Olympic Cleaning, Inc. v. Massachusetts Bay Transportation Authority

19 Mass. L. Rptr. 648
CourtMassachusetts Superior Court
DecidedJune 9, 2005
DocketNo. 051233BLS2
StatusPublished

This text of 19 Mass. L. Rptr. 648 (Olympic Cleaning, Inc. v. Massachusetts Bay Transportation Authority) 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
Olympic Cleaning, Inc. v. Massachusetts Bay Transportation Authority, 19 Mass. L. Rptr. 648 (Mass. Ct. App. 2005).

Opinion

Burnes, Nonnie S., J.

INTRODUCTION

This case arises out of the decision of the Massachusetts Bay Transportation Authority (“MBTA”), the defendant, to suspend the bidding privileges of Olympic Cleaning, Inc. (“Olympic”). The plaintiff, Olympic, asserts in its complaint that the MBTA suspended Olympic arbitrarily and in bad faith. Olympic also asserts that the suspension was merely pretext for an effort to force Olympic to unionize its employees. The MBTA asserts that it suspended Olympic for health and safety violations and other failures to abide by the contract terms that occurred during performance of its subway cleaning contract. Olympic is before the court seeking a preliminary injunction to prevent the irreparable harm that it says would result if the MBTA is allowed to award new cleaning contracts without allowing Olympic to bid. For the following reasons the plaintiffs motion for a preliminary injunction is DENIED.

BACKGROUND

In 2003, the MBTA solicited bids from the public through its Invitation for Bid process. The MBTA published IFB No. 169-02 (“Subway Cleaning Contract”). Olympic bid on and was awarded the contract to clean several MBTA subway lines. Olympic and the MBTA had already shared a long and uneventful history. Through the course of their fourteen-year relationship Olympic had not received a single OSHA violation, health and safely violation, or a workers’ compensation claim relating to its MBTA contracts.

In the first quarter of 2004, the Service Employees International Union Local 615 (“SEIU Local 615”) complained to the MBTA regarding Olympic’s compliance with the terms of its contract. Although Olympic was not unionized, SEIU Local 615 had gathered Olympic’s employee complaints. Ms. Lauren Jacobs (“Jacobs”) of SEIU Local 615, mailed a letter summarizing the issues to the MBTA’s General Manager, Michael Mul-hern (“Mulhern”). Mulhern testified at his deposition that he also met with individual Olympic employees, who raised new issues and corroborated others regarding Olympic’s performance of the Subway Cleaning Contract. In response to these concerns, Mulhern ordered an audit of the contract to insure compliance. The firm of Mudarri & Mudarri (“Mudarri”) was hired to conduct the audit.

The Audit

Mudarri was engaged to evaluate specific criteria: direct labor and fringe benefits; training specifications; and management policies and internal control provisions of Olympic’s contract with the MBTA. Although the audit was characterized as an investigation into Olympic’s compliance with the business terms of the contract, the audit necessarily implicated safety issues. For example, the contract required Olympic to submit a Material Safely Data Sheet (“MSDS”) for each cleaning chemical used and required Olympic to post the MSDSs at locations where such chemicals were employed.1

Olympic identifies an executive summary prepared by C.J. Royster, dated September 8, 2004, that found in each of the four categories listed, Olympic’s performance was, at least, adequate. An e-mail from Robert Doyle, Superintendent of the Orange Line, appears to endorse Royster’s summary and supports the inference that he also believed Olympic to be in compliance with its obligations. The MBTA has responded that it disregarded Royster’s summary as a superficial and inaccurate summarization of the Mudarri Audit. More importantly to the MBTA, the Royster Summary was in contradiction to the opinions of Robert Johnson, the head of MBTA procurement; Robert Hayden, MBTA’s Assistant General Manager for Safety; and Robert Murphy, the MBTA’s Manager of Safety Training. Johnson assessed that Olympic should have been suspended on October 6,2004. Johnson, Hayden, and Murphy all believed that Olympic should continue to be suspended.

By September 2, 2004, Olympic received a final version of the Mudarri Audit. In Olympic’s motion for a preliminary injunction, Olympic asserts that the Mudarri Audit concluded that Olympic was in compliance with the terms of the contract. A thorough reading of the audit identifies numerous failures of Olympic to abide by requirements of the Subway Cleaning Contract. Specifically, the Mudarri Audit noted that Olympic was using floating personnel instead of dedicated personnel and Olympic failed to comply with reporting requirements, failed to have an Emergency Response Plan, failed to satisfy invoicing requirements, failed to properly post MSDSs, and failed to provide adequate insurance coverage for the cleaning project.

A later summary prepared by Anne Herzenberger, the MBTA’s Chief Operating Officer, also analyzed the Mudarri Audit. Her summary concluded that “Olympic was generally performing as required.” Olympic asserts that the Herzenberger Summary supports its interpretation that Olympic was performing the contract as required, furthering their argument for pretext. Although the summary did note that Olympic was generally complying, the summary specifically identified areas where Olympic failed to comply with the terms of the contract.

MassCosh

The Mudarri Audit also contained reference to SEIU Local 615 allegations of inadequate safety education and training, and identified a study conducted by the Massachusetts Coalition for Occupational Safely and Health (“MassCosh”) into the safety and training of [650]*650Olympic’s employees. Although the Mudarri Audit notes the existence of SEIU Local 615 complaints and the MassCosh reports, the Mudarri Audit accepted as true Olympic’s assertion that its employees had undergone all relevant training. The Mudarri Audit noted that Olympic could not provide documentation of that training. The Mudarri Audit acknowledged the seriousness of the alleged failures and recommended that Olympic should try to exceed the requirements of the Subway Cleaning Contract to alleviate the concerns raised in the MassCosh report. A preliminary version of the MassCosh report was appended to the Mudarri Audit.

On September 21, 2004, the MBTA informed Olympic that it was expanding its review to include the health and safety allegations. The MBTA had become aware of the MassCosh allegations on or about June 28, 2004. Olympic asks this court to infer that the MBTA did not feel the MassCosh allegations were serious or relevant given the delay in actually conducting an investigation.

The MassCosh report described a survey of Olympic employees and raised questions regarding working conditions. The Report determined Olympic was (1) failing to provide adequate training with respect to cleaning up blood and other bodily fluids; (2) requiring employees to use carcinogenic cleaning products; (3) failing to provide proper protective equipment; and (4) failing to provide winter gear. Later review by the MBTA revealed that many of the allegations concerning safety hazards raised by MassCosh were unsubstantiated. The only safety allegation contained in the MassCosh report that was also included in the Mudarri Audit noted the failure of Olympic to provide winter jackets as required by the subway cleaning contracts. The MBTA independently verified this allegation through Richard Hart, the Assistant Superintendent of Station Support Services for the MBTA (“Hart”). The MassCosh report also revealed that Olympic was using a carcinogenic cleaner, “Vandal Mark Remover.” The MBTA realized at this time that Olympic had not submitted a Material Safety and Data Sheet for this cleaning product, in violation of provisions of the contract.

Suspension

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Bluebook (online)
19 Mass. L. Rptr. 648, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olympic-cleaning-inc-v-massachusetts-bay-transportation-authority-masssuperct-2005.