E.D.S. Federal Corp. v. System Development Corp.

8 Mass. L. Rptr. 691
CourtMassachusetts Superior Court
DecidedAugust 7, 1998
DocketNo. 55328
StatusPublished

This text of 8 Mass. L. Rptr. 691 (E.D.S. Federal Corp. v. System Development Corp.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E.D.S. Federal Corp. v. System Development Corp., 8 Mass. L. Rptr. 691 (Mass. Ct. App. 1998).

Opinion

Fremont-Smith, J.

In this case, the plaintiff (“E.D.S.”) was an unsuccessful bidder in a 1981-82 procurement conducted by the Commonwealth of

Massachusetts for a sophisticated, computerized data processing system for the Department of Public Welfare (“DPW”), called the Medicaid Management Information System (“MMIS”). After defendant ("S.D.C.”) was awarded the contract, plaintiff, on June 4, 1982, filed this action, alleging that S.D.C. had procured the contract by means of bribery and fraud, and should have been disqualified from the award of contract. Plaintiff contends that, had this occurred, E.D.S. would have been the successful bidder and been awarded the contract, so that it was wrongly deprived of the millions of dollars of profits it would otherwise have earned, which should now be awarded as damages and trebled. In the alternative, E.D.S. contends that, even had it not been the successful bidder, if it had known that attempts were being made to skew the selection procedure in favor of the S.D.C. by way of defendant’s unfair and deceptive trade practices, it would not have expended a large sum of money to pursue its own bid, so that it should now be reimbursed thrice the amount of its bid expenditures, plus attorney fees and costs.

After considerable discovery, the case was tried before a Master who, after a twenty-four day trial, issued his findings of fact, conclusions of law and decision1 in favor of S.D.C., on June 14, 1996, which was not filed with the Court until January 14, 1998. Following the filing of E.D.S.’s objections to the Master’s findings, S.D.C.’s motion to confirm his award, and the other motions listed above,2 the Regional Administrative Justice for Suffolk County assigned the matter to me for further proceedings, by order dated April 22, 1998. After supplemental briefs and appendices were filed, the Court heard oral argument on the pending motions on July 8, 1998.

The Legal Standard of Review

Massachusetts Rules of Civil Procedure, Rule 53(h)(1) provides that:

The Court shall accept the Master’s subsidiary findings of fact unless they are clearly erroneous, mutually inconsistent, unwarranted by the evidence before the Master as a matter of law or are otherwise tainted by error of law.

As stated in 8 J.W. Smith & H.B. Zobel, Rules Practice, §53.11 (1977).

subsidiary findings of fact must stand, unless the court concludes them to be clearly erroneous or unless on the face of the evidence, as reported or summarized, the underlying evidence did not legally suffice to warrant them.
On the other hand, even though the court may conclude that the subsidiary findings are not clearly erroneous (and are thus impervious to attack), it may nonetheless reach its own conclusions of fact. That is, so long as the master arrived at his ultimate conclusions ‘by inference solely from his subsidiary findings’ the trial court may disregard [692]*692the master’s conclusions; moreover, the appellate court may ignore the trial court’s conclusions as well.

See Bishay v. Foreign Motors, Inc., 416 Mass. 1, 12 (1993) (“The Court may draw its own inferences from the Master’s subsidiary findings”); USM Corp. v. Marson Fastener Corp., 379 Mass. 90, 92 (1979) (where the Master’s ultimate conclusions were based solely on subsidiary findings of fact, it was open to the Supreme Judicial Court, as it was to the trial judge, to reach its own conclusions from the Master’s findings); Jet Spray Cooler, Inc. v. Crampton, 377 Mass. 159, 165 (1979) (where a Master reports his subsidiary findings, a reviewing in court, like the judge below, may draw its own inferences and come to its own conclusions from the Master’s subsidiary findings); Jones v. Wayland, 374 Mass. 249, 255 (1978) (“indeed, where subsidiary findings are reported by the Master, both the trial judge and the Appellate Court are obligated to draw their own inferences from these findings”); Wormstead v. Town Manager of Saugus, 366 Mass. 659, 660 (1975) (same); Mechanics Nat. Bank of Worcester v. Gaucher, 7 Mass.App.Ct. 143, 144 (1979) (where Master’s subsidiary findings of fact constitute a basis for Master’s general findings and conclusions, it was the duly of the Appeals Court to draw its own inferences and conclusions of law from the Master’s subsidiary findings); E.F. Semas Trucking, Inc. v. Mayor of Taunton, 7 Mass.App.Ct. 907, 908 (1979) (subsidiary findings of Master are binding unless they are mutually inconsistent or plainly wrong; however, Court must draw its own inferences from findings to reach its conclusions).

