CROWN COMMUNITIES, LLC v. PHILIP AUSTIN, Trustee, & Another

CourtMassachusetts Appeals Court
DecidedDecember 3, 2024
Docket23-P-580
StatusPublished

This text of CROWN COMMUNITIES, LLC v. PHILIP AUSTIN, Trustee, & Another (CROWN COMMUNITIES, LLC v. PHILIP AUSTIN, Trustee, & Another) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CROWN COMMUNITIES, LLC v. PHILIP AUSTIN, Trustee, & Another, (Mass. Ct. App. 2024).

Opinion

APPEALS COURT

CROWN COMMUNITIES, LLC vs. PHILIP AUSTIN, trustee,[1] & another[2]

Docket: 23-P-580
Dates: April 17, 2024 – December 3, 2024
Present: Vuono, Rubin, & Walsh, JJ.
County: Barnstable
Keywords: Manufactured Housing Community. Real Property, Right of first refusal. Lis Pendens. Contract, Interference with contractual relations. Consumer Protection Act, Unfair act or practice. Civil Rights, Coercion. Practice, Civil, Findings by judge, Judgment, Motion to amend. Judgment, Amendment.

            Civil action commenced in the Superior Court Department on February 20, 2020.

            The case was heard by Michael K. Callan, J., and a motion to alter or amend the judgment was considered by him.

            Thomas W. Aylesworth for Pocasset Park Association, Inc.

            Walter B. Sullivan for the plaintiff.

            Ellen J. Peterson, Assistant Attorney General, for the Attorney General, amicus curiae, submitted a brief.

            VUONO, J.  The primary issue raised in this appeal is whether the resident owners of manufactured housing units in a manufactured housing community (park) validly exercised their statutory right of first refusal to purchase the land on which the park is situated.  See G. L. c. 140, § 32R (c).  As we discuss in more detail below, the plaintiff, Crown Communities, LLC (Crown Communities), entered into a purchase and sale agreement to buy the park from defendant Philip Austin, as trustee of the Charles W. Austin Trust (trust).  When some park residents learned of the proposed sale, they formed an association, defendant Pocasset Park Association, Inc. (association), to exercise their statutory right of first refusal.  The association submitted a purchase and sale agreement to Austin, as trustee, who, on the advice of an attorney, executed the purchase and sale agreement with the association.

            To determine which purchase and sale agreement was valid, Crown Communities brought a declaratory judgment action against the trust and the association.[3]  The association counterclaimed for tortious interference with contractual relations, violation of G. L. c. 93A, and violation of the Massachusetts Civil Rights Act, G. L. c. 12, §§ 11H, 11I (MCRA), and also requested a declaratory judgment.[4]  Following a jury-waived trial, a Superior Court judge concluded that the association did not validly exercise its statutory right of first refusal and issued a declaratory judgment in favor of Crown Communities.  The trial judge reasoned that (1) the association did not represent the requisite number of the park's resident owners and (2) the requisite number of resident owners did not support the association's purchase of the park.  The judge also found in favor of Crown Communities on the association's counterclaims.

            Thereafter, the association filed a motion to amend the judgment, asserting that the judge's analysis of whether the association validly exercised its statutory right of first refusal was flawed because he imposed an improper heightened burden on the association and committed a mathematical error in calculating how many resident owners supported the association's purchase of the park.  The judge denied the motion, and the association appealed from the judgment and the order on the motion to amend.  We affirm in part, vacate in part, and remand.[5]

            Background.  1.  Statutory background.  "[M]anufactured housing communities provide a viable, affordable housing option to many elderly persons and families of low and moderate income" (citation omitted).  Blackman's Point Homeowners' Ass'n, Inc. v. Call, 103 Mass. App. Ct. 711, 713 (2024).  However, renting land and placing a manufactured housing unit in a manufactured housing community also comes with risks.  See id.  Because manufactured housing units often cannot be relocated, the residents of a manufactured housing community are "at the peril of their landlord[]" should their landlord or a subsequent purchaser of the land decide to discontinue the community.  Greenfield Country Estates Tenants Ass'n v. Deep, 423 Mass. 81, 86 (1996).  "To protect this vulnerable community, the Legislature enacted the Manufactured Housing Act, G. L. c. 140, §§ 32A-32S [act]," Blackman's Point Homeowners' Ass'n, Inc., supra, which "enables residents of manufactured housing communities to purchase the land on which their homes exist" through a right of first refusal, Greenfield Country Estates Tenants Ass'n, supra.

            The act includes provisions specifying when and how an owner must give notice to residents of the intention to sell, see G. L. c. 140, § 32R (a), and when and how an owner must give notice to residents of a bona fide offer, see G. L. c. 140, § 32R (b).  The act then provides that "[a] group or association of residents representing at least fifty-one percent of the manufactured home owners residing in the community which are entitled to notice under paragraph (b) shall have the right to purchase . . . the said community for purposes of continuing such use thereof, provided" that the group or association satisfies certain criteria.  G. L. c. 140, § 32R (c).[6]  The group or association must

"(1) submit[] to the owner reasonable evidence that the residents of at least fifty-one percent of the occupied homes in the community have approved the purchase of the community by such group or association, (2) submit[] to the owner a proposed purchase and sale agreement or lease agreement on substantially equivalent terms and conditions within forty-five days of receipt of notice of the offer made under subsection (b) of this section, (3) obtain[] a binding commitment for any necessary financing or guarantees within an additional ninety days after execution of the purchase and sale agreement or lease, and (4) close[] on such purchase or lease within an additional ninety days after the end of the ninety-day period under clause (3)."

Id.  At trial, the parties agreed that clause (1) required the association to submit to the trust reasonable evidence that the resident owners of at least fifty-one percent of the occupied homes in the park approved the purchase of the park by the association.[7]  While this interpretation reads a word into the act that is not there, whether the parties' interpretation is correct is not before us given their agreement, and we take no position on whether they are correct.  See Smith v. Smith, 5 Mass. App. Ct. 874, 874 (1977) (issue expressly waived below was not before court on appeal).

            2.  Factual background.  We summarize the relevant facts as found by the judge, supplemented where necessary by undisputed documentary evidence.  The park is a manufactured housing community located in the town of Bourne, in a section known as Pocasset.  The park is owned by the trust and managed by Austin, who testified that, among other duties, he provides routine maintenance, collects the rent, and maintains the rent roll.

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Bluebook (online)
CROWN COMMUNITIES, LLC v. PHILIP AUSTIN, Trustee, & Another, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crown-communities-llc-v-philip-austin-trustee-another-massappct-2024.