Diggs v. Wilmington Whispering Pines, LLC

31 Mass. L. Rptr. 618
CourtMassachusetts Superior Court
DecidedFebruary 5, 2014
DocketNo. MICV201303039F
StatusPublished

This text of 31 Mass. L. Rptr. 618 (Diggs v. Wilmington Whispering Pines, LLC) 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
Diggs v. Wilmington Whispering Pines, LLC, 31 Mass. L. Rptr. 618 (Mass. Ct. App. 2014).

Opinion

Curran, Dennis J., J.

The plaintiffs, Trustees of Whispering Pines Condominium Trust, move for summary judgment on the defendant’s failure to pay common charges for the condominiums in violation of the condominium trust and G.L.c. 183A, section 6. They also request a declaratory judgment that an amendment to the master deed that the defendant (the developer) tried to effectuate, changing the dates upon which each of the units was created, be rendered null and void. In short, this collection case is not without a few detours along the path.

For the following reasons, the plaintiffs’ motion for summary judgment is ALLOWED, as is their request for a declaratory judgment.

We take, as we must, all evidence and reasonable inferences drawn from that evidence, in the light most favorable to the non-moving party (here, the defendant).

Factual Background

The summary judgment record reveals the following facts.

The plaintiffs are unit owners acting as Trustees who manage and maintain the common areas of the [619]*619Whispering Pines condominium. The defendant Wilmington Whispering Pines, LLC was the developer and declarant of the condominium trust.

The defendant-developer recorded the condominium’s master deed, which created 24 units, with the Middlesex North Registry of Deeds on July 18, 2007.1 The declaration of the condominium trust was recorded simultaneously with the master deed. The defendant-developer was the record owner of each of the units from the date the master deed was created until it sold each unit: the first unit was sold on July 31, 2007, and the last unit five years later, on July 31, 2012.

The parties agree that Article V, Section 2B of the condominium trust requires that each unit owner pay his/her/its respective share of the common charges in monthly installments. The defendant-developer did not pay those monthly charges. Instead, it claims it paid other condominium-related expenses, and now argues that these should set off its obligation to pay the usual common charges which were eventually billed to it and which totaled $42,464.82.

The Trustees have since assessed late fees, legal fees and costs against the developer for its failure to timely pay those common charges. The developer counters that these fees are neither proper nor permissible.

DISCUSSION

Under the established standard, summary judgment will be granted where, viewing the evidence in the light most favorable to the non-moving party, all material facts have been established, and the moving party is entitled to judgment as a matter of law. Cabot Corp. v. AVXCorp., 448 Mass. 629, 636-37 (2007). The moving party must establish that there are no genuine issues of material fact. Miller v. Mooney, 431 Mass. 57, 60 (2000).

Count I

The Trustees claim there is no genuine issue of material fact as to the developer’s liability for each unit’s proportional share of the common charges from the date of the master deed until the date each unit was sold. They claim that all units are subject to common charges from the date the master deed and the condominium trust were recorded, and that the developer is also liable for collection costs and expenses.

The developer recorded the master deed on July 18, 2007. The first three units in Phase I were sold within two weeks, by August 1, 2007. Those three units were assessed and paid their common monthly charges. At this time, however, the developer continued to own the remaining 21 units. As owners of those remaining units, they should have, but did not, assess themselves the usual common monthly charges. Instead, the developer’s manager engaged in creative accounting and exempted his employer-developer from paying the legally-required financial obligations for each such unit.

The developer excuses its conduct by claiming that as individual units were sold, the projected budgets were increased for the costs associated with the additional units and that those costs were passed onto the owners of the conveyed units on a “prorated basis.” This system continued throughout Phase I until it sold the last unit.

Common charges and ownership are governed by G.L.c. 183A as well as the master deed. The court interprets a statute “according to the intent of the Legislature ascertained from all its words construed by the ordinary and approved usage of the language . . . [and] the statutory language itself is the principal source of insight into the legislative purpose.” Registrar of Motor Vehicles v. Board of Appeals on Motor Vehicle Liability Policies & Bonds, 382 Mass. 580, 585 (1981). “[A] statute must be construed so that effect is given to all its provisions, so that no part will be inoperative or superfluous.” Bankers Life & Cas. Co. v. Commissioner of Insurance, 427 Mass 136, 140 (1998) (internal citation omitted). The court must give effect to each word and phrase in a statute, and seek to avoid an interpretation that treats some words as meaningless. See Milford v. Boyd, 434 Mass. 754, 757 (2001).

A master deed creating a condominium must be recorded under G.L.c. 183A, sections 2 and 8. Those sections spell out the requirements of the deed. Section 3 states that even before having built upon the site, full rights are granted in the common areas and facilities; and full real estate rights are vested in the owner.

Section 5(a) provides that “(e]ach unit owner shall be entitled to an undivided interest in the common areas and facilities in the percentage set forth in the master deed.” Section 5(b) recites that such percentage “shall not be altered without the consent of all unit owners, expressed in an amended master deed duly recorded.” Excluding some exception which does not apply in this case, “all common expenses shall be assessed against all units either in accordance with their respective percentages of undivided interest in the common areas and facilities or, if stated in the master deed or an amendment thereto duly recorded in the approximate relation that the area of the unit bears to the aggregate area of all the units... however, that such an amendment shall require the consent of all unit owners whose common expense assessment is materially affected. The organization of unit owners shall have a lien on a unit for any common expense assessment levied against that unit from the time the assessment becomes due.” G.L.c. 183A, section 6.

Under section 5(b), the common expenses must be assessed against all in accordance with their respective percentages from the master deed, or the approximate percentage of the area of the unit in relation to [620]*620the aggregate area of all units. Moreover, section 2(b) of the condominium trust states that each unit owner shall be liable for common expenses; section 2(c) states that the Trustees shall render statements to unit owners for their respective share of the common expenses. The developer argues that it was exempt from paying those common monthly expenses because it chose to make other condominium-related payments. But absent bad faith or illegality, common monthly charges are not subject to set-off. Baker v. Monga, 32 Mass.App.Ct. 450, 453-54 (1992). See also Blood v. Edgar’s, Inc., 26 Mass.App.Ct. 402 (1994).

The Trust, at Article V, section 2B, requires that “each unit owner shall be liable for common expenses according to his respective percentage of undivided interest. G.L.c.

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Related

Baker v. Monga
590 N.E.2d 1162 (Massachusetts Appeals Court, 1992)
Registrar of Motor Vehicles v. Board of Appeal on Motor Vehicle Liability Policies & Bonds
416 N.E.2d 1373 (Massachusetts Supreme Judicial Court, 1981)
Miller v. Mooney
431 Mass. 57 (Massachusetts Supreme Judicial Court, 2000)
Town of Milford v. Boyd
434 Mass. 754 (Massachusetts Supreme Judicial Court, 2001)
Cabot Corp. v. AVX Corp.
863 N.E.2d 503 (Massachusetts Supreme Judicial Court, 2007)
Bingham McCutchen, LLP v. McCourt
29 Mass. L. Rptr. 46 (Massachusetts Superior Court, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
31 Mass. L. Rptr. 618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diggs-v-wilmington-whispering-pines-llc-masssuperct-2014.