Hermida v. Archstone

950 F. Supp. 2d 298, 2013 WL 2896806, 2013 U.S. Dist. LEXIS 84368
CourtDistrict Court, D. Massachusetts
DecidedJune 14, 2013
DocketCivil Action No. 10-12083-WGY
StatusPublished
Cited by14 cases

This text of 950 F. Supp. 2d 298 (Hermida v. Archstone) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hermida v. Archstone, 950 F. Supp. 2d 298, 2013 WL 2896806, 2013 U.S. Dist. LEXIS 84368 (D. Mass. 2013).

Opinion

MEMORANDUM AND ORDER

WILLIAM G. YOUNG, District Judge.

I. INTRODUCTION

This is a case of first impression. Maeve and Jefflee Hermida (collectively, the “Hermidas”) brought this suit for declaratory judgment against their former landlord, ASN Reading LLC d/b/a Arch-stone Reading (“Archstone”) and fourteen [302]*302other affiliated entities. The Hermidas sent a pre-suit demand letter on their behalf and on that of the putative class and, after the Court certified the class against Archstone alone, the Hermidas sent an additional post-suit demand letter. Arch-stone tendered a reasonable offer to the Hermidas individually in response to the pre-suit demand and later made a reasonable offer to the certified class in response to the post-suit demand. Both offers were rejected.

In light of the Chapter 93A fee-shifting policies, the Court requested that the parties brief whether the tender of the original settlement cut off the recovery of attorneys’ fees where the Hermidas made their demand as part of the putative class from the inception of the demand up until the offer to the class was made.

A. Stipulated Facts

The Hermidas rented apartment unit #302 located at Archstone Circle, Reading, Massachusetts, a property then owned by Archstone. Joint Stipulation Uncontested Facts (“Stipulated Facts”) ¶ 9, ECF No. 198. The Hermidas paid a one-time amenity-use fee of $475 to Archstone on April 30, 2007, in association with their initial lease agreement. Id.

On August 3, 2010, counsel for the Hermidas sent Archstone a demand letter (the “First Demand Letter”) alleging that Archstone and its affiliated entities violated Massachusetts General Laws chapter 186, section 15B (the “Security Deposit Statute”) and Massachusetts General Laws chapter 93A (the “Consumer Protection Statute”) by charging up-front amenity-use fees. Id. ¶¶ 1, 5. The Hermidas claimed actual “damages in the amount of $475.00, plus statutory interest since the date of payment.” Id. ¶ 1; see also Aff. Diane R. Rubin Supp. Def. Archstone’s Notice Removal, Ex. 2, Mass. Gen. Laws Ch. 93A Class Action Demand Letter (“First Demand Letter”) 2, ECF No. 1-1 (stating that the Hermidas sent the written demand letter on behalf of themselves and the “class of people who have lived in Archstone properties in Massachusetts from August 3, 2006 up to and including August 3, 2010”).

On September 1, 2010, in response to the Hermidas’ demand letter, and within thirty days of the date that demand was sent, Archstone offered to pay the Hermidas $665.67, which included both $475 in actual damages and statutory interest of twelve percent simple interest per annum calculated from the date the Hermidas paid the amenity-use fee through the date of the tender. Stipulated Facts ¶¶ 2-3; see also Aff. Rebecca J. Schwartz, Ex. B, Letter from Peter E. Strand, Shook, Hardy & Bacon L.L.P., to Matthew J. Fogelman, Fogelman & Fogelman LLC (Sept. 1, 2010) (“Archstone’s Resp. Hermidas”) 2, ECF No. 187-2 (noting that Archstone’s offer extended only to the Hermidas). Archstone expressly reserved the right to respond to any subsequent demand letter made on behalf of the “certified class” and tender a settlement offer to the members of the class that would “limit any recovery to the relief tendered.” Archstone’s Resp. Hermidas 2 (quoting Mass. Gen. Laws ch. 93A, § 9(3)) (internal quotation marks omitted). On October 28, 2010, the Hermidas filed a class action complaint in the Massachusetts Housing Court, which constituted an implied rejection of Archstone’s offer. Stipulated Facts ¶¶ 3-4; see Aff. Diane R. Rubin Supp. Def. Archstone’s Notice Removal, Ex. 1, Class Action Compl. (“Compl.”) ¶¶ 1, 51, ECF No. 1-1. On December 2, 2010, Archstone removed the action to this Court pursuant to the Class Action Fairness Act. Stipulated Facts ¶ 6.

