Reniere v. Alpha Management Corp.

32 Mass. L. Rptr. 410
CourtMassachusetts Superior Court
DecidedNovember 25, 2014
DocketNo. MICV201300560
StatusPublished

This text of 32 Mass. L. Rptr. 410 (Reniere v. Alpha Management Corp.) 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
Reniere v. Alpha Management Corp., 32 Mass. L. Rptr. 410 (Mass. Ct. App. 2014).

Opinion

Salinger, Kenneth W., J.

Having obtained a $25,000 settlement on behalf of a class of residential tenants seeking a return of their securiiy deposits, Plaintiffs’ counsel are entitled to recover reasonable attorneys fees and costs under G.L.c. 93A, §9(4), and G.L.c. 186, §15B(2)(a). Defendants cannot avoid liability for attorneys fees in this class action on the ground that they tried to resolve the first named plaintiffs personal claim by returning his $100 deposit. That attempt to “pick off’ the named plaintiff did not moot the proposed class action. For the reasons discussed below, the Court concludes that plaintiffs’ counsel are entitled to recover $60,000 in reasonable attorneys fees (rather than the $88,818.76 sought by plaintiffs’ counsel) plus $3,598.80 in reasonable expenses.

1. Effect of Tender to Named Plaintiff

Defendants argue that Plaintiffs may not recover any attorneys fees because Defendants returned the first named plaintiffs $ 100 securiiy deposit before suit was filed. That assertion is unavailing. After Plaintiffs’ counsel served a demand letter seeking the return of securiiy deposits paid by members of a putative class of tenants or former tenants, Defendants responded by returning the named plaintiffs deposit, without addressing the claims of the other putative class members. Defendants ultimately agreed to the certification of a class consisting of 291 current or former tenants.

Defendants’ decision to refund the named plaintiffs deposit did not resolve the claims of the many other class members, and thus did not obviate the need for Plaintiffs’ counsel to continue to process the class claims. Plaintiffs could and did cure any problem with the named plaintiffs standing by adding a second named plaintiff whose securiiy deposit was still being held by Defendants. As a general rule, “[i]f an individual ‘may not maintain the action on [his or her] own behalf, he or she may not seek relief on behalf of a class.’ ” Barbara F. v. Bristol Div. of Juvenile Court Dept., 432 Mass. 1024 (2000) (rescript), quoting Doe v. The Governor, 381 Mass. 702, 704-05 (1980); but see Weld v. Glaxo Wellcome, Inc., 434 Mass. 81, 88 (2001) (holding that suitability of class representative [411]*411should be analyzed “as a matter of civil procedure under rule 23 rather than as a matter of standing,” and that named plaintiff could represent class in suit against three defendant manufacturers even though he only had an individual claim against one of them); School Comm. of Brockton v. Massachusetts Comm’n Against Discrim., 423 Mass. 7, 14-15 (1996) (union was proper class representative of teachers, even though union itself suffered no injury). But a proposed class of plaintiffs should generally be given the chance to obviate any challenge to the named plaintiff s standing by adding or substituting another representative. After all, in class actions “the class itself is the real party in interest.” Weld, 434 Mass. at 88, quoting Cedar Crest Funeral Home, Inc. v. Lashley, 889 S.W.2d 325, 329 (Tex.Ct.App. 1993) (emphasis in original).

For this reason, a defendant facing a threatened class action cannot moot the lawsuit by paying the named plaintiff the full amount of her individual damages without addressing the claims on behalf of the putative class. As the United States Supreme Court has observed, “the fact that a named plaintiffs substantive claims are mooted due to an occurrence other than a judgment on the merits does not mean that all the other issues in the case are mooted. A plaintiff who brings a class action presents two separate issues for judicial resolution. One is the claim on the merits; the other is the claim that he is entitled to represent a class.” United States Parole Comm’n v. Geraghty, 445 U.S. 388, 402 (1980) (holding that denial of class certification could be reviewed on appeal even though named plaintiffs personal claim has become moot). Thus, “(requiring multiple plaintiffs to bring separate actions, which effectively could be ‘picked off by a defendant’s tender of judgment before an affirmative ruling on class certification could be obtained, obviously would frustrate the objectives of class actions; moreover it would invite waste of judicial resources by stimulating successive suits brought by others claiming aggrievement.” Deposit Guar. Nat. Bank Jackson, Miss. v. Roper, 445 U.S. 326, 339 (1980) (holding that denial of class certification could be reviewed on appeal even though defendant had tendered maximum potential recovery of two named plaintiffs, and district court had entered judgment in favor of named plaintiffs over their objection).

