Town prevails in tenants’ suit over cottages

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The town of Essex was facing claims for compensation based on allegations that town officials fraudulently induced tenants to build cottages on municipal-owned land.

The plaintiffs were a group of tenants who occupy portions of town-owned property in a waterfront area known as Conomo Point. Although the town leased the property to the tenants at nominal rents for many decades, they claimed the town owed them for the value of the cottages at the end of the leases, based on a theory that the town had misled them into believing their leases would be forever renewed.

The court ruled in favor of the town, finding that if a cottage was not attached to the town’s land, the sole remedy available to a tenant was the right to remove the cottage at the end of the lease. In cases in which the cottages were affixed to the town’s land, the tenants were granted no relief at the end of their leases.

The attorneys representing Essex also successfully defended the town against claims for reduction in rents for 80 parcels of town-owned land. The tenants claimed that the town violated a special act of the Legislature by charging them rent that exceeds the fair market rental values for the property.

The court found that the town’s process for establishing rents was “more than fair” and consistent with its statutory obligations.

Action: Real property

Injuries alleged: Compensation for cottages

Case name: Pratt, et al. v. Town of Essex

Court/case no.: Essex Superior Court, Nos. ESCV2012-00936 and ESCV2012-02221

Jury and/or judge: Judge Richard E. Welch III

Amount: $0 (defense verdict)

Date: Oct. 16, 2013

Most helpful expert: Mark F. Tyburski of Tyburski Appraisal Corp., Hingham

Attorneys: Gregg J. Corbo and Jeffrey T. Blake, of Kopelman & Paige, Boston (for the defendant)