Lowell Housing Authority v. PSC International, Inc.

692 F. Supp. 2d 180, 2010 U.S. Dist. LEXIS 21963, 2010 WL 810980
CourtDistrict Court, D. Massachusetts
DecidedMarch 9, 2010
DocketCivil Action 08-10784-JLT
StatusPublished
Cited by5 cases

This text of 692 F. Supp. 2d 180 (Lowell Housing Authority v. PSC International, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lowell Housing Authority v. PSC International, Inc., 692 F. Supp. 2d 180, 2010 U.S. Dist. LEXIS 21963, 2010 WL 810980 (D. Mass. 2010).

Opinion

MEMORANDUM

TAURO, District Judge.

I. Introduction

This action arises out of an alleged written agreement, under which Defendant PSC International, Inc. (“PSC”) was to provide utility cost-savings consulting services to Plaintiff, Lowell Housing Authority (“LHA”). Plaintiffs Complaint seeks a declaration from this court that the agreement is void and unenforceable against it as a matter of law. Presently at issue is Plaintiff’s Motion for Summary Judgment [# 14], For the following reasons, Plaintiff’s Motion for Summary Judgment [# 14] is DENIED.

II. Background

In late August 2006, PSC’s representative, Bryan P. Yagoobian, contacted LHA Executive Director, Gary Wallace, to discuss a potential relationship between the two entities, by which PSC would provide utility cost savings consulting services, to LHA. 2 Wallace instructed Yagoobian to meet with LHA procurement officer, Judith Beilin. Thereafter, Yagoobian scheduled a meeting with Beilin and informed Wallace of the date. 3 During the meeting, which Wallace did not attend, Beilin decided to involve William Duggan, LHA Deputy Director for Facilities and Management. 4 After this initial meeting, Duggan *183 was the only representative of LHA with which PSC had direct contact. 5

As Deputy Director, Duggan is responsible for management of all LHA facilities. He reports directly to the Executive Director and assumes responsibility for the general operations of LHA when the Executive Director is unavailable. 6 His duties include participation in selection of consultants, supervision of consultants, review and approval of all purchase requisitions for materials, supplies, and equipment, and review and analysis of financial information pertinent to maintenance operations. 7 Of particular note for current purposes is Duggan’s responsibility for procurement of electrical and utility services for LHA. 8

On September 27, 2006, Duggan signed a contract (the “Contract”) with PSC, purportedly on behalf of LHA, 9 which retained PSC as an exclusive representative to obtain utility cost savings for LHA. 10 By the terms of the Contract, PSC was to make recommendations to LHA as to utility cost savings measures. 11 PSC’s fee for such services was to be calculated as a percentage of the cost savings LHA realized as a consequence of accepting PSC’s recommendations. 12

To facilitate performance of the Contract, Duggan also signed Letters of Agency and Data Request Forms, authorizing PSC to obtain information from LHA’s vendors in connection with cost savings evaluations. 13 Duggan had the proper authority to sign such written consents on behalf of LHA. 14 And, though Duggan did not in fact have express authority to enter the Contract in issue on behalf LHA, he told Yagoobian that was authorized to do so. 15

In reliance on the signed Contract and discussions with Duggan, PSC conducted an analysis and recommended to LHA that it engage Direct Energy as a utilities supplier. 16 PSC representatives, William Weitzke and James Coleman, explained the cost savings associated with this recommendation to Duggan in a meeting shortly thereafter. 17 But Duggan later informed PSC that, while LHA did plan to select Direct Energy as a utilities provider, it was making the selection through Power Options, a Massachusetts energy purchasing consortium, rather than through PSC. 18 Duggan does not recall when LHA received a recommendation from PSC or how LHA used such a recommendation. 19 Nor does Duggan recall when LHA consulted with Power Options or if Power Options recommended using Direct Energy. 20

*184 After providing the recommendation, PSC calculated its fee based on the cost savings and requested payment. 21 LHA Executive Director, Gary Wallace, denies any knowledge of any PSC dealings before February 2007, when Weitzke contacted Wallace directly after he failed to convince Duggan to perform under the Contract. 22 Duggan, however, claims to have informed Wallace of the Contract when Weitzke first threatened to bring suit against LHA if it did not perform. Wallace repudiated the Contract in a meeting with Weitzke on February 15, 2007. 23 In so doing, Wallace told Weitzke that Duggan did not have authority to sign contracts on behalf of LHA and that it was a violation of LHA’s procurement policy to engage with a consultant who makes money on a percentage basis on cost savings. 24

Thereafter, PSC initiated arbitration in Connecticut, pursuant to the arbitration clause contained in the Contract. 25 The arbitration has since been stayed by agreement of the parties, pending the outcome of this action in which Plaintiff seeks a declaration that the Contract is void and unenforceable against it, as a matter of law.

III. Discussion

Plaintiff presents three alternative arguments to support its contention that the Contract is void or unenforceable against it, as a matter of law: (1) the Contract violates Mass. Gen. Laws c. 30B, the Uniform Procurement Act (“UPA”); (2) the Contract violates regulations promulgated by the United States Department of Housing and Urban Development (“HUD”) that prohibit contingent or percentage based fees; and (3) even if the Contract is not rendered void by the UPA or HUD regulations, Defendant cannot enforce the Contract against it because Duggan did not have authority to bind LHA to the Contract. For the reasons set forth below, this court disagrees.

A. Summary Judgment

Pursuant to Fed. Rule of Civ. Pro.

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Bluebook (online)
692 F. Supp. 2d 180, 2010 U.S. Dist. LEXIS 21963, 2010 WL 810980, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowell-housing-authority-v-psc-international-inc-mad-2010.