DRUMMER BOY HOMES ASSOCIATION, INC. vs. CAROLYN P. BRITTON & another.¹
Supreme Judicial Court of Massachusetts
March 29, 2016
474 Mass. 17 (2016)
Middlesex. January 7, 2016. - March 29, 2016.
Present: GANTS, C.J., SPINA, CORDY, BOTSFORD, DUFFLY, LENK, & HINES, JJ.
The plaintiff in a civil action had standing as the organization of condominium unit owners to bring a cause of action pursuant to
An organization of condominium unit owners properly filed successive legal actions pursuant to
This court concluded that the plaintiff in a civil action to establish and enforce multiple contemporaneous liens on a condominium unit, each with priority over the first mortgage, for the recoupment of successive six-month periods of unpaid common expenses was statutorily entitled to recover reasonable attorney‘s fees and costs associated with the proceedings before this court and the Appeals Court. [29-30]
CIVIL ACTIONS commenced in the Concord Division of the District Court Department on August 8, 2007; February 6, 2008; and October 6, 2008.
After consolidation, the case was heard by Peter J. Kilmartin, J., on a motion for summary judgment, and a motion to alter and amend the judgment was also heard by him.
After review by the Appeals Court, the Supreme Judicial Court granted leave to obtain further appellate review.
Thomas O. Moriarty (Jennifer L. Barnett also present) for the plaintiff.
Michael A.F. Johnson, of the District of Columbia (Rhiannon A. Campbell also present), for Federal Housing Finance Agency & others, amici curiae.
Randy A. Britton.
The following submitted briefs for amici curiae.
Alan E. Lipkind & Elizabeth Brady Murillo for Avidia Bank & others.
Henry A. Goodman, Ellen A. Shapiro, Charles A. Perkins, Jr., Scott J. Eriksen, & David R. Chenelle for Community Associations Institute.
Clive D. Martin & Diane R. Rubin for Real Estate Bar Association for Massachusetts, Inc.
Stephen C. Reilly & Jennifer E. Greaney for Bank of America, N.A.
SPINA, J. At issue in this case is whether
1. Background. Over the last ten years, the parties in this case have been involved in protracted and contentious litigation concerning parking rights at a condominium complex. Our recitation of the factual background and procedural history encompasses only those matters that relate to the specific issues now before this court. Drummer Boy Condominium II, which consists of twelve individual units, is one of nine condominiums comprising Drummer Boy Green in Lexington. In the aggregate, the nine condominiums have approximately 150 units. The defendant, Carolyn P. Britton, purchased a unit in Drummer Boy Condominium II in
Around 2004, the Brittons began to withhold payment of their monthly common expenses because of a dispute concerning parking rules and related fines. On August 8, 2007, the Drummer Boy Homes Association, Inc. (association),⁶ commenced an action in the District Court against the Brittons.⁷ It sought to recover unpaid common expenses and to enforce a priority lien pursuant to
On March 9, 2009, the association filed a motion for summary
Both parties appealed to the Appellate Division of the District Court. By decision dated July 20, 2011, a panel of the Appellate
Next, the panel considered the association‘s argument that, pursuant to
Both parties appealed to the Appeals Court, which affirmed the judgment of the Appellate Division. Drummer Boy Homes Ass‘n, Inc. v. Britton, 86 Mass. App. Ct. 624 (2014). We then granted the association‘s application for further appellate review.
2. Standing. As an initial matter, the Brittons contend that because the association is not the “organization of unit owners” for Drummer Boy Condominium II, it does not have standing to bring a cause of action pursuant to
On June 7, 1976, the trustees of Drummer Boy Trust (trustees), together with their successors and assigns, executed a Declaration of Covenants, Easements, and Restrictions (declaration) to create Drummer Boy Green. In turn, the declaration provided for the creation of the association as the entity to which the trustees would delegate and assign “the powers of maintaining and administering . . . common areas and facilities and administering and enforcing the covenants and restrictions and collecting and disbursing the assessments and charges hereinafter created.” The association was incorporated under the laws of Massachusetts for the purpose of exercising these functions.¹³ The declaration further states that “[e]very person who or entity which is a record owner of a fee or undivided fee interest in any Living Unit shall be a member of the [association].” As set forth in the covenant for maintenance assessments, if an assessment is not paid in a timely manner, the association “may bring an action at law against the [unit owner] personally obligated to pay the same or to foreclose the lien against the Living Unit.”
