A quarterly summary and brief analysis of significant decisions issued by the Massachusetts Superior Court Business Litigation Session. A service of O’Connor, Carnathan and Mack LLC.
 

March
2008

Volume 4
Number 3
Page
5

 

Summarizing opinions from July 1, 2007 through
Sept. 30, 2007

 

 


 
 


 

 

 

 

 

     

O  T  H  E  R      D  E  C  I  S  I  O  N  S  :

Constantine v. Lawnicki, 2007 WL 2429721 (Mass. Super.)
(Aug. 13, 2007) (van Gestel, J.).

     

In this brief opinion, the Judge van Gestel applied the relatively new Business Corporations Act, G.L. c. 156D, in a dispute between the two owners and directors of a closely-held corporation. The parties appeared to be deadlocked in the management of corporate affairs and irreparable injury to the corporation was clearly threatened; dissolution therefore

 

 


 

 

seemed warranted. However, the court took notice of the comments to the Act, which cautioned that dissolution should rarely be ordered in light of potential harm to other constituencies. In deference to these comments, the court deferred final action on plaintiff's petition to dissolve for a period of one month so as to give the parties further time “to attempt a less draconian resolution.” Id. at *3.

 
 

 

 

 


 

 

 
     
     
 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 




 


 

Kelley v. CVS Pharmacy, Inc., 2007 WL 2781163 (Mass. Super.)
(Aug. 24, 2007) (Gants, J.).

     

Plaintiff challenged a program under which Merck paid CVS to mail letters to CVS customers who had been prescribed certain medications. The letters urged the patients to consult with their doctors about the possibility of obtaining additional prescriptions for related health conditions. Plaintiff brought suit, alleging that the defendants committed violations of the right to privacy, breached the duty of confidentiality, misappropriated information, and violated G.L. c. 93A by engaging in the mailing program.

On cross motions for summary judgment, and beginning with the privacy claims, the court held that plaintiff could not demonstrate that he had suffered a substantial or serious interference with his privacy. In so holding, the court acknowledged that a different judge in the case had previously found the privacy question to be an appropriate one for the jury. However, Judge Gants “respectfully disagree[d],” and stated that he would overrule a jury verdict on this question in any event – for “no reasonable jury could find in plaintiff’s favor based on this record.” Id. at *4. Turning to the breach of duty of confidentiality claims, the court found “that it would constitute a breach of the duty that CVS owed to its pharmacy customers to disclose their prescription information without their consent.” Id. at *5. But in the absence of evidence that CVS had disclosed information about the specific medication prescribed to plaintiff, the breach of confidentiality claims could not stand: “disclosure of the mere fact that an individual has been prescribed medication

 

 

 

 

 



 

 

 

 

 

 

 

 


 

 

is not the stuff of a cause of action.” Id. at *6. Nor could plaintiff’s misappropriation claim withstand a motion for summary judgment – for there was “no evidence that CVS sought to take advantage of Kelley’s reputation, prestige, or other value association with him, for purposes of publicity” in connection with the program. Id.

The court agreed with the plaintiff that defendants violated Chapter 93A. Although the letter sent to plaintiff did not contain false information, it “did conceal that CVS received a net profit from Merck for each Letter that it sent.” Id. at *7. “Without such information, the patient, in view of the pharmacist’s duty of care, reasonably may assume that the advice was provided solely out of concern for the health and best interest of the patient. With such information, the patient reasonably may question whether the advice was intended to serve the health and best interest of the patient or the financial health and best interest of the pharmacy. This information is so important to the appropriate evaluation of the advice that it is fundamentally unfair to the patient for the pharmacy to deprive him of it.” Id. at *9. With respect to damages, there was no evidence that plaintiff suffered any loss of money or property or significant emotional distress as a result of receiving the mailing. The court therefore ordered damages in the form of disgorgement of profits received by CVS in connection with the mailing – in this case, the statutory minimum of $25, plus reasonable attorney’s fees.

 

 

 

 

 

 

 


 

 

 

 

 




 

 

 


 

 
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