Massachusetts Conveyancers Ass'n v. Colonial Title & Escrow, Inc.

10 Mass. L. Rptr. 103
CourtMassachusetts Superior Court
DecidedFebruary 24, 1999
DocketNo. 962746C
StatusPublished

This text of 10 Mass. L. Rptr. 103 (Massachusetts Conveyancers Ass'n v. Colonial Title & Escrow, 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
Massachusetts Conveyancers Ass'n v. Colonial Title & Escrow, Inc., 10 Mass. L. Rptr. 103 (Mass. Ct. App. 1999).

Opinion

Cratsley, J.

Introduction

These motions are before the court pursuant to the plaintiffs’, as enumerated above, and third-party defendant’s, Jon Davis (“Davis”), special motions to dismiss under G.L.c. 231, §59H. The plaintiffs and third-party defendant, Davis, also filed motions for summary judgment alleging in essence the same defenses raised in the special motions to dismiss. The defendant/third-party plaintiff, Colonial Title & Escrow, Inc. (“Colonial Title”), opposes all of the motions and claims that there are genuine issues of material fact that preclude the grant of plaintiffs’ and Davis’ motions for summary judgment. Colonial Title also argues that the moving parties have not sustained their burden under §59H and thus the court should deny their special motions to dismiss. For the reasons set forth below, this Court GRANTS the plaintiffs’ special motion to dismiss under c. 231, §59H, but DENIES Davis’ special motion to dismiss and his motion for summary judgment.

FACTUAL BACKGROUND

The following facts are taken from the materials submitted by all parties involved in these motions:

[104]*104Colonial Title was incorporated in Rhode Island in September 1992. In its filing with the Rhode Island Secretary of State’s Office, Colonial Title states that it was incorporated to, “engage in and carry on the business of searching real estate title, closing loans, and to engage in and cany on any lawful act or activity for which corporations may be organized under the Rhode Island Business Corporations Act.”

Joseph Párente (“Párente”) and John S. Sweeny (“Sweeny”) are officers, directors and shareholders of Colonial Title. In their affidavits dated July 23, 1998, Párente and Sweeny contend that Colonial Title is engaged in title search work, settlement services to the extent of notarizing documents, and obtaining signatures at settlements. Colonial Title acted as a closing agent for mortgage companies; basically out-of-state mortgage companies operating in Massachusetts. Colonial Title has not operated as a closing agent since June 1996. Since June 1996 Colonial Title has operated as a servicing company for attorneys. Colonial Title has set up real estate files, conducted title work, obtained pay-offs, recorded discharges and closed loans. Support staff in Colonial Title’s office obtained pay-offs, insurance binders, ordered plot plans, ordered title, and made sure that the company had all necessary documents that a bank might request in order to proceed with the settlement of a mortgage loan. [See Exhibits 11 and 12 in support of their opposition to the motions for summary judgment and special motions to dismiss.]

In March 1996 the Massachusetts Association of Bank Counsels (“MABC”) held a dinner forum to permit members of the conveyancing bar to discuss issues that they had in common with title insurance company representatives. Davis is a member of the Board of Directors of both the MABC and the Massachusetts Conveyancers Association (“MCA”). The MABC and the MCA are bar associations whose members are attorneys engaged in the practice of real estate law. Davis is also the Chairman of the MCA’s Practice of Law by Non-Lawyers Committee.

Davis informed those present at the meeting that certain non-attorneys were engaged in closing real estate loans in Massachusetts, and cited Colonial Title as a specific example of an entity engaged in the unauthorized practice of law. Davis added that litigation was imminent against Colonial Title. He then asked the title insurance company representatives who were present at the meeting how they could justify having a relationship with an entity they knew was violating the law. Peter Norden (“Norden”), of First American Title Insurance Company, responded that his company would continue to do business with whatever entities it chose until a Court determined that the entity was violating the law.

After the meeting Davis telephoned Mr. Norden regarding the extent to which a non-lawyer could participate in residential real estate closings. In that conversation Davis advocated to Norden that First American was aiding and abetting Colonial Title’s unauthorized practice of law by issuing an insured closing letter for Colonial Title. Around June 1996 First American withdrew its insured closing letters for all non-attorney closing agents, including Colonial Tide.

In April 1996 Tom Flynn (“Flynn”), of Stewart Title Guaranty Company, terminated its Agency Agreement with Colonial Title. In the excerpts of Flynn’s deposition dated March 10, 1998 he stated that Stewart’s relationship with Colonial Title made it more difficult to promote Stewart Title with existing and prospective agents. He testified that he did not remember what happened at the dinner forum but that no one caused his company to terminate its relationship with Colonial Title. Nevertheless, Flynn insisted that Stewart Title decided to terminate the relationship on its own. [See Exhibit J submitted in support of plaintiffs’ motion for summary judgment.]

DISCUSSION

I. Plaintiffs’ Special Motion To Dismiss

Section 59H of G.L.c. 231 provides, in part:

In any case in which a parly asserts that the civil claims, counterclaims or cross claims against said party are based on said party’s exercise of its right of petition under the constitution, said party may bring a special motion to dismiss ... The court shall grant such special motion, unless the party against whom such special motion is made shows that 1) the moving party’s exercise of its right to petition was devoid of any reasonable factual support or any arguable basis in law, and 2) the moving party’s acts caused actual injury to the responding party.

The special movant who asserts protection for its petitioning activities has to make a threshold showing through the pleadings and affidavits that the claims against it are based on the petitioning activities. Duracraft Corp v. Holmes Products Corp., 427 Mass. 156, 167-68 (1998). Once the special movant so demonstrates, the burden shifts to the nomnoving party as provided in the anti-SLAPP statute. Id.; G.L.c. 231, §59H.

A) Colonial Title’s Counterclaims against the Bar Associations4

Colonial Title has filed four counterclaims against the plaintiffs bar associations. These are for (1) Interference with Business Relationship, (2) Civil Conspiracy, (3) Violation of G.L.c. 93A, and (4) Violation of Anti-trust laws. First, Colonial Title argues that Mr. Davis pressured First American into canceling its insured letters resulting in harm to Colonial Title, and thus interfering with its business relationship with the insurance company. Second, to support its claim of conspiracy, Colonial Title argues that the mere association of this number of bar associations joining in this lawsuit represents, in and of itself, a civil conspir[105]*105acy to put Colonial Title out of business. Third, Colonial Title bases its violation of c. 93A claim on its allegation that the filing of this lawsuit is itself an effort to prevent competition. Fourth and lastly, Colonial Title argues that the plaintiffs are violating the Massachusetts Anti-Trust Act, G.L.c. 90, §§1 et seq., by illegally restraining trade. Colonial Title’s sole basis for this allegation consists of the plaintiffs’ filing of this lawsuit.

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Bluebook (online)
10 Mass. L. Rptr. 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-conveyancers-assn-v-colonial-title-escrow-inc-masssuperct-1999.