectively “the Lucases”) brought suit against Newton-Wellesley Hospital, Newell Health Care Systems Inc., Ronald E. Bartlett, Deborah A. Norton, and Attorney Robert L. Bouley (“Bouley”), alleging, among other things, that Bouley committed fraud (Count VI) by making affirmative misrepresentations and failing to supplement interrogatory answers in a prior lawsuit. Bouley contends that his conduct during the course of that litigation is absolutely privileged, and therefore, the Lucases’ fraud claim must be dismissed. After a hearing and careful review of the papers, Bouley’s motion to dismiss is ALLOWED.

BACKGROUND

The Complaint alleges the following facts.

(1) The Malpractice Suit

On May 2, 1991, Krista Lucas was born at NewtonWellesley Hospital (“Hospital”). Hospital officials provided Krista with deficient care, and as a result, Krista’s jaundice developed into cerebral palsy. In 1994, the Lucases filed a malpractice suit against the Hospital and various employees including Nurse Madeleine Loan (“Nurse Loan”) and Nurse Patricia Bogatowski (“Nurse Bogatowski”). Medical Professional. Insurance Company (“ProMutual”), the Hospital’s primary malpractice insurer, was notified of the Lucases’ claim and took over the defense of the lawsuit. At the Hospital’s request, ProMutual hired Attorney Bouley, who had previously represented the Hospital in a number of lawsuits, to represent both the Hospital and Nurse Loan.

(2) The Lexington Policy

In addition to a $2 million dollar ProMutual policy, the Hospital also held an excess insurance policy from Lexington Insurance Company (“Lexington”), which provided additional coverage ranging from $5-$10 million. Because the Hospital and its vice presidents, Ronald E. Bartlett (“Bartlett”) and Deborah A. Norton (“Norton”), were engaged in a scheme to keep insurance premiums low, they purposely failed to notify Lexington of the Lucases’ lawsuit. Likewise, because it did not want to be pressured by Lexington to settle the lawsuit, ProMutual kept the amount it reserved for the Lucases’ claim artificially low so that Lexington would erroneously conclude that it faced no exposure when it received ProMutual’s list of pending claims.

Attorney Bouley knew or should have known about the Lexington insurance policy. Bouley, who was aware of the Hospital and ProMutual’s shared reluctance to notify Lexington of the Lucases’ lawsuit, did [353]*353not disclose the Lexington policy to the Lucases through document productions or interrogatory answers. Moreover, Bouley conspired with the Hospital and ProMutual to conceal the Lexington policy from the Lucases by stating that the only available insurance coverage was the ProMutual policy.

On February 11, 1998, a Middlesex Superior Court jury found Nurse Loan liable and awarded the Lucases $10.5 million in damages.3 ProMutual then paid the Lucases the $2 million policy limit on behalf of Nurse Loan. Lexington, however, refused to pay the Lucases the remaining money, contending that it had not been properly notified of the Lucases’ lawsuit.4

(3) Nurse Bogatowski’s Interrogatories

In or about June 1995, while the underlying suit was pending, Nurse Bogatowski wrote a letter to Bouley notifying him that answers she had given to previous interrogatories were incorrect. Specifically, Bogatowski indicated that upon further reflection, she recalled Krista Lucas as being far more jaundiced than she had previously stated in her initial interrogatory answers. Despite having received the letter, Bouley failed to take any steps to amend Bogatowski’s interrogatory responses. Bogatowski was not found liable in the malpractice suit.

In an effort to recover the remaining portion of the jury verdict, the Lucases filed the present suit on February 9, 2001, alleging breach of contract and breach of the covenant of good faith and fair dealing against the Hospital (Counts I & II); negligence, violations of G.L.c. 93A, and interference with advantageous relations against the Hospital, Bartlett and Norton (Counts III, IV & V); and fraud against Bouley (Count VI). Bouley’s motion to dismiss Count VI is now before the court.

DISCUSSION

When evaluating the sufficiency of a complaint, the court must take as true the factual allegations of the complaint, as well as any inferences which can be drawn in the plaintiffs favor. Mass.R.Civ.P. 12(b)(6), Eyal v. Helen Broadcasting Corp. 411 Mass. 426, 429 (1991), and cases cited. The complaint should not be dismissed for failure to state a claim “unless it appears beyond a 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). A complaint is not subject to dismissal if it could support relief under any theory of law. Whitinsville Plaza, Inc. v. Kotseas, 378 Mass. 85, 89 (1979).

To state a viable fraud claim, the Lucases must allege sufficient facts demonstrating: (1) that Bouley made a false representation of material fact with knowledge of its falsity; (2) that Bouley made the statement for the purpose of inducing the Lucases to act thereon; and (3) that the Lucases relied on the statement to their detriment. See Macoviak v. Chase Home Mortg. Corp., 40 Mass.App.Ct. 755 (1996). Here, the Lucases contend that because they relied on Bouley’s representations that no excess insurance policy existed, they did not timely notify Lexington of the jury award, and are now precluded from collecting it by the terms of the policy. The Lucases further contend that had Bouley supplemented the interrogatory answers of Nurse Bogatowski, she would have been found liable in the malpractice suit and they would be able to collect judgment from her. In response, Bouley argues that the Lucases’ claim must be dismissed because it is premised on statements and actions he made in the course of litigation, which statements and actions are absolutely privileged and cannot give rise to civil liability.5

It is well-settled that an attorney’s statements are privileged “where such statements are made by an attorney engaged in his function as an attorney whether in the institution or conduct of litigation or in conference and other communications preliminary to litigation.” See Sriberg v. Raymond, 370 Mass. 105, 109 (1976). This doctrine is grounded in “the public policy of permitting attorneys complete freedom of expression and candor in communications in their efforts to secure justice for their clients.” Id. at 884. The absolute privilege “provides a complete defense even if the offensive statements are uttered maliciously or in bad faith,” see Doe v. Nutter, McClennen & Fish, 41 Mass.App.Ct. 137, 140 (1996), so long as the challenged remarks are relevant or pertinent to the judicial proceedings. See Sullivan v. Birmingham, 11 Mass.App.Ct. 359, 362 (1981); compare Kurky v. Hill, 44 Mass.App.Ct. 184, 191 (1996) (litigation privilege does not encompass attorney conduct in counseling and assisting clients in business matters generally). The privilege that attaches to such statements protects the maker from any civil liability thereon. Doe, 41 Mass.App.Ct. at 140.

In Srbierg v. Raymond, 370 Mass.

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13 Mass. L. Rptr. 352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lucas-v-newton-wellesley-hospital-masssuperct-2001.