New England Auto Max, Inc. v. Hanley

Massachusetts Supreme Judicial Court·Decided May 20, 2024·No. SJC 13419·Published

Opinion

NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557- 1030; SJCReporter@sjc.state.ma.us

SJC-13419

NEW ENGLAND AUTO MAX, INC., & others1 vs. MICHAEL HANLEY2 & others.3

Suffolk. February 5, 2024. - May 20, 2024.

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

Supreme Judicial Court, Superintendence of inferior courts.

District Court, Jurisdiction, Appellate Division.

Practice, Civil, Damages, Interlocutory appeal, Appellate Division: appeal, Motion to dismiss. Damages. Statute, Construction.

Civil action commenced in the Supreme Judicial Court for the county of Suffolk on January 19, 2023.

The case was heard by Georges, J.

Mark A. Aronsson (William A. Raven also present) for the petitioners.

Robert Richardson (Edward C. Cumbo also present) for Michael Hanley & another.

1 New England AutoMax, Inc.; and Howard Wilner.

2 Individually and on behalf of all others similarly situated.

3 Christopher Trombley, individually and on behalf of all others similarly situated; and Quincy Division of the District Court Department, as a nominal party.

DEWAR, J. A civil case may proceed to trial in the District Court or Boston Municipal Court only if there is no reasonable likelihood that recovery by the plaintiff will exceed $50,000, on penalty of dismissal without prejudice to refiling in the Superior Court. G. L. c. 218, §§ 19, 19A (b). The petitioners, who are defendants in the underlying civil action, unsuccessfully moved to dismiss that action for exceeding the $50,000 limit.4 They then petitioned this court for extraordinary relief under G. L. c. 211, § 3. A single justice denied relief on the ground that the defendants had an alternate avenue of appellate relief, and we allowed the defendants' appeal from that decision to proceed.

Today we conclude that the single justice did not err or abuse his discretion in denying relief to these defendants, but we exercise our discretion to decide the question of law they present. We hold that, under G. L. c. 231, § 108, these defendants had a right to an interlocutory appeal to the Appellate Division of the District Court (Appellate Division) on the question of law they press before this court -- an alternate avenue of appellate review that would ordinarily preclude relief

4 For ease of reference, we refer to the petitioners and respondents by their status as defendants and plaintiffs in the underlying action.

under G. L. c. 211, § 3. We recognize, however, that the question of law the defendants raise relates to the administration of justice in our trial courts, and we exercise our general superintendence power to address it. We conclude that the District Court judge erred in holding that G. L. c. 218, § 19A, constrains a court from looking beyond a plaintiff's initial statement of damages in assessing whether there is a reasonable likelihood that recovery by the plaintiff will exceed $50,000. Rather, the statute requires the court to consider the nature of the action itself -- and thus the complaint then before the court. We therefore remand the case to the county court for entry of an order vacating the denial of the defendants' motion to dismiss and remanding to the District Court for further proceedings consistent with today's opinion.

1. Background. a. Statutory scheme. In 2004, the Legislature enacted the current versions of G. L. c. 218, §§ 19 and 19A, to establish a Statewide "one trial" system for civil cases and simplify the allocation of cases between the Superior Court and the District and Boston Municipal Courts. See St. 2004, c. 252, §§ 5, 6; Sperounes v. Farese, 449 Mass. 800, 802-803 (2007). General Laws c. 218, § 19, vests the District and Boston Municipal Courts with original jurisdiction over civil actions for money damages. The statute further provides, however, that actions for money damages "may proceed" in these

courts rather than in Superior Court "only if there is no reasonable likelihood that recovery by the plaintiff will exceed [$50,000]."5 Id. The statute specifies that, "[w]here multiple damages are allowed by law, the amount of single damages claimed shall control." Id.

General Laws c. 218, § 19A, prescribes the procedures for implementing this nonjurisdictional $50,000 limit. See Sperounes, 449 Mass. at 801. Most relevant here, a plaintiff, upon commencing an action for money damages, must submit a statement of damages estimating the plaintiff's potential damages if the plaintiff prevails. See G. L. c. 218, § 19A (a). The defendant is entitled to file a competing statement of damages with the defendant's answer. Id. The statute then sets forth the circumstances in which a judge may dismiss a plaintiff's action for failure to comply with the $50,000 limit, the details of which we reserve for our discussion below.

If a judge does dismiss a plaintiff's action under this provision, the plaintiff may recommence the action in the appropriate court within thirty days, with the filing fee reduced by the amount the plaintiff initially paid. G. L. c. 218, §§ 19A (b), (d). A plaintiff may also appeal from the

5 The statutory limit increased from $25,000 to $50,000 in 2020 under the governing standing order. See Supreme Judicial Court, Order Regarding Amount-in-Controversy Requirement Under G. L. c. 218, § 19, and G. L. c. 212, § 3 (July 17, 2019).

dismissal to a single justice of the Appeals Court, and the single justice's decision "shall be final." G. L. c. 218, § 19A (c). The statute expressly forecloses "any post-judgment relief in any case" based on "[v]iolation of the requirements for proceeding in the district court or Boston municipal court departments." G. L. c. 218, § 19A (b).

b. Prior proceedings. The underlying action arises out of the plaintiffs' alleged employment at the automobile dealership business operated by the defendants, New England Auto Max, Inc., New England AutoMax, Inc., and Howard Wilner. On June 14, 2022, plaintiff Michael Hanley filed a putative class action complaint in the District Court, alleging that the defendants unlawfully deducted employees' "regular pay" from their future earned commissions and bonuses in violation of G. L. c. 151, § 1, and G. L. c. 149, §§ 148 and 150. Hanley, who alleged he had worked for the defendants' business from approximately 2015 to 2020, also brought the action on behalf of a proposed class of employees who had worked for the defendants for all or part of the three-year period preceding the filing of the complaint. On behalf of himself and the class, he sought to recover damages under G. L. c. 149, § 150. At the time of filing, Hanley submitted a statement of damages pursuant to G. L. c. 218, § 19A, estimating that single damages for the claim brought on

his own behalf would amount to "more than $25,000," but were reasonably likely to be "less than $50,000."

On September 7, 2022, the plaintiffs filed an ex parte motion seeking additional time to serve the defendants. The following day, they filed an amended complaint, adding Christopher Trombley as a second named plaintiff and class representative. Alleging that Trombley had worked for the defendants from 2008 through 2022, the complaint brought the same claims on behalf of Trombley as those set out in Hanley's initial complaint. The plaintiffs then served the amended complaint following the District Court's grant of their motion for additional time to do so.

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