Civil Litigants Beware: Successful Abuse of Process Claims Can Create G.L. c. 93A Liability

A recent Superior Court case, 477 Harrison Ave, LLC v. Jace Boston, LLC et al should put any party defending against an abuse of process claim on notice. In that case, the Court held that where a jury found the defendants liable for $5,801,500 for abuse of process, the damages should be doubled under G.L. c. 93A due to the defendants’ willful conduct. This ruling should be carefully considered by commercial litigants defending abuse of process claims.

As a general matter, parties bringing abuse of process claims must prove that (1) a lawful or legal process was used against them by another person or entity; (2) for an ulterior or illegitimate purpose; (3) resulting in damage to the party seeking relief.

In the Jace case, the plaintiff brought an abuse of process claim against defendants Jace, and Arthur Leon. The claim was that both defendants engaged in a multi-year scheme to interfere with and sabotage the plaintiff’s real estate development project through zoning board challenges and a criminal complaint, so that the defendants’ project on Washington Street could be completed first. The jury found that the defendants’ zoning challenges and criminal complaint regarding the plaintiff’s real estate development project were illegitimate and an abuse of process. The jury did not try the Plaintiff’s G.L. 93A claim.

Following the verdict, the Court reviewed the plaintiff’s 93A claim. It held that the defendants were engaged in commerce, as they were in the business of commercial real estate development. Further, the Court found that an abuse of process claim may constitute a G.L. c. 93A violation. The Court held that the defendants were clearly motivated by improper motives to sabotage the plaintiff’s proposed development project. The court held that even though the plaintiff and defendants were not engaged in commerce with one another, their actions in this lawsuit clearly evidenced commerce, as all parties were engaged in commercial real estate.

The verdict and subsequent ruling by the Court should put any commercial parties accused of abuse of process on high alert. As the Court held, even if the parties to a lawsuit are not engaged in trade or commerce with one another, so long as the conduct at issue is commercial, an abuse of process claim will create G.L. c. 93A exposure if the abuse of process claim prevails at trial.

When reviewing abuse of process claims, commercial parties would be wise to consider settling any claims in which they might have exposure. Some important questions include the purpose of the proceedings that gave rise to the abuse of process claim. Was lawful process used only to interfere with or harm a competitor? Or was there a legitimate business or legal basis to the process used? If the answer is the former, settlement should be immediately considered to avoid G.L. c. 93A exposure.