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SJC Clarifies Ch. 21E Property Damage Statute of Limitations

On January 19th, the Massachusetts Supreme Judicial Court (SJC) ruled in favor of Grand Manor Condominium unit owners in their long battle with the City of Lowell to recover their loss in property value as a result of contamination caused by the city’s operation of a landfill in the 1940s and 1950s on the property where the Condominium was built. Rackemann represents current and former owners of 36 Grand Manor units. Regarding the unit owners’ Chapter 21E, Section 5 property damage claims, the SJC ruled that the plaintiffs’ claims were not time barred because they could not have known that they sustained permanent property damage until the Massachusetts Contingency Plan (MCP) mandated Phase II/III environmental report was submitted to MassDEP by the city in June of 2012. The Phase II/III report determined that removing all of the hazardous waste present on site was prohibitively costly and therefore residual contamination would remain on the property after remediation activities were completed. The SJC vacated the trial court judgment and remanded the case for a determination of damages.

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