Apple D'Or Tree, Inc. v. Webster-Dudley Sand & Gravel, Inc.

24 Mass. L. Rptr. 49
CourtMassachusetts Superior Court
DecidedMay 16, 2008
DocketNo. 070884
StatusPublished

This text of 24 Mass. L. Rptr. 49 (Apple D'Or Tree, Inc. v. Webster-Dudley Sand & Gravel, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Apple D'Or Tree, Inc. v. Webster-Dudley Sand & Gravel, Inc., 24 Mass. L. Rptr. 49 (Mass. Ct. App. 2008).

Opinion

Lu, John T., J.

INTRODUCTION

Plaintiff, Apple D’Or Tree, Inc. (Apple D’Or), a commercial lessee of land in Webster, Massachusetts, brought this action against the lessor defendant, Webster-Dudley Sand & Gravel, Inc. (Webster-Dudley). Apple D’Or alleges that Webster-Dudley, without authorization, converted equipment and materials belonging to it, engaged in unfair and deceptive practices, and breached the lease by failing to honor Apple D’Or’s option to purchase the leased land.

After Apple D’Or filed its complaint, Webster-Dudley brought a summary process action against Apple D’Or in the Dudley District Court, to recover possession of the land and rent owed under the lease agreement. The District Court ordered Webster-Dudley’s summary process complaint consolidated with this case. Webster-Dudley now moves for partial summary judgment on its summary process complaint.2

Finding that there is no issue of material fact as to whether Apple D’Or was justified in withholding rent payments under the commercial lease, the court allows Webster-Dudley’s motion for partial summary judgment. •

BACKGROUND

On March 31, 2006, in order to undertake stump grinding operations, Apple D’Or entered into a lease with Webster-Dudley to rent ten acres of land in Webster, Massachusetts.3 The lease term was for twenty years and the $50,000 rent was payable annually, on April 1st. The lease also provided that Apple D’Or would lease one bay in Webster-Dudley’s garage for $10,000 per year. In addition, the lease contained an option for Apple D’Or to purchase the property for one million dollars.

Apple D’Or’s stump grinding operation was noisy and neighbors complained to the Town of Webster. The Town ordered Apple D’Or to cease stump grinding activities and brought an action in the Land Court to enforce its order. On July 27, 2007, the Town of Webster and Apple D’Or entered into an agreement for judgment, which permanently enjoined Apple D’Or from tree stump grinding without the Town’s permission.

On March 19, 2007, Apple D’Or exercised its option to purchase the ten acres from Webster-Dudley for one million dollars. Webster-Dudley, however, on March 22, 2007, refused to proceed with the sale claiming that Apple D’Or had breached its rental obligations by failing to pay rent.

Apple D’Or paid Webster-Dudley $50,000 on April 1,2006 for land rent in 2006.4 Apple D’Or has not paid the $50,000 for the land rent or the $10,000 garage rent for 2007.

DISCUSSION

Webster-Dudley argues that it is entitled to summary judgment on its summary process complaint because Apple D’Or inexcusably failed to pay rent due under the lease agreement and it committed waste on the property. According to Webster-Dudley, the doctrine of dependent covenants does not operate to allow Apple D’Or to withhold rent due under a commercial lease. In response, Apple D’Or contends that it did not [50]*50commit waste on the property and further, it was excused from paying rent in 2007 due to Webster - Dudley’s wrongful conduct in refusing to honor the option to purchase.

I. Standard of Review

Summary judgment will be granted where there are no genuine issues of material fact and where the moving party is entitled to judgment as a matter of law. Mass.R.Civ.P. 56(c); Cassesso v. Comm'r of Corr., 390 Mass. 419, 422 (1983). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue, and that the summary judgment record entitles the moving party to judgment as a matter of law. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). The moving party may satisfy this burden either by submitting affirmative evidence that negates an essential element of the opposing party’s case or by demonstrating that the opposing party has no reasonable expectation of proving an essential element of his case at trial. Flesner v. Technical Commc’ns Corp., 410 Mass. 805, 809 (1991); Kourouvacilis v. Gen. Motors Corp., 410 Mass. 706, 716 (1991). The court will interpret all inferences in the light most favorable to the nonmoving party. Parent v. Stone & Webster Eng’g Corp., 408 Mass. 108, 113 (1990). The opposing party, however, cannot rest on mere assertions of disputed facts from his pleadings to defeat the motion for summary judgment. LaLonde v. Eissner, 405 Mass. 207, 209 (1989).

II. Rule of Dependent Covenants

Massachusetts’ courts traditionally have not extended the protections available to parties to a residential lease, such as the warranty of habitability and the covenant of quiet enjoyment, to parties to a commercial lease. See generally, Chausse v. Coz, 405 Mass. 264, 266 (1989) (declining to extend the obligation to maintain property in a reasonably safe condition to the commercial lessor); Young v. Garwacki, 380 Mass. 162, 171 n.12 (1980) (limiting lessor’s duty to exercise reasonable care in maintaining leased premises to the residential situation); Agustynowicz v. Bradley, 25 Mass.App.Ct. 405, 407-08 (1985) (commercial lessor had no duty to maintain and repair faulty garage door).

Under the common law, the purpose of a commercial lease was the right to possess the land. See Boston Hous. Auth. v. Hemingway, 363 Mass. 184, 189 (1973) (“The right to possession of the land constituted the chief element of the [landlord tenant] exchange”). The basic rule was that a tenant was required to pay rent so long as he was in possession of the land. See id. The only time the tenant was relieved of the obligation was when the tenant lost possession of the land through actual or constructive eviction. See e.g., Burt, Inc. v. Seven Grand Corp., 340 Mass. 124, 127 (1959) (tenant allowed to terminate lease and discontinue payment of rent based on landlord’s constructive eviction in failing to provide light, heat, power, and elevator service). The lessee’s obligation to pay rent was distinct from the lessor’s duty to make repairs and maintain the premises. See Royce v. Guggenheim, 106 Mass. 201, 203 (1870). The remedy for a landlord’s breach of a promise to make repairs was to seek damages; terminating the lease and withholding rent were prohibited. See id. This is the rule of independent covenants.

In the early nineteenth centuiy, the rule of independent covenants began to lose favor in the residential context; states began adopting statutes which permitted a landlord to evict a tenant if the tenant failed to pay rent, and, through the warranty of habitability, a tenant gained the right to withhold rent where the landlord failed to maintain the premises as promised. See Wesson v. Leone Enterprises, Inc., 437 Mass. 708, 717-18 (2002) (internal citations omitted). The rule of independent covenants, however, for many years was still applied to commercial leases.

In Wesson, the Supreme Judicial Court abandoned the common-law rule of independent covenants for commercial leases and adopted a limited mutually dependent covenant rule from the Restatement (Second) of Property (Landlord and Tenant) §7.1 (1977):

Except to the extent the parties to a lease validly agree otherwise, if the landlord fails to perform a valid promise contained in the lease to do, or to refrain from doing, something . . .

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Related

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293 N.E.2d 831 (Massachusetts Supreme Judicial Court, 1973)
Pederson v. Time, Inc.
532 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1989)
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539 N.E.2d 538 (Massachusetts Supreme Judicial Court, 1989)
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Sims v. Mason
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Wesson v. Leone Enterprises, Inc.
437 Mass. 708 (Massachusetts Supreme Judicial Court, 2002)
Northern Associates, Inc. v. Kiley
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Bluebook (online)
24 Mass. L. Rptr. 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apple-dor-tree-inc-v-webster-dudley-sand-gravel-inc-masssuperct-2008.