what constitutes a 93a violation by an attorney

by Maude Cronin 9 min read

The simple answer is that because clients are “consumers” of the lawyer’s trade or professional work, the 93A law applies to lawyers. It is an additional “count” in a Complaint for legal malpractice. A successful 93A case can result in double or treble damages plus attorney fees.

Full Answer

Who can be sued under Chapter 93A?

The Supreme Judicial Court has held that attorneys can be held accountable under Massachusetts General Laws, Chapter 93A, and that the scope can be expanded to include negligent as well as intentional misrepresentations. It has been held that Chapter 93A, Section 2 includes the practice of law as “trade or commerce” which prohibits “unfair methods of …

What is section 93A of the Consumer Protection Act?

 · Do Violations of the Building Code Violate Chapter 93A? The Massachusetts Consumer Protection Act, General Laws Chapter 93A, § 2, prohibits “unfair or deceptive acts or practices in the conduct of trade or commerce.”. Since Chapter 93A was enacted in 1967, the Commonwealth’s courts have continued to define the scope and substance of the conduct that …

What is a 93A claim and why is it important?

 · 3. 93A Standard and Misrepresentation Although many cases hold that a statement that has the “capacity to mislead” is a 93A violation, recent authority holds that test cannot be right because it is...

What is Chapter 93A Section 9 of the California Code?

The Regulation of Business Practices for Consumer Protection Act, commonly referred to by its statutory chapter number, “Chapter 93A,” is a frequently utilized statute that provides individual consumers and businesses with a right to bring legal action and recover damages if they are harmed by an unfair business practice. Under the statute, “unfair or deceptive acts or practices” …

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What is the statute of limitations for actions brought under mass GLC 93A?

Statute of Limitations The statute of limitations for Chapter 93A claims is four (4) years from the date of the alleged injury or deceptive act which gave rise to the lawsuit. If a plaintiff files their claims after the limitations date has run the case against your business can be dismissed.

What is 93A?

93A, is a powerful legal tool that allows the Attorney General and consumers to take action against unfair or deceptive conduct in the marketplace. The Consumer Protection Act allows lawsuits against unfair or deceptive acts or practices taken against consumers.

What is Chapter 93A in Massachusetts?

The Consumer Protection Act (M.G.L. Chapter 93A ) protects people from unfair and misleading business actions. It gives buyers the right to sue in court and get back money they lost. The law also allows businesses to sue other businesses.

How do you respond to a 93A letter?

Some helpful tips on how to handle the receipt of a 93A demand letter:Do Not Assume the Claim is Valid. ... Evaluate the Potential Damages. ... The "Reasonable" Settlement Offer. ... Keep All Evidence When You Receive the Letter.

How do I file a 93A in Massachusetts?

Filing a Chapter 93A Complaint in MassachusettsBe sent to the business at least thirty (30) days prior to the filing of an actual lawsuit;State that the claimant is a "consumer" - someone who engages in commerce for primarily personal, family, or household purposes;Identify the claimant's full name and address;More items...

How are consumers protected?

Consumer Protection Act is one of the main laws that provide protection to consumers in India. The Act was introduced in the year 1986 and then amended in the year 2002 through the Consumer Protection Amendment Act, 2002. In this article, we look at the protection afforded to the consumers through the Act.

How do you respond to a demand letter?

How to Respond to a Demand LetterEvaluate the letter. The first step after receiving a letter is to carefully read it and evaluate its merits. ... Determine its intent. People send demand letters for all sorts of reasons. ... Calculate the claims. ... Is a lawyer needed? ... Respond within allotted time frame.

How do I write a demand payment letter?

How to write a demand letterEstablish facts. Don't assume everyone knows the facts. ... Refer to evidence. If there's evidence (like a contract), you don't need to include it, but you should refer to it. ... Make a demand. Be specific as to what you want. ... Set a deadline and establish method of payment. ... Offer a consequence.

Do companies respond to demand letters?

At some point after you send your demand letter, the employer, through its attorney, will respond.

What is Chapter 93A?

The simple answer is that because clients are “consumers” of the lawyer’s trade or professional work, the 93A law applies to lawyers. It is an additional “count” in a Complaint for legal malpractice. A successful 93A case can result in double or treble damages plus attorney fees.

What is a 93A letter?

93A requirements are outlined in of the Consumer Protection Statute, Section 9. The basics are simple, the application of the law, however, can be complex. To initiate a 93A case, the client must send a written demand letter to the attorney specifying and “reasonably describing the unfair or deceptive act or practice relied upon and the injury suffered.” You will need an attorney to draft and send the 93A letter as they are complicated and must stand up to Court scrutiny if you later want the right to multiple damages and attorney fees.

Can an attorney be held accountable for misrepresentation in Massachusetts?

The Supreme Judicial Court has held that attorneys can be held accountable under Massachusetts General Laws, Chapter 93A, and that the scope can be expanded to include negligent as well as intentional misrepresentations. It has been held that Chapter 93A, Section 2 includes the practice of law as “trade or commerce” which prohibits “unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” A lawyer’s liability for multiple damages and attorney fees may generally be found under Chapter 93A, section 9.

