Massachusetts Highway Department v. Perini Corp.

14 Mass. L. Rptr. 452
CourtMassachusetts Superior Court
DecidedMarch 20, 2002
DocketNo. 004096BLS
StatusPublished

This text of 14 Mass. L. Rptr. 452 (Massachusetts Highway Department v. Perini 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
Massachusetts Highway Department v. Perini Corp., 14 Mass. L. Rptr. 452 (Mass. Ct. App. 2002).

Opinion

van Gestel, J.

These consolidated cases are now before the Court on cross motions for summary judgment and other relief, pursuant to a November 27, 2001 memorandum and order, full familiarity with which is presumed. In that memorandum and order it was directed that:

The Court will proceed to hear all aspects of the August31, 2001 DRB[3] Order #3 on cross-motions [453]*453for summary judgment, principally filed in case No. 01-4452 BLS, but applying to all cases except No. 01-3925 BLS. The hearing on these motions, whether seeking to confirm, vacate or take any other appropriate action in connection with Order #3, will occur on Monday, February 25, 2002, at 10:00 a.m. The Court will reserve the entire morning for these arguments.
The CA/T’s amended complaint and proceedings thereon in'case No. 01-3925 BLS to vacate DRB Order #9 concerning PKC’s utility impact claim will be scheduled after decisions are rendered on the foregoing matters.

On July 9, 2001 and on August 13, 2001, this Court filed memoranda relating to other aspects of several of these cases. Again, full familiarity with each of those memoranda is presumed. Further, because in the August 13, 2001 memorandum the Court set forth its understanding of much of the pertinent background [13 Mass. L. Rptr. 564], the Court will not here repeat everything it said there. It will, however, state again those facts necessary to understand these rulings and set forth what it understands to have happened since August 13,2001, at least insofar as that also may have a bearing on the decisions made here.

ADDITIONAL BACKGROUND4

On March 25, 1999 the CA/T Project and PKC entered into the binding dispute resolution agreement (the “Binding DRB agreement”) which is at the heart of this memorandum. The Binding DRB agreement authorizes a DRB to issue final, binding, and conclusive determinations on certain disputes pertaining to specific claims listed on Exhibit 1 to the agreement.

There are four sections in the Binding DRB agreement that bear reciting here:

3. In an effort to resolve any and all claims for additional compensation or credits (“claims”), which are related to events which occurred prior to January 1, 1999 the Parties agree on the following binding dispute resolution process which will supersede and/or supplement, where appropriate, the dispute resolution process set out in Division 1, Subsection 7.16 et seq., of the Contract.
4. The Parties have compiled a list of claims which, subject to the provisions of Paragraph Seven (7) below, includes any and all claims by the Parties related to events which occurred before January 1, 1999 and which the Parties intend to submit to the following dispute resolution process. A copy of the list is attached hereto as Exhibit 1.
5. The Parties intend to resolve any and all disputes concerning the claims listed on Exhibit 1 through agreement. However, if the Parties cannot resolve a dispute by agreement, the Parties grant to the existing Disputes Review Board and/or, any Supplemental Disputes Review Board established by agreement of the Parties (“DRB”), the exclusive authority to adjudicate any and all such disputes including, but not limited to, any dispute concerning PKC’s claim for delay, inefficiency and/or other overall impact costs.
8. The DRB and/or any supplemental DRB acting under the provisions of this Agreement, shall have the authority to act upon the majority vote of the members of the DRB and, any Order and/or Award issued by the DRB pursuant to a majority vote of its members, shall be valid, final and binding upon the Parties and shall be enforceable by the Superior Court of the Commonwealth of Massachusetts.

A set of Amended Meeting Rules and Procedures Regarding Binding Adjudication was adopted under the Binding DRB agreement. These Rules are intended “to expedite the proceedings.” Among other things, the Amended Meeting Rules provide, in Paragraph 3.OH, that:

Within two (2) days after the date upon which a meeting(s) on a claim is concluded, the DRB shall issue its Award regarding the claim. The Award need not include detailed findings and/or recommendations concerning the claim provided that the Award includes (1) a brief description of the claim, (2) a determination as to liability for the claim, (3) each element of cost constituting an adjustment to the Contract Price for the claim, (4) each element of time constituting an adjustment in Contract Time for the claim, and (5) each element of any other relief found due to a party for the claim.

After a hearing, the Second DRB issued its Order No. 3 on August 31, 2001, in which it rendered findings on numerous issues, including the CA/T Project’s contentions that some of PKC’s filings and parts of the Second DRB’s Order did not comply with the provisions of the Binding Agreement between the parties. According to the CA/T Project, the Second DRB rejected all of the CA/T Project’s arguments and: (1) refused to abide by the “adjudication” of the First DRB as to global application of the “10-10 Markup”: (2) refused to abide by the Project Director’s Decision on the same issue; (3) refused to enforce the Final Determination Requirement with respect to the Quantum Claim, the Revised Quantum Claim or the Subcontractor Claims; and (4) refused to require certification in accordance with the Requirements of the Contract Documents.

The Second DRB, again according to the CA/T Project, did all of this in disregard of the fact that no Final Determination had been issued on PKC’s original or updated Quantum claim; that PKC had not submitted its subcontractor claims to the CA/T Project in accordance with the Contract Documents; and despite the fact that no Final Determination had been issued [454]*454on the subcontractor claims, awarded PKC monetary damages in connection with those claims.

In all, the CA/T Project reports that the Second DRB, in its Order No. 3, made the findings summarized below:

a. Reconsidered the applicability of the First DRB’s decision of the 10-10 Issue. Refused to recognize the First DRB’s decision.
b. Reconsidered the binding effect of the Project Director’s Decision on the 10-10 Issue. Concluded that it was not bound by the Project Director’s Decision.
c. Refused to defer ruling until the Superior Court acted on motions to be heard on August 3, 2001.
d. Reconsidered its jurisdiction over the Quantum Claim because of the lack of CA/T Final Determination. Concluded that it did have jurisdiction over the Quantum Claim despite the lack of a Final Determination.
e. Concluded that PKC’s revision of the Quantum Claim after non-renewal of Second DRB term did not deprive the Second DRB of jurisdiction to hear the revised claim.
f. Considered whether CA/T had been denied its right to a fair hearing due to inadequate notice of revisions to the Quantum Claim. Concluded that the Binding Agreement, Exhibit 2, Paragraph 3.0C, allows revisions to information submitted by a Party, that both Parties have in fact revised information, and, therefore, neither Party would be prejudiced by the hearing.
g.

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Bluebook (online)
14 Mass. L. Rptr. 452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-highway-department-v-perini-corp-masssuperct-2002.