64 N.E.3d 1287
Mass.2016Background
- Plaintiff Elnedis Moronta sued Nationstar Mortgage (and Fremont/Successor) alleging violations of G. L. c. 93A; summary judgment for defendants was entered in Superior Court.
- The Appeals Court reversed summary judgment as to the c. 93A claim, finding a genuine issue of material fact and rejecting the defense that a demand letter was required despite the defendant lacking a Massachusetts place of business.
- The Appeals Court held that no demand letter is required under G. L. c. 93A, § 9(3) when the prospective respondent does not maintain a place of business in the Commonwealth, even if it keeps assets here.
- The Supreme Judicial Court granted further review limited to the statutory demand-letter exception’s scope: whether the exception requires both absence of a place of business and absence of assets, or whether either absence suffices.
- The SJC addressed statutory text, grammar, and the remedial purposes of c. 93A and the demand-letter rule to determine the proper interpretation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a plaintiff is excused from serving a c. 93A demand letter when the defendant lacks a Massachusetts place of business but keeps assets in Massachusetts | Moronta: either prong suffices; no demand letter required if defendant lacks a place of business, even if it keeps assets here | Nationstar: demand letter required unless defendant lacks both a place of business and assets in Massachusetts | The SJC: the statutory text and purpose mean the exception applies if either prong is met; no demand letter needed when defendant lacks a place of business in MA (or alternatively lacks assets) |
Key Cases Cited
- Meikle v. Nurse, 474 Mass. 207 (2016) (statutory interpretation principles)
- Bleich v. Maimonides Sch., 447 Mass. 38 (2006) ("or" indicates alternative prongs)
- Eastern Mass. St. Ry. v. Massachusetts Bay Transp. Auth., 350 Mass. 340 (statutory construction example)
- Auto Flat Car Crushers, Inc. v. Hanover Ins. Co., 469 Mass. 813 (2014) (c. 93A is broadly remedial)
- Moronta v. Nationstar Mortgage, LLC, 88 Mass. App. Ct. 621 (2015) (Appeals Court decision reversing summary judgment and addressing the demand-letter issue)