Patricia is a licensed broker in Massachusetts who recently sold a residential property. The buyer, Thomas, later discovers that the property has a Chapter 21E petroleum release that was documented in MassDEP's public database before the sale closed. Patricia claims she was unaware of the contamination and never searched the MassDEP database. Thomas files a complaint under MGL Chapter 93A. Which of the following best describes the likely outcome of Thomas's Chapter 93A claim against Patricia?
Correct Answer
B) Patricia may be found liable under Chapter 93A if her failure to check publicly available MassDEP records constitutes a negligent omission rising to the level of an unfair or deceptive practice.
MGL Chapter 93A prohibits unfair or deceptive acts and practices in trade or commerce. Massachusetts courts and the Board have recognized that a licensee's failure to exercise reasonable diligence — including checking publicly available MassDEP records for a known environmental database — can constitute a negligent omission that rises to the level of an unfair or deceptive practice under Chapter 93A, even without intentional fraud. Because MassDEP's database is publicly accessible and checking it is within the scope of a competent licensee's due diligence, Patricia's failure to do so creates meaningful exposure. If found liable, Thomas could recover actual damages plus potentially double or treble damages and attorney's fees under Chapter 93A.
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