The Massachusetts Appeals Court last month issued an important decision about trusts in Massachusetts courts, on whether a lawyer is needed to represent such entities. The full decision, Braxton v. City of Boston, is included below.
Although I am writing this as a blog post about landlord-tenant law, this issue regarding trusts in Massachusetts courts is equally relevant to other areas of law, especially real estate matters.
What is a Trust?
A trust is a property interest held by one person for the benefit of others. Trusts have become a common means of passing property to others without having to do a formal probate proceeding. A trust is generally run by a trustee, who runs it for the beneficiaries.
Trusts are a common means of holding real estate. When placed into a trust, the trust becomes the owner of the property.
Trusts, importantly, can sue, and be sued in Massachusetts courts.
Trusts in Massachusetts Courts: Get a Lawyer!
Braxton concerned a simple question: does a trust need to be represented by a lawyer in court?
Prior cases make it clear that a corporation or limited liability company (“LLC”) need an an attorney for a court proceeding (except small claims). The rationale is that an organized business is a separate legal entity, and not the same as the individuals who own it. Braxton, to the best of my knowledge, is the first case to address whether this rule also applies to a trust.
In Braxton, the Appeals Court ruled that trusts, like businesses, must also be represented by a lawyer in court. This ruling makes sense: a trust, like a business, is a separate legal entity, and it makes little sense to require a business to have an attorney represent it in court, but not a trust.
Limited Exception: Filing a Notice of Appeal
Braxton recognizes a limited exception to this rule: the filing of a notice of appeal. An appeal is a court case that reviews a lower court decision. To do an appeal, one must file a notice of appeal by a fixed deadline after a final decision in a case is reached. For civil matters, this deadline is generally thirty days. (eviction appeals are ten days, and zoning appeals are twenty days).
A notice of appeal must be filed by this deadline; if it is not, the appeal can get dismissed. In Braxton, a trust wished to appeal a court decision, but no longer had a lawyer representing it. Rather than miss the appeal deadline, it went ahead and filed a notice of appeal without an attorney. The question for the Appeals Court was whether this was an adequate notice of appeal.
The Court ruled that in such a scenario, where a trust no longer had an attorney, it was proper for a trustee to file the notice of appeal on its own, with the caveat that the trust needs to find a lawyer ASAP. This ruling applies to business entities as well: a corporate officer can also file a notice of appeal for a corporation or LLC if it does not have a lawyer.
The rationale of this rule, in my opinion, is the need to meet appeal deadlines. It would be unfair to deprive a trust or business with the right to appeal solely because it does not have an attorney by the deadline date.
A trust, like a business entity, needs a lawyer for court proceedings. Although Braxton recognizes an exception to this rule, this exception appears to be a narrow, limited one. Recent cases show that Massachusetts courts are not tolerant of non-lawyers practicing law. The consequences for doing so can be severe.
If you need legal representation for an eviction, contact me for a consultation.k18P0818