Lallo v. Szabo

911 N.E.2d 788, 75 Mass. App. Ct. 1
CourtMassachusetts Appeals Court
DecidedAugust 20, 2009
DocketNo. 07-P-1513
StatusPublished
Cited by3 cases

This text of 911 N.E.2d 788 (Lallo v. Szabo) 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
Lallo v. Szabo, 911 N.E.2d 788, 75 Mass. App. Ct. 1 (Mass. Ct. App. 2009).

Opinion

Katzmann, J.

On August 15, 2006, the plaintiffs, Stephanie and Stephen Lallo, brought an action in Superior Court against the defendants, Marica and Peter Szabo, seeking declaratory judgment on the interpretation of certain condominium documents governing the two-unit condominium in which they all live. Specifically, the plaintiffs sought a finding that the defendants were legally required to enter into arbitration regarding work the plaintiffs wanted to have done in their unit and in some common areas. Both parties moved for summary judgment. A judge issued a ruling for the plaintiffs. The defendants now appeal.

Background,3 On July 21, 2003, a duplex located at 20-22 Holland Street in Newton was converted into a condominium pursuant to G. L. c. 183A, by the recording of a master deed. The condominium floor plans were recorded with the master deed. The building contains two floors, plus a basement and an attic. The plans for the first and the second floors are virtually identical, with each containing a living room, a dining room, a kitchen, a study, two bedrooms, and one bathroom.

The defendants currently reside in unit 22 of the condominium, which consists primarily of the building’s first floor, with a total of 1,361 square feet. The plaintiffs currently reside in unit 20 of the condominium, which includes both the second floor and the attic level of the building. Because the attic level provides an additional 1,274 square feet of raw space, unit 20 contains a total of 2,724 square feet. According to the plans, the attic is designated for “storage.”

The 20-22 Holland Street Condominium Trust (trust) is an organization of unit owners created pursuant to G. L. c. 183A for the purpose of managing and regulating the condominium. Under article HI of the declaration of trust, each unit owner (or [3]*3owners) may elect one trustee to the trust. Plaintiff Stephanie Lallo serves as trustee for unit 20, and defendant Marica Szabo serves as trustee for unit 22.

Each unit owns a fifty percent undivided ownership interest in the condominium common areas and facilities, and each unit has equal responsibility for common area expenses. According to the master deed, the ownership interest was determined based on “the approximate relation that the fair market value of each Unit . . . bears to the aggregate fair market value of” both units, measured as of the date of the master deed. Amendments to this provision, or any provision of the master deed, require the consent of all unit owners. Therefore, unit owners have significant control over all condominium-related decisions.

By letter dated May 23,2006, the plaintiffs notified the defendants that they wanted to perform work on the interior of their unit in order to convert the attic into a master suite. The plaintiffs also requested permission to modify several common areas of the condominium by extending the back roof line and installing dormers, a roof deck, and a new roof. The defendants responded that they would not agree to any of these proposed changes.

On June 30, 2006, the plaintiffs made another request for their proposal, also stating that if the defendants would not cooperate, the plaintiffs would invoke article IX of the trust document, which required disputes to be settled by arbitration.4 The defendants responded again that they would not approve the proposed modifications and refused to enter arbitration. They further maintained that the arbitration clause in the trust document was inapplicable because the plaintiffs’ request, on its face, required a change in the master deed. Such a change required the unanimous consent of the unit owners, and because such consent was lacking, there was no “dispute” subject to arbitration.

The judge determined that the condominium documents unambiguously called for the trustees’ approval regarding certain structural changes. Furthermore, the judge ruled that the defendants had engaged in a “dispute” with the plaintiffs by refusing [4]*4the proposal and therefore were required by the trust document to enter into binding arbitration.

Discussion. We review the evidence according to the familiar summary judgment standard. Summary judgment is appropriate if, “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 a judgment as a matter of law.” Augat, Inc. v. Liberty Mut. Ins. Co., 410 Mass. 117, 120 (1991), citing Mass.R.Civ.P. 56(c), as amended, 436 Mass. 1404 (2002). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue on the record. Pederson v. Time, Inc., 404 Mass. 14, 17 (1989). An appeal based on a summary judgment motion is subject to a de novo review by this court. Forten-bacher v. Commonwealth, 72 Mass. App. Ct. 82, 85 (2008).

A. Condominium ownership. Condominium ownership is generally characterized by the relinquishment of some “personal choice” in exchange for the benefits that may be derived from associating with other property owners. Franklin v. Spadafora, 388 Mass. 764, 769 (1983). A person’s ownership of a condominium unit includes an exclusive fee interest in the individual unit, but is subject to limitations set forth in the master deed and the condominium by-laws. G. L. c. 183A, § 4. Compare Strauss v. Oyster River Condominium Trust, 417 Mass. 442, 452 (1994). Unit ownership also includes “an undivided interest with all other unit owners in the condominium’s common areas and facilities.” Golub v. Milpo, Inc., 402 Mass. 397, 400 (1988). It is therefore a hybrid interest in real estate, entitling the owner to both exclusive possession of his unit and an undivided interest as tenant in common with other unit owners in the common areas. Noble v. Murphy, 34 Mass. App. Ct. 452, 455-456 (1993).

B. The plaintiffs’ proposal. In order to convert the attic into a master suite, the plaintiffs proposed changes to the interior of their unit, such as the construction of a bedroom, a bathroom, a walk-in closet, a small office, a laundry closet, and skylights. Because the building’s roof is pitched above the attic, with a height of approximately seven to seven and one-half feet, living space cannot be constructed without exterior changes to the building. Therefore, the plaintiffs also proposed modifications that would affect the condominium’s common areas, including [5]*5the extension of the back roof line and the installation of dormers, a roof deck, and a new roof.5

In our analysis, we will not discuss the interpretation of the trust document as the Commonwealth’s condominium statute is ultimately decisive.6

General Laws c. 183A sets out certain minimum requirements for establishing a proper condominium. Tosney v. Chelmsford Village Condominium Assn., 397 Mass. 683, 686 (1986). It contains a comprehensive scheme for defining and governing the common areas. Beaconsfield Towne House Condominium Trust v. Zuss-man, 401 Mass. 480, 483 (1988). According to the statute, each unit owner is entitled to an undivided percentage interest in the common areas, reflecting “the approximate relation that the fair value of the unit on the date of the master deed bears to the then aggregate fair value of all the units.” G. L. c. 183A, § 5(a), inserted by St. 1963, c. 493, § 1.

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Bluebook (online)
911 N.E.2d 788, 75 Mass. App. Ct. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lallo-v-szabo-massappct-2009.