H1 LINCOLN, INC. v. SOUTH WASHINGTON STREET, LLC, & Others.
SJC-13651
Mass.Mar 11, 2025Background
- H1 Lincoln, Inc. sued South Washington Street, LLC and related entities for breach of contract, breach of implied covenant of good faith and fair dealing, and violation of G.L. c. 93A regarding a commercial property lease.
- Plaintiff prevailed at trial and on appeal, resulting in a judgment of over $20 million.
- After judgment, the defendants paid the full amount but reserved their right to appeal the case.
- The Superior Court judge ordered that, upon full payment, the parties must dissolve property attachments and lis pendens; if any condition was attached to payment, it would not satisfy the judgment.
- The central dispute was whether postjudgment interest should continue to accrue after the defendants fully paid the judgment but reserved their appellate rights.
- The Appeals Court affirmed continued accrual of interest post-payment; the Supreme Judicial Court granted further appellate review on this limited issue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does reserving appellate rights make payment conditional, so postjudgment interest continues accruing? | Full use and enjoyment of payment is not realized while appeal risks remain, so interest should accrue. | Reserving appellate rights does not make the payment conditional—payment in full ends interest accrual. | Exercise of appellate rights is not a condition; full payment stops interest accrual. |
| Must any property attachment/lis pendens remain after payment and appeal? | Dissolution contingent on true satisfaction of judgment, which includes ending interest accrual only when risks of appeal are gone. | Dissolution is required upon full payment, as they are only to secure the judgment, not punitive. | Dissolution is a consequence of full payment, not a condition. |
| What is the proper standard for reviewing whether payment satisfied the judgment and halted interest? | Judge’s decision should be affirmed for abuse of discretion. | This is a legal question requiring de novo review. | De novo review applies; payment in full satisfies the judgment as a matter of law. |
| Does public policy warrant continued interest accrual until all possible appeals have ended? | Continued accrual encourages full and final satisfaction, even during appeal process. | Requiring continued interest would discourage prompt payment and penalize appeals. | Legislature's intent is to encourage prompt payment; postjudgment interest halts at full payment. |
Key Cases Cited
- Governo Law Firm LLC v. Bergeron, 487 Mass. 188 (explains standard of review on payment satisfaction and interest accrual)
- Commerce Ins. Co. v. Szafarowicz, 483 Mass. 247 (addresses discretion and payment into court)
- City Coal Co. of Springfield v. Noonan, 434 Mass. 709 (interest accrues until judgment fully satisfied)
- Osborne v. Biotti, 404 Mass. 112 (purpose of postjudgment interest is compensatory, not punitive)
- Debral Realty, Inc. v. DiChiara, 383 Mass. 559 (explains purpose of lis pendens in litigation)
- Cohen v. Murphy, 368 Mass. 144 (payment of judgment may later require restitution if appeal succeeds)
- Onofrio v. Department of Mental Health, 411 Mass. 657 (interest compensates for delay in payment of damages)
