Massachusetts High Court Emphasizes Judicial Control Over Class Settlements And Limits Nonparty Challenges

In Ortins v. Lincoln Property Company, the Supreme Judicial Court (SJC) of Massachusetts addressed a post-settlement challenge arising from a class action alleging violations of the Massachusetts security deposit statute and Chapter 93A based on allegedly unlawful apartment application and lock-change fees. Although the plaintiffs had succeeded on liability under Massachusetts General Law Chapter 186, § 15B, the trial court denied summary judgment on the Chapter 93A claims before the parties ultimately reached a class settlement. The SJC’s opinion primarily concerned the administration of class-action settlements and the Massachusetts Interest on Lawyers’ Trust Accounts (IOLTA) Committee’s limited rights concerning residual settlement funds, but the decision contains several points that may be favorable to class action and Chapter 93A defendants.