Does malpractice insurance cover 93A?

To add a layer of confusion, the attorney’s malpractice insurance carrier may or may not be responsible to the client/consumer under 93A and Chapter 176D as well. This is because, once you can show clear liability and collectability, the attorney’s malpractice insurance company is obligated to make a reasonable offer of settlement. While the insurance policy may not cover 93A damages (multiple damages and attorney fees), it would obligate the company to take the claim seriously and focus on resolution to prevent their insured from facing multiple damages. In many cases, a well drafted and properly served 93A letter will result in the insurance company asking to negotiate or mediate prior to even responding, so that they will not be subject to failing to make an unfair offer.

Why is 93A so challenging?

It can be challenging to apply 93A because it is vague and has a low threshold of proof necessary to establish liability. Additionally, 93A is extremely complex. It has many inclusions, exclusions, permutations and penumbras, and there are tens of thousands of decided cases creating precedent dealing with the law.

What is the 93A standard?

The 93A standard for trade dress infringement is the same as the Federal trade dress infringement standard. – Bern Unlimited v. The Burton Corp. (D. Mass. 2015)

What is Chapter 93A in Massachusetts?

Nearly all business disputes in Massachusetts are governed by Chapter 93A. The winning plaintiff under Chapter 93A is entitled to an automatic award of its attorney's fees, and may be awarded up to three times its actual damages. Neither of these enhanced damages is possible under regular Massachusetts law.

What is the power of appellate court?

An appellate court has the power to determine whether a trial court ruling in favor of 93A liability actually falls within the “boundaries” of 93A, as determined by the appellate court, and to overturn the trial court decision if it is outside those boundaries. – Silva v.

What is a distinct injury in a business case?

The plaintiff in a business case must prove a distinct injury due to the unfair or deceptive practice apart from a mere contract breach or tort. – Auto Flat Car Crushers v. Hanover Ins. (Mass. 2014)

Can a negligent misrepresentation be a 93A liability?

A negligent misrepresentation cannot give rise to 93A liability unless it is “extreme” or “egregious.” – Baker v. Goldman Sachs (First Cir. 2014)

Is a 93A violation a 93A violation?

Although many cases hold that a statement that has the “ capacity to mislead” is a 93A violation, recent authority holds that test cannot be right because it is a mere test of causation without regard to whether the representation was in any way culpable. – Baker v.

Why is 93A so challenging?

It can be challenging to apply 93A because it is vague and has a low threshold of proof necessary to establish liability. Additionally, 93A is extremely complex. It has many inclusions, exclusions, permutations and penumbras, and there are tens of thousands of decided cases creating precedent dealing with the law.

What is the 93A standard?

The 93A standard for trade dress infringement is the same as the Federal trade dress infringement standard. – Bern Unlimited v. The Burton Corp. (D. Mass. 2015)

What is Chapter 93A in Massachusetts?

Nearly all business disputes in Massachusetts are governed by Chapter 93A. The winning plaintiff under Chapter 93A is entitled to an automatic award of its attorney's fees, and may be awarded up to three times its actual damages. Neither of these enhanced damages is possible under regular Massachusetts law.

What is the power of appellate court?

An appellate court has the power to determine whether a trial court ruling in favor of 93A liability actually falls within the "boundaries" of 93A, as determined by the appellate court, and to overturn the trial court decision if it is outside those boundaries. – Silva v. Steadfast (Mass. App. 2015)

What is a distinct injury in a business case?

The plaintiff in a business case must prove a distinct injury due to the unfair or deceptive practice apart from a mere contract breach or tort. – Auto Flat Car Crushers v. Hanover Ins. (Mass. 2014).

Can a 93A claim be brought?

Cases holding that a 93A claim cannot be brought include Advanced Micro Devices, Inc. v. Feldstein (D. Mass. 2013). 93A claims against former employees for misappropriation of trade secrets were dismissed as they were within the "intra-enterprise" exception to 93A.

Can a negligent misrepresentation be a 93A liability?

A negligent misrepresentation cannot give rise to 93A liability unless it is "extreme" or "egregious." – Baker v. Goldman Sachs (First Cir. 2014)

What is chapter 93A?

The Regulation of Business Practices for Consumer Protection Act, commonly referred to by its statutory chapter number, “Chapter 93A,” is a frequently utilized statute that provides individual consumers and businesses with a right to bring legal action and recover damages if they are harmed by an unfair business practice. ...

Is pre-litigation fees recoverable under Chapter 93A?

The court agreed that pre-litigation fees are not recoverable under Chapter 93A, stating that it “is aware of no authority that permits the award of fees incurred before the litigation began and that do not bear directly on its preparation.”.

What are the common disputes between businesses that may bring about claims under G.L. 93A for unfair and deceptive trade practices?

