Johnson Turf & Golf Management, Inc. v. City of Beverly

802 N.E.2d 597, 60 Mass. App. Ct. 386, 2004 Mass. App. LEXIS 102
Massachusetts Appeals Court·Decided January 30, 2004·No. No. 02-P-779·Published·Cited by 6 cases

Opinion

Greenberg, J.

Friel Golf Management Company, Inc. (Friel), protests that a consent judgment between its rival, Johnson Turf and Golf Management, Inc. (Johnson), and the city of Beverly,3 awarding Johnson a contract to manage Beverly’s public golf course and tennis courts, violates G. L. c. 30B, the Commonwealth’s public procurement law.4 Consequently, Friel urges that its postjudgment motion to intervene as a party was erroneously denied by a Superior Court judge. We agree.

This, in outline, is the factual context and procedural setting of the dispute. In the fall of 1996, the city published a request for proposals (RFP) to qualified bidders to operate the Beverly Golf and Tennis Club (club) for a five-year period, with a five-year option to renew to be held by the city. As a result of procedural glitches not here relevant, on September 17, 1997, the city published a second RFP, and Johnson and Friel submitted the only two qualified bids. Johnson outbid Friel by $550,000. Even so, the city awarded the contract to Friel, concluding that Johnson had no “recent experience” operating a clay tennis court and lacked sufficient equipment to maintain the golf course in the manner contemplated by the RFP. Some members of the Beverly Golf and Tennis Commission downgraded Johnson’s qualifications, citing “negative references” from other Johnson clients.

Aggrieved by the city’s award of the contract to Friel, Johnson, on December 19, 1997, filed the instant action claiming violations of G. L. c. 30B, breach of an implied contract, violation of the public trust, and conspiracy. It sought money damages and injunctive relief to restrain the city’s award of the contract to Friel. After a hearing on the plaintiff’s motion for a preliminary injunction, a Superior Court judge, recognizing that, without an injunction, Johnson’s remedy would be limited to bid preparation costs unless there was proof of bad faith, see Peabody Constr. Co. v. Boston, 28 Mass. App. Ct. 100, 105-106 [388] (1989), enjoined the city from awarding the contract to Friel until January 8, 1998. On January 9, 1998, after the parties filed supplemental materials, she extended the preliminary injunction against the city with respect to contracting with any prospective club operators. With respect to all but one of Johnson’s claims, however, she ruled that Johnson did not have a strong likelihood of success. She appropriately expressed her concern that “[i]t is not in anyone’s interest that the [club] remain closed” and agreed with a suggestion Johnson’s counsel had made at the hearing that a short-term contract be negotiated between Friel and the city to keep the club running pending completion of the trial. Her order dated January 9, 1998, accomplished that objective. By its terms, it prevented the city from executing a management contract with any entity except for a short period, to expire at the end of February, 1998. She noted that the appropriate ultimate remedy might be a rebidding of the contract in its entirety.

Friel, who had managed the club prior to the first bidding process, maintained the status quo under the order. On February 5, 1998, Friel moved, with the assent of the parties, to intervene in the instant case; that motion was allowed on the same day. By July, 1998, after the city had rebid the contract as suggested by the motion judge, Friel, for the third time, was the recipient of the award. On August 19, 1998, a status conference was held in the Superior Court on the underlying case. The parties agreed that Johnson would amend its complaint limiting its claims to money damages. Johnson, for reasons that do not appear in the record, agreed to drop its pursuit of the management contract. Friel was voluntarily dismissed as an intervener because Johnson limited its claims to money damages. This arrangement was memorialized in a “Proposed Agreement and Procedural Order” approved by another Superior Court judge on September 4, 1998.

Trial of Johnson’s damage claims was bifurcated by order of the judge. Pursuant to Mass.R.Civ.P. 53(b)(2), as amended, 386 Mass. 1237 (1982), the judge referred the liability aspects of the case to a special master. On July 7, 2000, the master, after hearings, found that the city, acting through its mayor, James Scanlon, transgressed G. L. c. 30B in several material respects and [389] that the violations constituted “bad faith.” A judge of the Superior Court adopted the master’s findings and took the next step of scheduling a trial on damages.

At this juncture, the case took an unpredictable course. About thirty days prior to the scheduled trial, the city reversed itself and entered into a “Settlement Agreement” with Johnson which, among other things, awarded Johnson the contract for the operation of the club. It appears that Friel, which was no longer a party to the action, had no notice or opportunity to be heard. In August, 2001, a judgment entered incorporating by reference all of the terms of the agreement. Approximately three weeks later, Friel filed a “Motion to Re-intervene and to Set Aside [the] Judgment.” Another judge, after a hearing, denied Friel’s motion. Friel has appealed from that order.

Analysis. A judge should allow intervention as of right when (1) the applicant claims an interest in the subject of the action, (2) he is situated so that his ability to protect his interest may be impaired as a practical matter by the disposition of the action, and (3) his interest is not adequately represented by the existing parties. Mass.R.Civ.P. 24(a)(2), 365 Mass. 769 (1974).5 We review the motion judge’s decision under a traditional abuse of discretion standard. For a detailed explanation of that standard, in context of a rule 24(a) motion, see Cosby v. Department of Social Servs., 32 Mass. App. Ct. 392, 395 n.8 (1992).

With respect to the threshold question of timeliness, it has been observed that “postjudgment motions to intervene, whether as of right or permissive, are seldom timely.” Bolden v. O’Connor Café of Worcester, Inc. 50 Mass. App. Ct. 56, 61 (2000), and cases cited. In the circumstances here, we think that Friel can justify its failure to intervene earlier because of the September, 1998, agreement approved by a Superior Court judge. The reader will recall that Friel dropped its status as an intervener in the underlying case at that time because Johnson [390] no longer claimed an interest in operating the club. It was only after Friel became aware of the abrupt turnaround evinced in the August, 2001, settlement agreement that its interest in operating the club became impaired. As we stated in McDonnell v. Quirk, 22 Mass. App. Ct. 126, 133 (1986), concerning a motion for postjudgment intervention, “[i]f the underlying action takes an unexpected turn, we perceive no reason why the third party cannot intervene to protect its position.” See Butts v. Zoning Bd. of Appeals of Falmouth, 18 Mass. App. Ct. 249, 254 (1984).

Free access — add to your briefcase to read the full text and ask questions with AI

Johnson Turf & Golf Management, Inc. v. City of Beverly, 802 N.E.2d 597, 60 Mass. App. Ct. 386, 2004 Mass. App. LEXIS 102 (Mass. Ct. App. 2004).

802 N.E.2d 597 (Johnson Turf & Golf Management, Inc. v. City of Beverly) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Town of Falmouth v. Zoning Bd. of Appeals of Falmouth
113 N.E.3d 933 (Massachusetts Appeals Court, 2018)
Bridgeman v. District Attorney for the Suffolk District
30 N.E.3d 806 (Massachusetts Supreme Judicial Court, 2015)
Frostar Corp. v. Malloy
933 N.E.2d 1002 (Massachusetts Appeals Court, 2010)
Town of Barnstable v. Massachusetts Energy Facilities Siting Board
24 Mass. L. Rptr. 550 (Massachusetts Superior Court, 2008)
Leasecomm Corp. v. Akpaffiong
2007 Mass. App. Div. 165 (Mass. Dist. Ct., App. Div., 2007)