Chapter 93A Claims Between Businesses
Massachusetts General Laws Chapter 93A prohibits unfair methods of competition and unfair or deceptive acts or practices in trade or commerce. It is one of the most powerful tools in Massachusetts business litigation, and one of the most frequently asserted. Whether you are bringing a claim or defending one, understanding how it works can change the value of a case.
Section 11: Business-to-Business Claims
Section 9 of Chapter 93A protects consumers, while Section 11 allows a person engaged in trade or commerce to bring a claim against another business. Unlike consumer claims, Section 11 claims do not require a pre-suit demand letter, but the conduct generally must have occurred primarily and substantially in Massachusetts.
What Counts as Unfair or Deceptive?
There is no fixed list. Courts look at whether the conduct falls within established concepts of unfairness, is immoral, unethical, oppressive, or unscrupulous, or causes substantial injury. Common examples in business disputes include:
- Using a breach of contract to extract concessions the other side did not agree to
- Misrepresenting facts to induce a deal
- Misappropriating confidential information or customers
- Bad-faith withholding of payment
- Deceptive conduct in the sale of a business
A simple breach of contract, without more, is generally not enough.
Remedies
A successful Chapter 93A claimant may recover actual damages, and if the violation was willful or knowing, up to three times actual damages, but not less than double. A prevailing claimant may also recover reasonable attorney’s fees and costs, which can significantly shift the economics of a dispute.
Defending a 93A Claim
Chapter 93A counts are often added to ordinary contract disputes to increase leverage. Early analysis of whether the conduct was really unfair, whether it occurred primarily in Massachusetts, and whether damages are supported can narrow or defeat the claim.
Consumer 93A Claims
Individuals with consumer claims, including tenants, generally must send a written demand letter at least 30 days before filing suit. We handle consumer demand letters and responses as well.
Learn more about our business law practice.
Talk to a Lawyer Today
Call Muggeo & Associates at (978) 741-1177, available 24 hours a day, 7 days a week, or send us a message. Our office is at 133 Washington Street in downtown Salem.
This page provides general information only and is not legal advice. Laws and deadlines change and depend on the facts of each case. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.