These cases involve dueling actions regarding the validity of amendments to the Master Deed of the Kettle Brook Lofts Condominium ("Condominium") in Worcester, Massachusetts and whether certain mortgages held by Defendants Commerce Bank and Trust Company ("Commerce") and Haymarket Capital, LLC ("Haymarket") (collectively, the "Lenders") are subordinate to the Condominium Master Deed and Declaration of Trust.
On October 5, 2008, this Court (Scheier, J.) issued a Decision on Cross-Motions for Summary Judgment (the "2018 Decision"), concluding that the Fifth and Sixth Amendments to the Master Deed were invalid, and that the phasing rights of the declarant Kettle Brook Lofts, LLC ("LLC") expired on July 22, 2015. In the 2018 Decision, this Court (Scheier, J.) declined to enter summary judgment with respect to Count VIII of the Plaintiff Trustees of the Kettle Brook Lofts Condominium Trust (the "Trust") complaint concerning whether certain mortgages held by the Lenders are subordinate to the Master Deed. Following additional discovery and briefing by the parties, and in accordance with the Decision on Plaintiff's Renewed Motion for Summary Judgment on Count VIII, issued this day, the Court ALLOWS Plaintiff's renewed motion for summary judgment on Count VIII. Accordingly,
It is ORDERED, ADJUDGED, and DECLARED that the Fifth and Sixth Amendments to the Master Deed are invalid and did not have the effect of extending the period of Kettle Brook Lofts, LLC's phasing rights or adding the Phase IV units to the Condominium.
It is further ORDERED, ADJUDGED, and DECLARED that the Kettle Brook Lofts, LLC's development and phasing rights reserved to the declarant in the Master Deed expired on July 22, 2015 and thereafter no additional units can be phased into the Condominium without a vote of the unit owners.
It is further ORDERED, ADJUDGED, and DECLARED that any documents or instruments executed and/or recorded by Kettle Brook Lofts, LLC, the authority for which relied on the validity of the Fifth and Sixth Amendments to the Master Deed, are also invalid and of no force or effect.
It is further ORDERED, ADJUDGED, and DECLARED that the mortgage deed dated June 23, 2006 from Kettle Brook Lofts, LLC to WA Funding I, LLC, recorded on June 26, 2006 in Book 39245, Page 366 at the Worcester County Registry of Deeds ("Registry"), and later assigned to Haymarket Capital, LLC by assignment dated April 23, 2009, recorded on April 28, 2009 in Book 44153, Page 39 is subordinate to the Condominium Master Deed and Declaration of Trust.
It is further ORDERED, ADJUDGED, and DECLARED that the mortgage deed dated July 30, 2007 from Kettle Brooks Lofts, LLC to Commerce Bank and Trust Company, and recorded on July 31, 2007 at the Registry in Book 41570, Page 174 is subordinate to the Condominium Master Deed and Declaration of Trust.
It is further ORDERED, ADJUDGED, and DECLARED that the mortgage deed dated June 2, 2008 from Kettle Brook Lofts, LLC to Haymarket Capital, LLC, recorded on March 25, 2009 in Book 43989, Page 1 and the First Amendment to Security Agreement, dated April 9, 2009 and recorded at the Registry in Book 44063, Page 244 are subordinate to the Condominium Master Deed and Declaration of Trust.
It is further ORDERED, ADJUDGED, and DECLARED that the fee interest in the premises as described in the aforementioned mortgages is common area of the Condominium, and as such, is held in common by the unit owners of the Condominium.
It is further ORDERED, ADJUDGED, and DECLARED that this Judgment does not affect, alter, or impair in any way the right, title, and interest in and to the title to property at issue in this case, of or as to any person or entity who has not been expressly named as a defendant and served with process in these consolidated cases.
It is further ORDERED that today's Decision, the 2018 Decision, and this Judgment issued pursuant thereto, dispose of these consolidated cases; the court has adjudicated or dismissed all claims by all parties in these actions and has not reserved decision on any claims or defense.
It is further ORDERED that no costs, fees, damages, or other amounts are awarded to any party in these consolidated cases.
SO ORDERED.
TRUSTEES OF THE KETTLE BROOK LOFTS CONDOMINIUM TRUST v. KETTLE BROOK LOFTS, LLC, COMMERCE BANK AND TRUST COMPANY and HAYMARKET CAPITAL, LLC.; KETTLE BROOK LOFTS, LLC, KETTLE BROOK LOFTS CONDOMINIUM TRUST, AND KETTLE BROOK LOFTS CLASS B CONDOMINIUM TRUST v. STACY S. SPECHT, SUDHAKAR TEEGAVARAPU, and MARC SURETTE, d/b/a EMPIRE PROPERTY PROFESSIONALS, and ALL OTHER UNIT OWNERS OF UNITS at KETTLE BROOK LOFTS CONDOMINIUM