Commonwealth v. Chatham Development Co.
Commonwealth v. Chatham Development Co.
Opinion of the Court
This is an appeal by Chatham Development Co., Inc. (Chatham), which owns and manages a large apartment complex in Auburndale, from a permanent injunction entered on March 18, 1997, by a Superior Court judge. After consideration of the parties’ submissions under Mass.R.Civ.P. 56, 365 Mass. 824 (1974), the judge enjoined Chatham from including in its leases a provision that requires tenants to pay a
Chatham has utilized the Greater Boston Real Estate Board’s “Standard Form Agreement Lease” for all tenants, including those of low to moderate income, who rent residential units within the eight buildings of the “Woodland Park” apartment complex. Appended to the lease form is a typewritten series of “Rules and Regulations” prepared by Chatham. The first paragraph of the “Rules and Regulations” contains the provisions requiring tenants to pay a constable fee if the rent payment is late. The Commonwealth’s case against Chatham is premised on the theory that the constable fee provision is unfair and deceptive under G. L. c. 93A, § 2(a), in that it transgresses G. L. c. 186, § 15B(1)(c),
The provisions of G. L. c. 93A do not contain a definition of the word “unfair.” They leave the possible existence of such to be determined on a case-by-case basis. See Commonwealth v.
Nor do we find error in the judge’s conclusion that Chatham jumped the gun by imposing a late fee for payments not yet thirty days overdue, thereby committing a deceptive act within the meaning of G. L. c. 93A, § 2(a). General Laws c. 186, §§ 11 and 12, permit tenants the opportunity to cure their nonpayment and continue their tenancies.
Neither of Chatham’s remaining claims requires lengthy discussion. There is no force to the argument that the judge mistakenly assessed $2,000 as a civil penalty. The portion of G. L. c. 93A, § 4, as inserted by St. 1985, c. 468, upon which the Commonwealth relies provides: “If the court finds that a person has employed any method, act or practice which he knew or should have known to be in violation of said section two, the court may require such person to pay to the commonwealth a civil penalty of not more than five thousand dollars for each such violation and also may require . . . reasonable attorneys’ fees.” Chatham contends that civil penalties under G. L. c. 93A, § 4, should not be imposed in a case of “first impression” and where there is no allegation that any tenant was actually harmed by its attempt to impose a constable fee under the lease. Chatham argues that its corporate behavior, in this instance, did not involve the kind of blatant, intentional violation of a judgment that invited civil penalties in Commonwealth v. Fall River Motor Sales, Inc., 409 Mass. 302, 303-305 (1991) (advertisement of vehicles at “6.9% over factory invoice” after consent judgment enjoined use of “invoice price” advertising).
An action brought by the Attorney General under G. L. c. 93A, § 4, is comparable to a class action. The Supreme Judicial Court has intimated in an earlier case that the Attorney General-has the power to bring suit not only on behalf of those
In awarding $8,000 in legal fees against Chatham, the judge considered the factors set forth in Commonwealth v. Fall River Motor Sales, Inc., 409 Mass. at 311, quoting from United States v. Reader’s Digest Assn., 662 F.2d 955, 967 (3d Cir. 1981), cert. denied, 455 U.S. 908 (1982). Although the affidavit of the assistant attorney general is less informative than one might wish, it provided an acceptable basis for the judge to conclude that the amount claimed for legal fees was warranted.
Judgment affirmed.
Paragraph 1 of the “Rules and Regulations” attached to the lease form reads as follows:
“IMPORTANT — ALL TENANTS — Please be aware that, according to your Lease or Tenancy at Will Agreement, the rent is due and payable in our office on or before the first of every month. Our office will not be sending out reminder notices for non-payment of rent. If the rent is not in the office on the first of the month, please be aware that you are subject to service of a Constable Notice as of the 2nd of the month. This is the legal procedure for initiation of eviction proceedings. If the unit in which you live has to be served with this notice, the cost is currently $25.00 (subject to change without notice). Again, do not expect to be notified that your rent has not been received by our office before we send out the Constable notices. Thank you for your cooperation in this matter.”
General Laws c. 186, § 15B(1)(c), as amended by St. 1978, c. 553, § 2, declares: “No lease or other rental agreement shall impose any interest or penalty for failure to pay rent until thirty days after such rent shall have been due.”
Title 940 Code Mass. Regs. § 3.17(6) (1993) provides: “It shall be an unfair and deceptive practice for an owner to: (a) Impose any interest or penalty for late payment o[f] rent unless such payment is 30 days overdue "
Section 11 reads, in pertinent part: “Upon the neglect or refusal to pay the rent due under a written lease, fourteen days’ notice to quit, given in writing by the landlord to the tenant, shall be sufficient to determine the lease, unless the tenant, on or before the day the answer is due, in an action by the landlord to recover possession of the premises, pays or tenders to the landlord or to his attorney all rent then due, with interest and costs of suit.”
Although the statute has been amended since 1884, the requirement of fourteen days’ notice before process may be brought appears in both the incarnation of the statute that was before the Hodgkins court and that before us today.
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