Pickering Wharf Realty Trust v. Victoria Station Salem, Inc.

2006 Mass. App. Div. 161, 2006 Mass. App. Div. LEXIS 61
CourtMassachusetts District Court, Appellate Division
DecidedOctober 26, 2006
StatusPublished
Cited by1 cases

This text of 2006 Mass. App. Div. 161 (Pickering Wharf Realty Trust v. Victoria Station Salem, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pickering Wharf Realty Trust v. Victoria Station Salem, Inc., 2006 Mass. App. Div. 161, 2006 Mass. App. Div. LEXIS 61 (Mass. Ct. App. 2006).

Opinion

Greco, EJ.

The Pickering Wharf Realty Trust (“Pickering”) owns roughly two-thirds of the Pickering Wharf complex. It leased one of its condominium units to the defendant, Victoria Station Salem, Inc. (‘Victoria Station”), for use as a restaurant. The whole complex includes residences and a shopping center. In July of 2005, Pickering sought to evict Victoria Station for nonpayment of rent. More specifically, what was allegedly not paid was “additional rent” for “a proportion of the Shopping Center’s operating cost,” as more fully discussed below. The summary process complaint originally alleged that this additional rent was due for the period from January 1, 2000 through June, 2005. At this time, however, the dispute appears to focus only on the period from January, 2000 through September, 2003 (although the ledger accompanying the notice to quit seems to indicate otherwise).

The parties agreed to a “trial via submission to the Court” whereby each party would submit a “written trial memoranda including marked trial exhibits and any objections to opposing counsel’s trial exhibits.” The trial judge indicated that after the parties did so, he would decide the matter on the merits. Based on those submissions, the trial judge found that on May 1, 1997, Victoria Station agreed to lease from Pickering for twelve years “Unit B” located in the Grand Turk Building. The lease provided for the payment of a “Minimum Rent” and a “Percentage Rent,” payment of which is not at issue, along with various other amounts collectively termed as “Additional Rent.” One of these amounts, “Cost of Maintenance of Common Areas,” set out in Article IX, Section 9.01 of the lease is at issue here. Pursuant to this provision, beginning in the third year of the lease, Victoria Station was also to pay each month “a proportion of the Shopping Center’s operating cost,” calculated at 8.53% “of the total Common Area Charge.” At the time the lease was signed in 1997, it was estimated that this charge would be $1,600.00 per month. The Shopping Center’s “operating cost” was defined as

the total cost and expense incurred in operating and maintaining the common facilities ... actually used or available for use by Tenant and the employees, agents, servants, customers and other invitees of Tenant,... specifically including, without limitation, gardening and landscaping, the cost of public liability and property damage insurance, repairs, line painting, lighting, sanitary control, removal of snow, trash, rubbish, garbage and other refuse, depreciation on machinery and equipment used in such maintenance, the cost of personnel to implement such services, to direct parking, and to police the common facilities and fifteen (15%) percent of all the foregoing costs... to cover the Owner’s administrative and overhead costs (emphasis supplied).

[162]*162“Common facilities,” in turn, was defined as

all area space, equipment and special services provided by Ownerfor the common or joint use and benefit of the occupants of the Shopping Center, their employees, agents, servants, customers and other invitees, including without limitation parking areas, access roads, driveways, retaining walls, landscaped areas, truck serviceways or tunnels, loading docks, pedestrian malls, courts, stairs, ramps and sidewalks, comfort and first aid stations, washrooms and parcel pick-up stations (emphasis supplied).

The additional rent for the common areas was to be computed annually or quarterly, and was to be paid by the Victoria Station “promptly upon receipt of quarterly bills” from Pickering.

In March of 2003, after conducting an audit of its common area expenses, Pickering notified Victoria Station that a much larger amount was due as additional rent for the prior three years than the originally estimated $1,600.00. Victoria Station refused to pay on the grounds that Pickering had too broadly defined common expenses and common facilities, and that, in any event, the charges were excessive whether covered by the lease or not. Victoria Station represented that it was withholding payment for the additional amounts sought through 2003, but did pay the assessed amounts for subsequent years. As noted above, Pickering did not commence this eviction until July of 2005.

The trial judge agreed with Pickering’s interpretation of the lease, ruling that common area expenses “means all of those expenses attributable to running the entire Pickering Wharf complex” (emphasis in original). The judge rejected Victoria Station’s suggestion that it would not have to contribute to expenses related, for example, to the repair of an elevator in a different building of the complex, or to the repair of a roof or exterior painting of an adjacent building. The trial judge concluded that

[a] fair reading of the intent of the lease is that as a whole, the proper maintenance of the Pickering Wharf complex inures to the benefit of each individual tenant Maintaining the property in a safe, clean and attractive condition results in more persons being willing to come onto the site, and to patronize the businesses located there. The concept is one of a complete village within a city, allowing patrons to take advantage of all the amenities offered there for the potential benefit of all businesses and tenants, including Victoria Station. In one year, an elevator in another building might require repairs. In another year, the condition of the exterior paint at Victoria Station itself might need attention, or the pedestrian walkways in front of the restaurant might need repairs (emphasis in original).

Notwithstanding that interpretation of the lease, the trial judge ultimately found that Pickering lost any right to collect the additional rent for the years 2000, 2001 and 2002 by virtue of its delay in calculating and notifying Victoria Station of the amounts due. Thus, at this stage of the case, Pickering is happy with the trial judge’s expansive interpretation of common expenses, but unhappy with the judge’s finding that Victoria Station retains possession and escapes liability for the money past due. Indeed, Pickering contends that it was error for the judge even to deal with this waiver issue which it maintains was never raised by the parties. Victoria Station, on the other hand, is happy with retaining possession, but unhappy with the prospective application of the judge’s interpretation of common expenses.

1. Under Section 2.05 of the lease, the tenant’s share of the common expenses was deemed to be additional rent; and under Section 19.01, the “failure of [the] Tenant to pay any rental due” gave the owner/landlord an “immediate right of reentry.” The trial judge ruled, however, that because Pickering did not calculate the amount of additional rent sought and did not notify Victoria Station of that amount, [163]*163as contemplated by Section 9.01(c),1 Pickering could “not be heard to complain that the tenant is in breach for failure to pay” in the past Accordingly, he concluded that Pickering was not entitled to possession. We do not agree.

Under Section 23.03 of the lease, no term would be deemed waived by the owner/ landlord unless such waiver was in writing. There is no evidence that Pickering waived in writing its right to the additional rent for Victoria Station’s share of the common expenses. We also do not view the provisions of Section 9.01 (c) as establishing a condition precedent to any obligation to pay the additional rent See Thomas v. Massachusetts Bay Transp. Auth., 39 Mass. App. Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
2006 Mass. App. Div. 161, 2006 Mass. App. Div. LEXIS 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pickering-wharf-realty-trust-v-victoria-station-salem-inc-massdistctapp-2006.