Ryan v. Mary Ann Morse Healthcare Corp.Annotate this Case
The Supreme Judicial Court reversed the decision of the trial court dismissing this case alleging that a Massachusetts assisted living residence's (ALR) charge to new residents of an upfront "community fee" violated the security deposit statute, Mass. Gen. Laws ch. 186, 15B, holding that if an ALR charges upfront fees that are not used to fund distinct assisted living services, it does so in violation of section 15B.
Plaintiff alleged that the community fee, which was intended to cover upfront administrative costs, move-in assistance, an initial service coordination plan, and a replacement reserve for building improvements, violated section 15B because it exceeded the upfront costs allowed by the statute. Defendant filed a motion to dismiss, arguing that ALRs are not subject to section 15B. The trial court granted the motion to dismiss. The Supreme Judicial Court remanded this case, holding (1) ALRs may institute upfront charges beyond those permitted by Mass. Gen. Laws ch. 186, 15B(1)(b) to the extent those charges correspondent to the distinct services enumerated in Mass. Gen. Laws ch. 19D, 13 or to other services specifically designed for ALRs; and (2) further factual development was required to determine whether the fee at issue here was permissibly charged and used for services distinct to ALRs.