Refuse & Environmental Systems, Inc. v. Industrial Services of America

732 F. Supp. 1209, 1990 U.S. Dist. LEXIS 2579, 1990 WL 25330
District Court, D. Massachusetts·Decided March 9, 1990·No. Civ. A. 85-0375-F·Published·Cited by 9 cases

Opinion

MEMORANDUM AND ORDER

FREEDMAN, Chief Judge.

I. INTRODUCTION

Plaintiff Richard V. Bisesti (“Bisesti”) and his upstart company, plaintiff Refuse & Environmental Systems, Inc. (“R & E”), filed suit against the named defendants on September 9,1985. In a lengthy complaint, plaintiffs sought relief on six counts, including violations of the federal antitrust laws, the Massachusetts Consumers Protection Act, and Massachusetts tort law. 1 After trial, a jury awarded damages to plaintiffs on four of the. five counts presented for jury consideration. The jury awarded plaintiff R & E $43,050.00 against defendant Industrial Services of America (“Industrial Services” or “CWS”) 2 on Count I for violation of section 4 of the Clayton Act, 15 U.S.C. § 15. The jury also found Industrial Services liable to R & E on Count II for interference with R & E’s prospective economic gain and contractual relations. The jury awarded $151,990.00 for this wrong. On Count III, a claim for slander, the jury found defendants Joseph Freedman and Harry Kletter liable to plaintiff Bisesti for $100,000 each. On Count V, the jury awarded plaintiffs a total of $6,000.00 for abuse of process, payable in equal parts by defendants Freedman and Kletter. See Special Interrogatories (March 30, 1989). 3

A sixth count, brought under the Consumers Protection Act, Mass. Gen. Laws ch. 93A, § 2, was decided by the Court after the jury rendered its verdicts. The Court found that defendants Freedman and Kletter were liable for unfair and deceptive acts within the meaning of section 2. Accordingly, the Court ordered Freedman and Kletter to pay $10,000.00 each for the chapter 93A violations.

Both sides have filed post-trial motions. A total of five motions have been filed, and these are presently before the Court. (1) Plaintiff R & E has filed a motion for amended findings. R & E asks this Court to treble the damages awarded under Count I pursuant to section 4 of the Clayton Act, 15 U.S.C. § 15. R & E also requests that the damages awarded under Count II and Count V be trebled pursuant to chapter 93A. (2) R & E has filed a motion for an award of attorney’s fees pursuant to both the Clayton Act and chapter 93A. (3) Plaintiffs have moved for an order requiring that defendants bear the entire cost of the trial transcript. 4 Defendants oppose these motions.

Like plaintiffs, defendants seek to modify the verdict in a direction favorable to them. (4) Defendant Freedman has filed a motion for relief from the verdict as to Count III. (5) Defendants have filed a motion for a declaration that damages will be awarded in the alternative, that is, that R & E must choose between Count I damages and Count II damages. Plaintiffs oppose defendants’ motions. Now, with the *1213 assistance of the voluminous transcript and a plethora of memoranda from the parties, the Court must render its decision on these five motions.

II. DISCUSSION

A. Plaintiff R & E’s Motion for Treble Damages Pursuant to 15 U.S.C. § 15

The jury returned a verdict against defendant Industrial Services on Count I, finding that Industrial Services was liable for antitrust violations in the sum of $43,-050.00

Under section 4 of the Clayton Act, 15 U.S.C. § 15, “any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws may sue therefor in [the] district court of the United States ... and shall recover threefold the damages by him sustained, and the cost of suit, including a reasonable attorney’s fee.” The statutory language is clear. This Court, operating under a mandate from Congress must treble damages awarded for the antitrust violation. Such damages provide for private relief, and serve the “high purpose of enforcing antitrust laws.” Zenith Corp. v. Hazeltine, 395 U.S. 100, 131, 89 S.Ct. 1562, 1580, 23 L.Ed.2d 129 (1969).

Defendant Industrial Services is hereby ordered to pay, pursuant to 15 U.S.C. § 15, three times the damages awarded by the jury on Count I, that is, $129,150.00. 5

B. Plaintiff R & E’s Motion for Multiple Damages Under Massachusetts General Laws Chapter 93A

The legislature enacted chapter 93A to provide a remedy for those persons injured by unfair and deceptive practices. Heller v. Silverbranch Construction Corp., 376 Mass. 621, 382 N.E.2d 1065, 1069 (1978). “Section 2, the substantive heart of c. 93A, makes ‘unfair and deceptive practices in the conduct of any trade or commerce’ unlawful.” Id. A plaintiff need not prove common law or statutory causes of action as a basis for chapter 93A recovery. Commonwealth v. DeCotis, 366 Mass. 234, 316 N.E.2d 748, 754 (1974). Instead, chapter 93A “established] new procedural devices to aid consumers and others ... [and] also createfs] new substantive rights by making conduct unlawful which was not unlawful under the common law or any prior statute.” Id. 316 N.E.2d at 755 n. 8.

Damages awarded under chapter 93A are “in addition to, and not an alternative to, traditional tort and contract remedies.” Linthicum v. Archambault, 379 Mass. 381, 398 N.E.2d 482, 485 (1979). A plaintiff may collect damages for both a common law or statutory cause of action, and a chapter 93A violation where a separate basis for recovery exists for each. It is “error for the trial judge to refuse relief under chapter 93A because it was ‘unnecessary to secure adequate relief for said plaintiff or because the plaintiff would thereby find herself ‘in a better position than she would have been in had the defendant fulfilled his contractual obligations.’ ” Linthicum, 398 N.E.2d at 485.

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Refuse & Environmental Systems, Inc. v. Industrial Services of America, 732 F. Supp. 1209, 1990 U.S. Dist. LEXIS 2579, 1990 WL 25330 (D. Mass. 1990).

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