Massachusetts General Laws Chapter 93A is known as the “Consumer Protection Act.” It regulates conduct between consumers and businesses under § nine, but also has some of the same powerful remedies for resolving disputes between businesses in § 11. This law prohibits unfair and deceptive trade practices.

Does failure to make payments due under a contract constitute loss of money or property to come under Ch. 93A?

In one federal case, Arthur D. Little, Inc. was faced with a failure of a Korean company to pay bills for services that were rendered over a lengthy period of time.

What is Chapter 93A Section 9?

Chapter 93A, Section 9 provides a right of action to any person, other than one involved in trade or commerce under Section 11, who has been injured by any method, act or practice declared unlawful by Chapter 93A, Section 2 or certain other statutes.

What is 93A in Massachusetts?

Massachusetts General Laws Chapter 93A , § 2 (“Chapter 93A”) states: “Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.”. From that simple statement, numerous acts and practices can serve as the basis for a suit alleging a violation of c. 93A.

What is Section 11 of Chapter 93A?

Chapter 93A, Section 11 provides a right of action to any person engaged in trade or commerce who suffers a loss of money or property from another person’s use, in trade or commerce, of an unfair method of competition or an unfair or deceptive act or practice. Unlike Section 9, Section 11 does not require a demand letter prior to initiating suit, ...

Can a person sue for violating the 93A?

Under the definitions of Chapter 93A, any person involved in trade or commerce, including corporate persons, can sue and be sued for violating the statute . Chapter 93A contains two different regimes for relief, depending on whether a claimant is a consumer, in which case suit is brought under Section 9, or an entity engaged in trade or commerce, ...

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Higher 93A Standard Between Businesses

  • A higher standard applies where both parties are businesses andsophisticated commercial players. – Ora Catering v.Northland Ins. (D. Mass. 2014); Boston Cab v. Uber(D. Mass. 2014)
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Differing Federal Versus State Standards For 93Aliability

  • Massachusetts state courts apply the coercion or leveragingtest, while many Federal courts still apply the"rascality" test or "eyebrow" test. –Ora Catering v. Northland Ins.(D. Mass. 2014) Massachusetts state courts require that a violation of other lawor regulations must still be shown independently to be unfair ordeceptive under 93A. However, Federal courts now hold that aviolat…
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93A Standard and Misrepresentation

  • Although many cases hold that a statement that has the"capacity to mislead" is a 93A violation, recentauthority holds that test cannot be right because it is a mere testof causation without regard to whether the representation was inany way culpable. – Baker v. Goldman Sachs(FirstCir. 2014) A negligent misrepresentation cannot give rise to 93A liab...
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93A Standard and Contract

  • Mere breach of contract alone does not violate 93A. –Baker v. Goldman Sachs(First Cir. 2014). Mere misrepresentations in connection with a breach of contractdo not violate 93A. There will be no 93A liability for a breach ofcontract, even if the breach is accompanied by misrepresentations,if there are no other damages besides those stemming from thebreach of c…
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Intellectual Property and 93A

  • Non-competes and Trade Secrets Non-competes and trade secret cases are mixed on whether adeparting employee can be liable under 93A for violating anon-compete or misappropriating a trade secret, since 93A generallydoes not apply to employer-employee disputes. Cases holding that93A claims can be brought include Sentient Jet v. ApolloJets(D. Mass. 2014), 93A claims ag…
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Class Actions and 93A

  • A class claim must still show proof of causation on a class-widebasis and cannot get around the class-wide causation issue byturning it into a question of the mere amount of individual damagesfor each class member. – Bellerman v. Fitchburg Gas(Mass. 2014) Courts declare that a Massachusetts 93A claim may provide themost consumer friendly vehicle for class actions vers…
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Insurance and 93A

  • The First Circuit has held that an insurer cannot be liableunder 93A for bad faith insurance claim settlement practices unlessthe insurer has engaged in egregious settlement misconductincluding use of non-payment to leverage a reduced settlementamount. – Peabody Essex Museum v. U.S. Fire Ins.(First Cir. 2015)
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Defenses to 93A

  • Non-market Transactions 93A does not apply to "private disputes" – adispute is private where: (i) services are not offered in a publicmarketplace; or (ii) services are not offered in the ordinarycourse of a business. Private transaction defense may apply to transactions amongshareholders or executives of a close corporation. Conclusory Allegations No 93A claim …
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Multiple Damages Under 93A

  • Multiplication Even If Damages Paid Unless a Chapter 11 business plaintiff strictly observes theprovision of 93A for making an offer of settlement with its answer,no later offer, or even outright payment in full, can bar aneventual award of multiple damages against the plaintiff; a laterpayment, even if in full, is only an offset against an award ofmultiple damages. – Auto Flat …
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Choice of Law and Choice of Forum

  • A 93A claim will survive a motion to dismiss asserting that thecause of action did not arise primarily and substantially inMassachusetts where it alleges that the place of reliance on the93A conduct and the place of injury or loss were both inMassachusetts, that is, the plaintiff is located in Massachusetts.– E.G. Conway v. Licata(D. Mass. 2015) However, where the 93A claim allege…
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