Macy's Retail Holdings, Inc. v. General Growth Properties-GGP Ltd. Partnership

24 Mass. L. Rptr. 103
CourtMassachusetts Superior Court
DecidedMay 16, 2008
DocketNo. 072351
StatusPublished

This text of 24 Mass. L. Rptr. 103 (Macy's Retail Holdings, Inc. v. General Growth Properties-GGP Ltd. Partnership) 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
Macy's Retail Holdings, Inc. v. General Growth Properties-GGP Ltd. Partnership, 24 Mass. L. Rptr. 103 (Mass. Ct. App. 2008).

Opinion

Fremont-Smith, Thayer, J.

The plaintiff Macy’s Retail Holdings, Inc. (“Macy’s”) has brought suit against the defendants, General Growth Properties-GGP Limited Partnership (“GGP”) and the Natick Mall, LLC (the “Mall”), seeking to enjoin defendants’ proposed expansion of the Mall3 and damages for defendants’ alleged breach of contract relating thereto.

Defendants have counter-claimed. Macy’s asserts that the defendants’ counterclaims arise out of Macy’s protected petitioning activity in having filed this action, and have filed a special motion to dismiss under G.L.c. 231, §59H, the “Anti-Slapp Statute.”

FACTS

A special motion to dismiss under the Anti-SLAPP statute requires the Court to “consider the pleadings and supporting and opposing affidavits stating the facts upon which the liability or defense is based.” G.L.c. 231, §59H.

Plaintiffs’ complaint seeks to enjoin the defendants from further development of commercial and residential space at the Natick Mall, an approximately 54-acre area located at the intersection of Route 9 and Speen Street, and alleges that defendants are in breach of a 1993 contract between their predecessors in interest and in breach of a subsequent lease agreement, pursuant to which defendants agreed not to proceed with any further development at the Mall without plaintiffs’ consent.

While it is not disputed that defendants’ predecessors in interest did enter into such agreements, it is likewise not disputed that plaintiffs subsequently entered into an “assurance” agreement with the Attorneys General of Massachusetts and other states who were investigating the potential anti-competitive impact of Macy’s proposed merger with Federated. In order to obviate such anticompetitive concerns, plaintiffs agreed in 2005, with respect to the Natick Mall, to “waive, dismiss or release any current rights to oppose the Natick Mall expansion project.” In addition, when plaintiffs were subsequently advised of the details of defendants’ proposed expansion, they indicated orally to defendants that they would have no objection, and defendants then proceeded to incur substantial costs in regard thereto.

Moreover, when the plaintiffs thereafter appealed the Natick Zoning Board’s approval of the defendants’ proposed expansion of the Mall by filing an action with the Land Court, the Chief of the Massachusetts Attorney General’s Consumer Protection and Antitrust Division notified plaintiffs in writing that it considered plaintiffs’ attempt to thwart the defendants’ development of the Mall by way of plaintiffs’ Land Court action, to be a violation of the “assurance” agreement’s undertaking to “waive, dismiss and release any rights to oppose the Natick Mall expansion project.” As a result, plaintiffs entered into a November 11, 2005, Letter Agreement, which states: “Federated hereby waives (and shall cause each of its relevant affiliates to waive) all claims that have been or that could have been asserted in such [Land Court] action and releases (and shall cause each of its relevant affiliates to release) General Growth and its relevant affiliates from all liabilities in connection therewith.” ¶2. As a consequence, plaintiffs then, on November 22,2005, agreed to a dismissal of their Land Court lawsuit with prejudice. See Stipulation of Dismissal, Macy’s East, Inc. v. Julian Munnich et al., Misc. No. 301080 (Mass. Land Court, Middlesex County).