Here, the Master’s subsidiary findings3 were based upon a careful review of the evidence submitted to him at trial, and are not clearly erroneous. Thus, in these subsidiary findings, he found, inter alia, that Robert Clark, between January 1981 and June 30, 1982, was the Commonwealth’s Consultant/Project Director, functioning as a technical advisor to the Medicaid Division, and was a key person in the Commonwealth’s procurement efforts. He was responsible for planning, hiring and directing the MMIS4 project for the Commonwealth and had been delegated the responsibility for preparing the ADP5 and RFP,6 having a staff of twelve people under his direction. (A10, para. 35.) James R. Camicia was a consultant to the DPW and assisted in the procurement and selection process (All, para. 40.) James Errico was in charge of S.D.C.’s marketing efforts, and was responsible to see that the proposal had proper response from the Commonwealth. Part of his duties was to obtain information relative to the Commonwealth’s MMIS contract. (A12, para. 42.) Edward J. Doyle was an S.D.C. officer in charge of its division responsible for its Medicare and Medicaid procurement and operational activities, including S.D.C.’s efforts to procure the Commonwealth’s MMIS. (Al 1-12, para. 41.)

There was an initial luncheon meeting in October, 1984 between Clark and S.D.C.’s Doyle and Errico at Stella’s restaurant in Boston, at which Clark’s employment plans were discussed and it was suggested that S.D.C. might be interested in employing him (A1.3, para. 45; A15, para. 53.) At that time, bidders were not prohibited from having contacts with persons employed by the Commonwealth in connection with the MMIS concerning possible employment. After the RFD was drafted and sent out in early November, 1981, however, such contacts between bidders and Commonwealth employees were prohibited and had to be reported. (A15-18, paras. 54-56, 61.) (Id.) S.D.C. was aware of the prohibition. (A18, para. 61.)

The RFP as originally drafted provided that a violation of this no-contact provision would be cause for rejection of a bidder’s proposal. About this time, Clark, while not being shown to have caused a change in the regulations to provide that a violation of this condition would no longer be sufficient to automatically cause the Commonwealth to reject a bidder’s proposal, was at the very least aware of the amelioration of this requirement. (A16-18, paras. 55-60.)

During the time when the Board was evaluating the bids, between January and late February, 1982, Clark again had lunch with S.D.C.’s Errico at the Marliave restaurant in Boston, at which Clark’s possible employment with S.D.C. was again discussed. (A18, para.

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Related

Jones v. Town of Wayland
373 N.E.2d 199 (Massachusetts Supreme Judicial Court, 1978)
Jet Spray Cooler, Inc. v. Crampton
385 N.E.2d 1349 (Massachusetts Supreme Judicial Court, 1979)
FRASER ENGINEERING CO. v. Desmond
524 N.E.2d 110 (Massachusetts Appeals Court, 1988)
Mechanics National Bank of Worcester v. Gaucher
386 N.E.2d 1052 (Massachusetts Appeals Court, 1979)
Jet Line Services, Inc. v. American Employers Insurance
537 N.E.2d 107 (Massachusetts Supreme Judicial Court, 1989)
USM Corp. v. Marson Fastener Corp.
393 N.E.2d 895 (Massachusetts Supreme Judicial Court, 1979)
Wormstead v. Town Manager of Saugus
322 N.E.2d 171 (Massachusetts Supreme Judicial Court, 1975)
Paul Sardella Construction Co. v. Braintree Housing Authority
356 N.E.2d 249 (Massachusetts Supreme Judicial Court, 1976)
Heyer Products Company v. United States
140 F. Supp. 409 (Court of Claims, 1956)
Bishay v. Foreign Motors Inc.
416 Mass. 1 (Massachusetts Supreme Judicial Court, 1993)
Sardella Construction Co. v. Braintree Housing Authority
329 N.E.2d 762 (Massachusetts Appeals Court, 1975)
E. F. Semas Trucking, Inc. v. Mayor of Taunton
388 N.E.2d 326 (Massachusetts Appeals Court, 1979)

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Bluebook (online)
8 Mass. L. Rptr. 691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eds-federal-corp-v-system-development-corp-masssuperct-1998.