Snaxin, Inc. v. Underground Storage Tank Petroleum Cleanup Fund Administrative Review Board
Snaxin, Inc. v. Underground Storage Tank Petroleum Cleanup Fund Administrative Review Board
Opinion of the Court
The plaintiff in each action before us on appeal (hereinafter “the plaintiffs”) sought financial assistance, in accordance with the statutory scheme set out by G. L. c. 21J, from the Underground Storage Tank Petroleum Cleanup Fund (Fund) for help with environmental cleanup and replacement of
General Laws c. 21J, § 8(5), requires the Board to render a decision within forty-five days following its “receipt” of submitted reimbursement claims. The Board, however, had adopted a regulation that called for a decision within forty-five days of the “presentation” of the claims to the Board. 503 Code Mass. Regs. § 2.10(c) (1994). Since the Board could determine when “presentation” would occur, the regulation gave the Board a great deal of discretion as to when it would render a decision, effectively tolling the forty-five day requirement of G. L. c. 21J, § 8(5), at its discretion. The Superior Court judge concluded that the conflict between the statute and the regulation rendered the latter ultra vires and therefore void. However, referring to the Commonwealth’s sovereign immunity, the judge denied the plaintiffs’ requests for interest. On appeal, the sole issue is whether the plaintiffs are due interest on the delayed payment of their claims.
It is not disputed that G. L. c. 21J does not contain any express authorization for the payment of interest in cases of
In arguing that the Commonwealth should pay interest for the delays in payment, the plaintiffs cite cases in which the Commonwealth was found liable for interest payments due to contractual obhgations. See Massachusetts General Hosp. v. Commissioner of Pub. Welfare, 359 Mass. 206, 209 (1971); Perkins Sch. for the Blind v. Rate Setting Commn., 383 Mass. 825, 831 (1981); Addison Gilbert Hosp. v. Rate Setting Commn., 397 Mass. 56, 59-60 (1986). Since a contractual relationship is absent here, those cases do not control our analysis.
There have been other circumstances, however, in which the Commonwealth has been held to owe interest on a financial obligation to another party. For instance, the Commonwealth has been held hable for interest payments in relation to eminent domain actions. See North Shore Realty Trust v. Commonwealth, 434 Mass. 109, 115 (2001). See also Roberts v. Worcester Redev. Authy., 53 Mass. App. Ct. 454, 462-463 (2001). Such interest obligation is based on constitutional requirements and is specifically authorized by statute. See Woodworth v. Commonwealth, 353 Mass. 229, 230-231 (1967). See also North Shore Realty Trust v. Commonwealth, supra at 115, citing G. L. c. 79, § 37. There is neither a constitutional requirement nor any specific statutory authorization for payment of interest upon reimbursements made pursuant to G. L. c. 21J. Consequently, the cases involving interest payments in eminent domain cases do not influence our decision.
In Gaulin v. Commissioner of Pub. Welfare, 23 Mass. App. Ct. 744, 747-748, S.C., 401 Mass. 1001 (1987), this court ruled that plaintiffs who are successful in asserting a claim for attorney’s fees against a State official under a Federal statute should be awarded interest on the delayed payment of such fees. The decision cited pohcy factors in the Federal statutory scheme addressing the protection of civil rights as requiring the payment of interest of these delayed payments. Id. at 749. No such statutory scheme and pohcy considerations are involved here.
In Gurley v. Commonwealth, 363 Mass. 595, 599-600 (1973), the Supreme Judicial Court stated that express provisions for the payment of interest by the Commonwealth in certain statutes “suggest that the Legislature will authorize such payments expressly when they are intended” and that a statute’s “silence on the question of interest payments indicates a legislative intent not to grant them.” This court reached a similar result in Hollstein v. Contributory Retirement Appeal Bd., 47 Mass. App. Ct. 109, 111 (1999), in which we cited a lack of explicit statutory authorization in rejecting the plaintiff’s claim of interest on excessive pension deductions which were returned to plan members. Referring to statutory provisions that called for the payment of interest in certain limited circumstances, we observed, “[t]he specificity of these provisions reflects Legislative disapproval of payments of interest by implication.” Id. at 112. See Broadhurst v. Director of the Div. of Employment Security, 373 Mass. 720, 727 (1977) (“legislative silence as to interest [in a statute] which otherwise contains a rather detailed consideration of proceedings and remedy, indicates a legislative intent” that interest payments are not payable). See also Boston v. Massachusetts Commn. Against Discrimination, 39 Mass. App. Ct. 234, 245 (1995) (“interest does not, in any event, lie against the Commonwealth or its instrumentalities [as here] in the absence of express statutory authorization”).
In Onofrio v. Department of Mental Health, 411 Mass. 657, 659 (1992), the Supreme Judicial Court ruled that a plaintiff asserting a claim under the Massachusetts Tort Claims Act,
The plaintiffs allege that substantial delays in payments by the Board frustrate the fundamental purpose of the statute, which is to expedite environmental cleanup efforts by partially reimbursing costs and expenses incurred by claimants. Delay, they contend, will frustrate the purpose of the statute, since claimants would not be able to be reimbursed expeditiously.
There may be merit to the plaintiffs’ assertion that the statutory language can be interpreted as indicating a legislative desire for swift reimbursement of claims.
The statute makes it clear that any disbursements from the Fund are subject to appropriation. G. L. c. 21J, § 4. See Milton v. Commonwealth, 416 Mass. 471, 473-474 (1993). The statute anticipates that insufficient funds may result in denial of claims or other actions and strictly limits the remedies available for
Finally, the statute explicitly acknowledges the possibility of “failure or delay of reimbursement” in a section which, rather than providing remedies for such failure or delay, actually limits the remedies available due to such failure or delay. G. L. c. 21J, § 3. The statutory language indicates that the Legislature was cognizant of the possibility of delay and chose not to create a remedy such as the payment of interest. See Gurley v. Commonwealth, 363 Mass. at 600 (“the Legislature will authorize [interest] payments expressly when they are intended [and] silence on the question of interest payments indicates a legislative intent not to grant them”).
The statute anticipates the possibility that the reimbursement of even the principal amount may not be available due to insufficient funds, and contains no express provision for the payment of interest due to delay in reimbursement. Since these reimbursements are neither contractual obligations nor constitutional requirements, and there are no other special circumstances that would suggest interest payments should be made, we conclude that the statute does not entitle the plaintiffs to be paid interest.
Judgments affirmed.
The provision calling for a decision within forty-five days of receipt of the claim can be viewed as indicating an intent to mandate a swift procedure. G. L. c. 21J, § 8(5). The same section indicates that approved claims should result in a request for immediate payment being forwarded to the secretary of administration and finance.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.