Neihaus V Maxwell

766 N.E. 2d 566 (2002)

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Nature of the Case

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Facts

Neihaus (P), rented his single-family house to Ds for $2,450 per month, under a written lease covering the period from September 1, 1997, to August 31, 1998. On September 25, 1998, P brought a summary process action against D who, in turn, filed a counterclaim alleging violations of G. L. c. 186, § 15B, and G. L. c. 93A. The court entered judgments for P on both his complaint and Ds' counterclaim. At the inception of the lease, Ds paid P's agent, Hunneman Residential Services, $2,450 representing the last month's rent, and another $2,450 as a security deposit against damage to the premises. Hunneman deposited that money into its 'Security Deposit Account,' a single account at a Massachusetts bank, in which Hunneman held security deposits and last month's rents for all of Hunneman's residential landlord clients. Hunneman maintained a separate landlords' operating account into which it deposited the rent received on behalf of P and from which it paid the expenses associated with P's property, such as the mortgage, property taxes, water and sewer charges, and repair and maintenance costs. D remained in possession after the expiration of the lease and paid rent for August but failed to make a monthly rent payment for September 1998. Hunneman withdrew the last month's rent from the Security Deposit Account and used it as payment. The following month, by court order, Ds made a rent payment of $2,450 for October, as a condition of obtaining a continuance of the summary process trial. The judge ordered that judgment for possession of the property enter for P and he ruled against Ds on their counterclaims. He required P to return Ds the security deposit with interest and to pay Ds interest on the last month's rent which they had advanced at the inception of the lease. Ds appealed.