Flatley v. City of Malden

1 Mass. L. Rptr. 613
CourtMassachusetts Superior Court
DecidedMarch 10, 1994
DocketNo. 92-5582
StatusPublished

This text of 1 Mass. L. Rptr. 613 (Flatley v. City of Malden) 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
Flatley v. City of Malden, 1 Mass. L. Rptr. 613 (Mass. Ct. App. 1994).

Opinion

Gershengorn, J.

This action arises out of a dispute between plaintiff Thomas J. Flatley d/b/a The Flatley Company (Flatley) and the defendant City of Malden (the City, Malden) over the City’s system of water rates. Flatley, which is the owner of a number of apartment buildings in Malden, alleges that the City’s rate system, which bills heavy users at a higher rate than others, and which aggregates all units in an apartment building for purposes of determining billing rates, discriminates against residents of apartment units. The plaintiff now moves for summary judgment, arguing that all facts material to resolution of this matter are undisputed. The defendant requests judgment under Mass.R.Civ.P. 56(c).1 For the reasons discussed, the plaintiffs motion is DENIED; judgment for the defendant is GRANTED.

BACKGROUND

Based on the affidavits submitted, the court treats the following facts as true for purposes of this summary judgment motion only.

Plaintiff Flatley is a sole proprietorship which owns an apartment complex called Granada Highlands located at 140-252 Kennedy Drive in Malden, Massachusetts. Flatley owns a number of buildings on Kennedy Drive, including thirteen (13) apartment buildings contained in the Granada Highlands complex. Each of these apartment buildings has a single water meter. There are nine hundred nineteen (919) apartment units in the thirteen (13) apartment buildings in the complex. The thirteen (13) buildings at issue are almost exclusively comprised of residential apartment units. However, one building contains an office and health club. In addition, there is a dispute as to whether there may be certain commercial uses in some of the apartment units.2

Malden is a political subdivision of the Commonwealth. At all times relevant to this case, Malden’s [614]*614Public Works Commission has utilized a three-tiered system of water rates in which water and sewer charges are combined and calculated based on water consumption. The first one thousand (1,000) cubic feet of water is billed at a flat rate which varies depending on the size of the user’s meter. Water use beyond that volume becomes incrementally more expensive as use increases. Flatley here challenges the rates as applied to it in the billing periods ending July 1988, February 1989, July 1989, February 1990, July 1990, February 1991, July 1991, February 1992. As of July 1, 1988, the first one thousand (1,000) cubic feet of combined water and sewer use costs twenty-five dollars ($25.00); each hundred (100) cubic feet of use thereafter and up to five thousand (5,000) cubic feet costs two dollars, eight cents ($2.08); each hundred (100) cubic feet between five thousand and one (5,001) cubic feet and seventy-five thousand (75,000) cubic feet costs two dollars, eighty-six cents ($2.86); and each hundred (100) cubic feet over seventy-five thousand (75,000) cubic feet costs three dollars, forty cents ($3.40). The rates adopted as of July 1, 1991 were thirty dollars ($30.00), two dollars, fifty-one cents ($2.51), four dollars, sixty cents ($4.60), and five dollars, fifty-one cents ($5.51).

The City’s regulations dictate that owners of real estate will be metered and billed for water and sewer charges. Therefore, the City bills Flatley, and not its tenants, for the water used in its apartment buildings. Each of Flatley’s apartment buildings has only one water meter, and the City determines the rate at which to charge Flatley for each building's use by looking at the total volume of water used by that building. Because the apartment units in a building Erre aggregated for the purpose of determining the billing rate for that building’s water use, the plaintiff has paid a higher rate for some portion of its water use them that paid by an average single-family residence with consumption comparable to that of an average apartment unit in one of plaintiffs buildings.

There are other municipalities which also charge different water rates based on the volume of use, but which determine the applicable rate at which to charge the owner of an apartment building by dividing the building’s total volume of use by the number of units in that building. The plaintiff alleges that had such a rate system been used by the City during the eight billing periods at issue here, the plaintiffs water bills would have been three hundred eighteen thousand, seven hundred thirty seven dollars, twelve cents ($318,737.12) less than those it actually paid.

The plaintiff has not paid its water bills for the billing periods ending July 1992, February 1993, and July 1993. As of December 22, 1993, Flatley owed to the City two hundred forty-nine thousand, three hundred one dollars, thirty-seven cents ($249,301.37) in water and sewer charges on the nineteen (19) buildings it owns on Kennedy Drive. Flatley intends to challenge these bills pursuant to G.L.c. 40, §§42A-E when the charges appear on its real estate tax bills and are subject to abatement.

DISCUSSION

1. Exhaustion and Ripeness

The City argues that this action is not properly before the court because Flatley has failed to exhaust its administrative remedies. Where a water consumer seeks to challenge water and sewer use charges that have not been paid, the administrative mechanism for such challenge is the abatement procedure set forth in G.L.c. 40, §§42A-I. Epstein v. Executive Secretary of Board of Selectman of Sharon, 22 Mass.App.Ct. 135, 137 (1986). However, the abatement procedure set out in that statute applies only to unpaid charges. Id. A customer who has paid its water bills “would fit uneasily within the framework of G.L.c. 40, §§42A through 42F.” Id. Because Flatley here challenges paid bills, and the City has not demonstrated that an administrative resolution of Flatley’s unpaid bills would provide Flatley with the remedy it seeks as to the paid bills,3 I find the City’s exhaustion argument unpersuasive. The City has simply failed to point to any administrative mechanism by which Flatley could, but has failed to, challenge its paid water and sewer use bills.

Although not raised by the parties, a matter of concern to the court here is the ripeness of this action. Under the administrative scheme just discussed, Flatley may challenge its unpaid water and sewer use bills by applying for an abatement with the board having control of the water department and, if such petition for abatement is denied, by appealing to the Appellate Tax Board. G.L.c. 40, §42E, Epstein, supra, 22 Mass.App.Ct. at 136-37. Flatley plans to seek relief from the unpaid charges through these means. As a result, it is likely that the administrative bodies which will be hearing Flatley’s challenge to the unpaid bills will consider the same substantive issue raised in this case — i.e. whether the City’s water rate scheme as applied to Flatley’s apartment buildings is permissible.

Under the doctrine of ripeness, this court is wary of deciding an issue pending before a specialized administrative body having expertise and jurisdiction in the matter, until such time as that body has been allowed to pronounce its final interpretation on the issue. See generally, Abbott Laboratories v. Gardner, 387 U.S. 136 (1967).

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Epstein v. Executive Secretary
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Bluebook (online)
1 Mass. L. Rptr. 613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flatley-v-city-of-malden-masssuperct-1994.