Basic Services, Inc. v. Government of the VI

CourtSuperior Court of The Virgin Islands
DecidedDecember 10, 2020
DocketST-12-CV-231
StatusUnpublished
Cited by1 cases

This text of Basic Services, Inc. v. Government of the VI (Basic Services, Inc. v. Government of the VI) is published on Counsel Stack Legal Research, covering Superior Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Basic Services, Inc. v. Government of the VI, (visuper 2020).

Opinion

IN THE SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST THOMAS AND ST JOHN *************

BASIC SERVICES INC ) CASE NO ST 2012 CV 00231 ) Plaintiff, ) ) ACTION FOR BREACH OF CONTRACT v ) AND DEBT ) GOVERNMENT OF THE VIRGIN ) ISLANDS ) JURY TRIAL DEMANDED ) We Cite as 2020 VI Super 104U

MEMORANDUM OPINION & ORDER

I W 1|] THIS MATTER comes before the Court on the following

1 Plaintiff’s Motion for Relief from an Order and to Amend Complaint filed May 3 2018

2 Defendant’s Opposition to Motion for Relief from an Order and to Amend Complaint filed June 18 2018'

3 Plaintiff‘s Renewed Motion for Relief from Judgment and Order, filed June 17 2019

4 Defendant 3 Opposition to Plaintiff’s Renewed Motion for Relief from Judgment and Order filed June 24 2019

S Plaintiff’s Second Renewed Motion for Relief from Judgment and Order, filed August 23 2019 and

6 Defendant 5 Opposition to Plaintiff‘s Second Renewed Motion for Relief from Judgment filed September 9 2019 ‘2 Plaintiff, Basic Services, Inc (“Basic”), sued Defendant Government of the Virgin Islands (“Government ), on May 8, 2012, alleging breach of a contract under which Basic agreed to provide professional computer communications, and technical support and services to the Virgin Basic Services, Inc v Government ofthe Virgin Islands Cite as 2020 VI Super 104U Case No ST 12 CV 231 Memorandum Opinion & Order Page 2 of 10

Islands Department of Education( VIDOE”) ' The contract specifies that funding for the services provided by Basic would be subject to approval by the E Rate Program The E Rate Program, also known as the School and Libraries Program of the Universal Service Fund, is a federally funded initiative administered by the Universal Service Administrative Company (“USAC’) Accordingly, the contract states it is contingent upon E Rate funding” and that the Government shall only be responsible for paying ten percent (10%) of the total cost of eligible services and products ’ $3 The E Rate program is administered by the Schools and Libraries Division of USAC and pays up to 90% of funding to assist eligible schools and libraries in paying for intemet and other telecommunication and information services 3 Under the contract, Basic submitted its invoices to VIDOE, which then approved them and forwarded them to USAC, and the Government further contracted that it would assist Basic in securing payment from USAC as requested by Basic 4 While the Government paid its portion, Basic states three invoices remain unpaid'by USAC in an amount totaling $569,759 98 and alleged that the Government was responsible 5 1|4 Basic sought to amend its Complaint,” then the Government moved for summary judgment on August 1, 2017, and Basic sought to oppose summary judgment and cross filed its own motion for summary judgment on August 25, 2017 This Court granted the Government 5 motion on October 17, 2017, and Basic appealed to the Virgin Islands Supreme Court on November 7, 2017 On June 13 2019, the Virgin Islands Supreme Court affirmed the Superior Court 5 Order granting summary judgment for the Government and affirmed the Order denying Basic’s motion to amend 7

115 However, in the interim, USAC issued two letters dated December 27 and December 28, 2017 (collectively, Letters ) to Basic explaining its reasoning for denying Basic funding The Letters were the result of years of investigation These letters explained that funding was denied because a VIDOE employee who was a member of the vendor evaluation committee also had an association with Basic and was paid by Basic during the same years that Basic was selected by the