On September 30, 1976, the trustees executed a master deed, submitting specified land, together with the buildings and improvements erected thereon, and all easements, rights, and appur-
In essence, pursuant to the master deed and the bylaws, Drummer Boy Condominium II Association delegated the exclusive authority to assess and collect common expenses to the association. That being the case, the association functions as the “organization of unit owners” to recover unpaid common expenses and to enforce a priority lien in accordance with
3. Successive priority liens. The association contends that because a unit owner‘s responsibility to pay monthly common expenses is a recurring obligation, an organization of unit owners can file successive legal actions under
Our analysis of
An organization of unit owners is entitled to have a lien on a condominium unit for unpaid common expenses from the time such expenses become due. See
Prior to 1992, a lien on a condominium unit for unpaid common expenses was subordinate to the first mortgage of record. See
Significantly, the Legislature inserted the second paragraph of
“[A] lien [under
G. L. c. 183A, § 6 , for unpaid common expenses] is prior to all other liens and encumbrances on a unit except (i) liens and encumbrances recorded before the recordation of the master deed, (ii) a first mortgage on the unit recorded before the date on which the assessment sought to be enforced became delinquent, and (iii) liens for real estate taxes and other municipal assessments or charges against the unit. This lien is also prior to the mortgages described in clause (ii) above to the extent of the common expense assessments based on the budget adopted pursuant to [G. L. c. 183A, § 6 (a) ,] which would have become due in the absence of acceleration during the six months immediately preceding institution of an action to enforce the lien and to the extent of any costs and reasonable attorneys’ fees incurred in the action to enforce the lien . . . ” (emphasis added).
General Laws
In 1998, the Legislature inserted the fourth and fifth paragraphs of
“The organization of unit owners shall take no further action to enforce its priority liens against a particular unit for common expenses if the first mortgagee agrees in writing that a priority lien exists without the requirement of instituting an action, as to such enforcement and pays, within [sixty] days of said writing, the following prescribed amounts: (1)
so much of any delinquent assessments on that unit for regularly recurring budgeted common expenses over a period for six months immediately preceding the notice of delinquency that would constitute a priority amount if an action had been commenced on the date the organization gives its delinquency notice to the mortgagee; (2) costs and reasonable attorney‘s fees incurred by the organization at the time of said writing by the first mortgagee to collect outstanding common expenses . . . ; [and] (3) all future common expenses, and special assessments other than special assessments for improvements made pursuant to [
G. L. c. 183A, § 18 ,] assessed against that unit from the date of said notice until such time as the mortgagee‘s mortgage is foreclosed or otherwise no longer encumbers the unit. The amount which the first mortgagee, if it so elects, would be required to pay to cause the organization not to proceed to enforce its priority liens shall not include any amounts attributable to late charges, fines, penalties, and interest assessed by the organization of unit owners . . . ” (emphasis added).¹⁵
In addition,
By enabling a first mortgagee to assume responsibility for a unit owner‘s unpaid common expenses, the Legislature has balanced the interests of a condominium association with those of a first mortgagee. On the one hand, the condominium association is assured that it will receive six months’ worth of delinquent common expenses plus all future common expenses, thereby allowing
Construing
4. Appellate attorney‘s fees. In its brief, the association has requested appellate attorney‘s fees and costs incurred as a consequence of its efforts to recover the common expenses due and owing from the Brittons. General Laws
We now conclude that the association is statutorily entitled to recover reasonable attorney‘s fees and costs associated with the proceedings before this court and the Appeals Court.¹⁸ See Yorke Mgt. v. Castro, 406 Mass. 17, 19 (1989). The association is dir-
5. Conclusion. The association may file successive legal actions against the Brittons under
So ordered.
court for such fees and costs. See Costa v. Fall River Hous. Auth., 453 Mass. 614, 633 n.28 (2009); T & D Video, Inc. v. Revere, 450 Mass. 107, 117 (2007).