Consistent with these Supreme Court decisions, the apparent majority view of federal appellate courts is that “an unaccepted Rule 68 offer of judgment — for the full amount of the named plaintiffs individual claim and made before the named plaintiff files a motion for class certification — does not moot a class action.” Pitts v. Terrible Herbst, Inc., 653 F.3d 1081, 1091-92 (9th Cir. 2011); accord, e.g., Lucero v. Bureau of Collection Recovery, Inc., 639 F.3d 1239 (10th Cir. 2011); Weiss v. Regal Collections, 385 F.3d 337, 342-50 (3d Cir. 2004). There is a split among the United States Courts of Appeals on this issue. See Genesis Healthcare Corp. v. Symczyk, 133 S.Ct. 1523, 1528 & n.3 (2013); see also Yaakov v. ACT, Inc., 987 F.Sup.2d 124, 126-28 (D.Mass. 2014) (Hillman, J., collecting cases). The Supreme Court did “not reach this question, or resolve the split” in Genesis Health, because the majority concluded that the issue was not “properly before” the Court. Id. at 1528-29. The four dissenting justices would have reached the issue and held that a class action is not mooted by an unaccepted offer to pay the full amount of the named plaintiffs individual claims. As Justice Kagan explained, “an unaccepted offer of judgment cannot moot a case. When a plaintiff rejects such an offer— however good the terms — her interest in the lawsuit remains just what it was before. And so too does the court’s ability to grant her relief. An unaccepted settlement offer — like any unaccepted contract offer — is a legal nullity, with no operative effect.” Id. at 1533 (Kagan, J., dissenting, joined by Ginsburg, Breyer, and Sotomayor, J.J.).

The Court is persuaded by the federal case law discussed above, and concludes that the same reasoning applies to the class action provisions of Mass.R.Civ.P. 23 and G.L.c. 93A. Cf. Smaland Beach Ass’n, Inc. v. Genova, 461 Mass. 214, 228 (2012) (judicial construction of federal rules of civil procedure applies to parallel state rules, “absent compelling reasons to the contrary or significant differences in content” (quoting Strom v. American Honda Motor Co., 423 Mass. 330, 335 (1996), and Rollins Envtl. Servs., Inc. v. Superior Court, 368 Mass. 174, 180 (1975)).

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Related

Deposit Guaranty National Bank v. Roper
445 U.S. 326 (Supreme Court, 1980)
United States Parole Commission v. Geraghty
445 U.S. 388 (Supreme Court, 1980)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Lucero v. Bureau of Collection Recovery, Inc.
639 F.3d 1239 (Tenth Circuit, 2011)
Pitts v. Terrible Herbst, Inc.
653 F.3d 1081 (Ninth Circuit, 2011)
William Weinberger v. Great Northern Nekoosa Corp.
925 F.2d 518 (First Circuit, 1991)
Genesis HealthCare Corp. v. Symczyk
133 S. Ct. 1523 (Supreme Court, 2013)
Nadarajah v. Holder
569 F.3d 906 (Ninth Circuit, 2009)
Cedar Crest Funeral Home, Inc. v. Lashley
889 S.W.2d 325 (Court of Appeals of Texas, 1993)
Rollins Environmental Services, Inc. v. Superior Court
330 N.E.2d 814 (Massachusetts Supreme Judicial Court, 1975)
Heller v. Silverbranch Construction Corp.
382 N.E.2d 1065 (Massachusetts Supreme Judicial Court, 1978)
Fontaine v. Ebtec Corp.
613 N.E.2d 881 (Massachusetts Supreme Judicial Court, 1993)
Fletcher v. Cape Cod Gas Co.
477 N.E.2d 116 (Massachusetts Supreme Judicial Court, 1985)
Linthicum v. Archambault
398 N.E.2d 482 (Massachusetts Supreme Judicial Court, 1979)
Homsi v. CH Babb Co., Inc.
409 N.E.2d 219 (Massachusetts Appeals Court, 1980)
Doe v. the Governor
412 N.E.2d 325 (Massachusetts Supreme Judicial Court, 1980)
Rex Lumber Co. v. Acton Block Co.
562 N.E.2d 845 (Massachusetts Appeals Court, 1990)
Stowe v. Bologna
629 N.E.2d 304 (Massachusetts Supreme Judicial Court, 1994)
Stratos v. Department of Public Welfare
439 N.E.2d 778 (Massachusetts Supreme Judicial Court, 1982)

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Bluebook (online)
32 Mass. L. Rptr. 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reniere-v-alpha-management-corp-masssuperct-2014.