BLS Blog

Where a party prevails on a Chapter 93A claim, the party should submit a fee application that segregates the fees for the work necessary to prevail on the Chapter 93A claim. That’s the key takeaway from Commonwealth Insurance Partners, LLC, et al. v. Patricia Boucher, et al., a case in which the plaintiffs asserted claims for breach of contract, violation of fiduciary duties, and violation of Chapter 93A.

After prevailing on their claims at trial, the plaintiffs filed an application for attorneys’ fees under Chapter 93A. Judge Ricciuti, sitting in the Business Litigation Session of the Massachusetts Superior Court, found that “the result obtained by Plaintiffs’ counsel under Chapter 93A was substantial and the successful result was achieved by experienced, reputable and capable attorneys.” He ruled that the plaintiffs’ lawyers “merit[ed] an appropriate legal fee.”

Judge Ricciuti, sitting in the Massachusetts Business Litigation Session, rejected a shareholder’s claim that she could shed herself of the fiduciary duty she owed to a close corporation by renouncing her shares in the corporation.

In Empire Dealer Services, Inc., et al. v. Guerin, et al., Empire Dealer Services, a close corporation, and John Kane, Empire’s sole director, president, treasurer, and secretary, sued Guerin, a former vice president and a minority shareholder of Empire, and Drive Dealer Performance, Guerin’s new company. The plaintiffs sought an injunction to stop Guerin from pursuing the new venture, claiming that Guerin was violating her fiduciary duties owed to Empire and Kane.