On October 21, 2011, the Hermidas sent a demand letter (the “Second Demand [303]*303Letter”) to Archstone on behalf of the members of the certified class. Aff. Rebecca J. Schwartz, Ex. H, Mass. Gen. Laws Ch. 93A Class Action Demand Letter 2, ECF No. 187-8; see also Stipulated Facts ¶ 15. On November 18, 2011, Arch-stone responded to the Second Demand Letter by tendering a settlement offer of $155,447.47 to all of the class members but the Hermidas, which comprised a full refund of each class members’ amenity-use fee plus twelve percent simple interest on the fee calculated from the date each class member paid the fee through the date of the tender. Stipulated Facts ¶ 16; see also Aff. Rebecca J. Schwartz, Ex. I, Letter from Peter E. Strand, Shook, Hardy & Bacon L.L.P., to Matthew J. Fogelman, Fogelman & Fogelman LLC (Nov. 18, 2011) (“Archstone’s Resp. Class”) 1, ECF No. 187-9. On February 13, 2012, the Hermidas filed in essence a motion for clarification, despite Archstone’s warnings that it would consider such a motion to be a rejection of the settlement offer to the class. Id. ¶¶ 17-19 (noting that the Hermidas withdrew the motion on February 28, 2012, one day after Archstone had filed its opposition).

II. ANALYSIS

A. Entitlement to Attorneys’ Fees

To award attorneys’ fees, this Court must first determine if the fees are warranted, and, if so, the Court must determine the amount of fees appropriate. See Hensley v. Eckerhart, 461 U.S. 424, 433, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983).

1. Chapter 93A’s Demand Letter Requirement

Prior to filing a Chapter 93A claim, the plaintiff must send a written demand letter “identifying the claimant and reasonably describing the unfair or deceptive act or practice ... and the injury suffered.” Mass. Gen. Laws ch. 93A, § 9(3). “The purposes of the [demand] letter are twofold: (1) to encourage negotiation and settlement by notifying prospective defendants of claims arising from allegedly unlawful conduct and (2) to operate as a control on the amount of damages which the complainant can ultimately recover.” Spring v. Geriatric Auth. of Holyoke, 394 Mass. 274, 288, 475 N.E.2d 727 (1985) (quoting Slaney v. Westwood Auto., Inc., 366 Mass. 688, 704, 322 N.E.2d 768 (1975)) (internal quotation marks omitted).

Multiple damages may be awarded if the defendant refuses to tender reasonable relief despite having “knowledge or reason to know that the act or practice complained of violated [Chapter 93A, Section 2].” Mass. Gen.'Laws ch. 93A, § 9(3); Burnham v. Mark IV Homes, Inc., 387 Mass. 575, 583, 441 N.E.2d 1027 (1982) (“[The] award of multiple damages is an attempt to promote prelitigation settlements by making it unprofitable for the defendant either to ignore the plaintiffs request for relief or to bargain with the plaintiff with respect to such relief in bad faith.” (quoting Heller v. Silverbranch Constr. Corp., 376 Mass. 621, 627, 382 N.E.2d 1065 (1978)) (internal quotation mark omitted)).

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Cite This Page — Counsel Stack

Bluebook (online)
950 F. Supp. 2d 298, 2013 WL 2896806, 2013 U.S. Dist. LEXIS 84368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hermida-v-archstone-mad-2013.