Massachusetts Port Authority v. Employers Insurance of Wausau

19 Mass. L. Rptr. 32
CourtMassachusetts Superior Court
DecidedDecember 21, 2004
DocketNo. 953079A
StatusPublished

This text of 19 Mass. L. Rptr. 32 (Massachusetts Port Authority v. Employers Insurance of Wausau) 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 Port Authority v. Employers Insurance of Wausau, 19 Mass. L. Rptr. 32 (Mass. Ct. App. 2004).

Opinion

Sikora, J.

Upon consideration of all motion and opposition materials; of the massive summary judgment record submitted by the combined parties; and of the oral argument by all parties at the hearing of October 6, 2004; the court rules as follows.

1. It DENIES defendant Employers Insurance of Wausau, A Mutual Company’s motion for summary judgment in toto.

2. It DENIES counterclaim defendant Massachusetts Port Authority’s motion for summary judgment in toto.

REASONING

Introduction: Summary Judgment Standards

Multiple canons of summary judgment adjudication apply to these cross motions for summary judgment. They apply especially to Wausau’s motion for summary judgment against the c. 93A/c. 176D claim by MassPort (Count One) that the insurer has engaged in (a) unfair or deceptive acts or practices prohibited by c. 93A, 2 and 9; and (b) that the insurer has engaged in unfair claim settlement practices forbidden by c. 93A, 9(1) and c. 176D, 3(9). Any discussion of these guidelines for application for summary judgment is conspicuously absent from Wausau’s original memorandum of law and from its reply memorandum of law. MassPort does refer to several of these summary judgment criteria at appropriate points in the course of its memorandum and opposition to Wausau’s motion.

1. The motion judge must examine all factual materials in the light most favorable to the opposing party. See e.g., Corellas v. Viveiros, 410 Mass. 314, 316-17 (1991); Conley v. MBTA, 405 Mass. 168, 173 (1989); Kelley v. Rossi, 395 Mass. 659, 661 (1985).

2. Summary judgment requires both the governing law and the resulting material facts to be settled. Mass.R.Civ.P. 56(c); Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989); and J.W. Smith & H.B. Zobel, Rules Practice 56.8, 1st paragraph.; and 56.7, 2nd paragraph (1977 ed. & 2002 Supp.).

3. Summary judgment is typically unsuitable for the disposition of claims containing as a material element the mental status of a party. Pederson v. Time, Inc., 404 Mass. 14, 17 (1989) (cases collected). The mental state may include the intent of a party. Gurry v. Cumberland Farms, Inc., 406 Mass. 615, 624 (1990); FDIC v. Porter, 46 Mass.App.Ct. 241, 245 (1999); and Madden v. Estin, 28 Mass.App.Ct 392, 395 (1990). It [33]*33may include also motivation. Flesner v. Technical Communication Corporation, 410 Mass. 805, 809 (1991). It will include also the knowledge of a party, and specifically of an insurance company charged with bad-faith, unreasonable, or unfair claim handling practices. See O’Leary-Alison v. Metropolitan Property & Casualty Insurance Company, 52 Mass.App.Ct. 214, 217 (2001); Bolden v. O’Connor Cafe of Worcester, Inc., 50 Mass.App.Ct. 56,66-67 (2000); and Williams v. Gulf Insurance Company, 39 Mass.App.Ct. 432, 436 (1995).

4. Summary judgment is unsuitable also for resolution of any claim depending upon an element of credibility. The factfinder must observe and determine the credibility typically from a live witness. See e.g., Smith v. Suburban Restaurants, Inc., 374 Mass. 528, 530-32 (1978); Subin v. Goldsmith, 224 F.2d 753, 757-61 (2d Cir. 1955), cert. denied 350 U.S. 883.

5. A material issue of reasonableness of judgment or reasonableness of reliance upon facts or opinion is also typically inappropriate for resolution by summary judgment. “The application of the reasonable person standard is uniquely within the competence of the jury [or judge as factfinder upon evidence].” DeVaux v. American Home Assurance Co., 387 Mass. 814, 819 (1983). See also Manning v. Nobile, 411 Mass. 382, 388 (1991); Appleby v. Daily Hampshire Gazette, 395 Mass. 32, 37(1985); Foley v. Matulewicz, 17 Mass.App.Ct. 1004, 1005 (1984).

6. Unfair conduct within the meaning of c. 93A, 2, 9, or 11 is typically circumstantial rather than categorical. The unfair acts acquire their character from the circumstances of each case. This variable and circumstantial nature of unfair and therefore actionable conduct under c. 93A renders such claims peculiarly difficult for disposition by summary judgment. See e.g., Linkage Corporation v. Trustees of Boston University, 425 Mass. 1, 22-27 (1997); Doliner v. Brown, 21 Mass.App.Ct. 692, 698 (1986); Levings v. Forbes & Wallace, Inc., 8 Mass.App.Ct. 498, 504 (1979).

7. The greater probability or plausibility of success by a party does not amount to an entitlement to summary judgment foreclosing the determination of an issue without trial. Litigants should not confuse their estimation of probable success with an entitlement to summary judgment. Attorney General v. Bailey, 386 Mass. 367, 371 (1982), cert. denied sub nom. Bailey v. Belloti, 459 U.S. 970 (1982).

8. These guidelines suggest two common sense corollaries.

(a) The more numerous the factors or circumstances necessary for determination of a material question of fact, the less susceptible is that fact to summary judgment disposition.
(B) Factual issues of a technical nature disputed by conflicting expert opinion are typically resistant to summary disposition. The factfinder must entertain and weigh the conflicting expert opinions in order to reach a more reliable determination of a technical factual issue.

I. Wausau’s Motion for Summary Disposition of MassPort’s Claim of c. 93A/ c. 176D Unfair Claims Settlement Practices

MassPort alleges that Wausau committed three unfair claim settlement practices prohibited and actionable under c. 93A, 9(1) and c. 176D, 3(9). The alleged unfair practices are (a) “failing to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonable clear”; (b) “refusing to pay claims without conducting a reasonable investigation based upon available information”; and (c) “compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insured.” These prohibitions appear in subsections (f), (d), and (g) respectively, of c. 176D.

Upon the basis of factual materials accumulated and collected to date, Wausau seeks summary judgment against the 93A/176D specifications upon two grounds. The first is that no genuine issue of material fact exists for trial upon the specifications. The second is that MassPort has failed to furnish a required notice-and-demand letter under the standards of c. 93A, 9(3). I will examine each contention.

A. Existence of Genuine Issues of Material Fact Concerning Unfair Claim Handling Practices by Wausau

1. The following essential points emerge from the chronology of pretrial and post-trial claim handling and negotiations between Wausau and MassPort from the time of the pier fire in October 1993, to the time of final payment of the claim in June 2002. This chronology is not complete or exhaustive. It does capture the essential and undisputed points of that long his-toiy.

2. MassPort’s insurer, Kemper, paid $920,000 for the pier loss. Wausau learned of this payment in approximately late May of 1995. Kemper thereafter forwarded a complete subrogation package to Wau-sau.

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19 Mass. L. Rptr. 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-port-authority-v-employers-insurance-of-wausau-masssuperct-2004.