' Compl 1| 4 2 Contract for Professional Services, Addendum 11 page 15 (fully executed on April 5 2005) attached to Defendant 3 Cross Mot for Summ J 3 U S Department of Education, Other Federal Agency Laws and Programs, https www2 ed gov about/inits ed/non public education other federal programs fee html (last visited Dec 3 2020 4 Basic Serwces Inc v Gov l ofthe Virgin Islands, 7l V I 652, 655 (V I 2019), see also, Pl 5 Cross Mot for Summ J 2 7 ‘ Pl s Cross Mot for Summ J 4 6 On November 30 2015 Basic moved to amend its Complaint to include a claim for quantum meruit This amendment was ultimately denied by this Court on futility grounds as under Vanterpool v Gov I of the Virgin Islands, 63 V1 563 593 (VI 2015) and Cacuamaniv Rover 61 VI 247 252 (V l 2014) the Virgin Islands Supreme Court has held that an equitable remedy like quantum meruit is inappropriate where a legal remedy is available This decision was upheld by the Virgin Islands Supreme Court on June 13 2019 Bane Services Inc, 71 V I at 666 67 Basic Services Inc , 71 V I 652 Basu‘ Services. Inc v Government ofthe Virgin Islands Cite as 2020 VI Super 104U Case No ST [2 CV 231 Memorandum Opinion & Order Page 3 of 10

vendor evaluation committee, and that this conflict of interest compromised the competitive bidding process For this reason USAC refused to pay 8

1l6 As a result of these Letters, on May 3, 2018, Basic filed a Motion for Relief from an Order and to Amend Complaint On June 18, 2018, the Government filed an Opposition to Motion for Relief from an Order and to Amend Complaint After the Virgin Islands Supreme Court 5 ruling denying its appeal of the denial of Basic 3 summaryjudgment and amend complaint motions, Basic moved for a Renewed Motion for Relief from Judgment and Order on June 17, 2019 and the Government filed an Opposition to Plaintiff‘s Renewed Motion for Relief from Judgment and Order on June 24, 2019 On August 23, 2019, Basic filed a Second Renewed Motion for Relief from Judgment and Order, and the Government filed an Opposition to Plaintiff’s Second Renewed Motion for Relief from Judgment and Order on September 9, 2019 W In its motions, Basic seeks relief because the Letters issued afier entry of summary judgment indicate that VIDOE created a conflict of interest situation that compromised the competitive bidding process The wrongful action of the Department caused the nonpayment These letters and additional discovery will provide the necessary proof to support Basic 3 breach of contract claim ”9 It is also Basic 5 contention that the Government violated the competitive bidding rules when it hired an employee of Basic and put that employee without the knowledge of Basic on the vendor evaluation committee” and that this constituted a breach of the covenant of good faith ‘0 Importantly, Basic states in its first motion for relief that they contacted the U S Department of Justice repeatedly as to the reason for its nonpayment and it was told the matter is under investigation ” [1 LEGAL STANDARD {[8 Basic cites Virgin Islands Rules of Civil Procedure Rule 60(b)(2) and 60(b)(6) in its motions as the basis for its relief Rule 60(b)(2) and 60(b)(6) provide that

‘On motion and just terms the court may relieve a party or its legal representative from a final judgment order, or proceeding for the following reasons (2) newly discovered evidence that could not, with reasonable diligence, have been discovered in time to move for a new trial under Rule 59(b) (6) any other reason that justifies relief

'l9 Rule 59(b), referenced above, provides that “A motion for a new trial must be filed no later than 28 days after the entry ofjudgment As these letters were written several months after summary judgment, and Basic filed its first motion in May, Basic did not and could not have motioned for reconsideration within the 28 days provided Thus, V I R Clv P 60(b) is the only proper route for granting relief from judgment

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Basic Services, Inc. v. Government of the Virgin Islands
Superior Court of The Virgin Islands, 2020

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Basic Services, Inc. v. Government of the VI, Counsel Stack Legal Research, https://law.counselstack.com/opinion/basic-services-inc-v-government-of-the-vi-visuper-2020.