A portion of plaintiffs’ claims in the Land Court action are the same claims as are made in their present action, and are therefor “waived” and “released” under the claim preclusion doctrine. Under the doctrine of res judicata, “for claim preclusion to bar [a plaintiffs] action, three elements are required: (1) the identity or privity of the parties to the present and prior actions; (2) identity of the cause of action; and (3) prior final judgment on the merits.” Gloucester Marine Railways Corp. v. Charles Parisi, Inc., 36 Mass.App.Ct. 386,390 (1994) (holding that the plaintiff failed to revive a claim that it could have previously presented in a prior action). Here, the parties are the same in the present action as in the Land Court action.4 Second, in both matters the cause of action is the same.5 Claim preclusion does not require an identical cause of action. Mass. Sch. of Law at Andover v. American Bar Assoc., 142 F.3d 26, 38 (1st Cir. 1998). “The relevant test simply asks whether the same parties pursued a remedy that arose from the same ‘transaction’ in an earlier proceeding that ended with a final judgment.” United States v. Cunan, 156 F.3d 110, 116 (1st Cir. [104]*1041998). The present action, in part, arises out of the same transaction or occurrence as the prior action. In the Land Court, plaintiffs sought declaratoiy and injunctive relief against the defendants, for breach of covenants and property rights under the COREA,6 whereas, in the present action, the plaintiffs likewise seek injunctive relief for alleged violations of Macy’s rights “under the COREA, the Letter Agreement, and the First Amendment.” Plaintiffs Verified Complaint ¶75.7 Finally, a stipulation of dismissal with prejudice is the equivalent of a final judgment on the merits for the purposes of claim preclusion. Jarosz v. Palmer, 436 Mass. 526, 536 (2002) (“Because claim preclusion involves the same claims and the same parties, it is necessary that a stipulation of dismissal be accorded the same effects as a final judgment; it would have no force if the parties were permitted to change their minds and relitigate the exact same claims against the same parties”). Therefore, as plaintiffs have waived their claims that the COREA has been breached by GGP’s expansion, they are hereby precluded from these claim in the present suit.8

In these circumstances, the Court views plaintiffs’ latest attempt to thwart defendants’ mall expansion by means of the present action, to be, in the words of G.L.c. 231, §59H, “devoid of any reasonable factual support or arguable basis in law,”9 and, indeed, to be in violation of the spirit, if not the letter of Macy’s “assurance” agreement with the Attorney General that they would not oppose defendants’ future expansion of the mall. As such; plaintiffs’ action can be viewed as being in violation of public policy.

Nor can it be said, even as an initial or “threshold” matter, that defendants’ counterclaims have “no substantial basis other than or in addition to the plaintiffs petitioning activities.” Duracraft Corp. v. Holmes Products Corp., 427 Mass. 156, 167-68 (1998). Here, the counterclaims allege that plaintiffs unfairly and deceptively agreed, orally and in writing, that they would not oppose defendants’ mall expansion, and then breached those assurances and agreements prior to and independently of their lawsuit, by sending defendants a letter dated June 18, 2007 and other correspondence indicating that plaintiffs considered defendants, by undertaking the expansion, to be in default of their contractual obligations.10 These acts preceded their lawsuit and were not petitioning activity as defined in the statute.11

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Cunan
156 F.3d 110 (First Circuit, 1998)
Gloucester Marine Railways Corp. v. Charles Parisi, Inc.
631 N.E.2d 1021 (Massachusetts Appeals Court, 1994)
Bell v. Mazza
474 N.E.2d 1111 (Massachusetts Supreme Judicial Court, 1985)
Pheasant Ridge Associates Ltd. Partnership v. Town of Burlington
506 N.E.2d 1152 (Massachusetts Supreme Judicial Court, 1987)
Duracraft Corp. v. Holmes Products Corp.
691 N.E.2d 935 (Massachusetts Supreme Judicial Court, 1998)
Jarosz v. Palmer
766 N.E.2d 482 (Massachusetts Supreme Judicial Court, 2002)
Kobrin v. Gastfriend
821 N.E.2d 60 (Massachusetts Supreme Judicial Court, 2005)
Vittands v. Sudduth
730 N.E.2d 325 (Massachusetts Appeals Court, 2000)
Ayasli v. Armstrong
780 N.E.2d 926 (Massachusetts Appeals Court, 2002)
Charlette v. Charlette Bros. Foundry, Inc.
793 N.E.2d 1268 (Massachusetts Appeals Court, 2003)
Garabedian v. Westland
796 N.E.2d 439 (Massachusetts Appeals Court, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
24 Mass. L. Rptr. 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macys-retail-holdings-inc-v-general-growth-properties-ggp-ltd-masssuperct-2008.