TOWN OF HOLDEN v. DEPARTMENT OF CONSERVATION AND RECREATION & Another.

CourtMassachusetts Appeals Court
DecidedAugust 18, 2025
Docket23-P-0794
StatusUnpublished

This text of TOWN OF HOLDEN v. DEPARTMENT OF CONSERVATION AND RECREATION & Another. (TOWN OF HOLDEN v. DEPARTMENT OF CONSERVATION AND RECREATION & Another.) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TOWN OF HOLDEN v. DEPARTMENT OF CONSERVATION AND RECREATION & Another., (Mass. Ct. App. 2025).

Opinion

NOTICE: Summary decisions issued by the Appeals Court pursuant to M.A.C. Rule 23.0, as appearing in 97 Mass. App. Ct. 1017 (2020) (formerly known as rule 1:28, as amended by 73 Mass. App. Ct. 1001 [2009]), are primarily directed to the parties and, therefore, may not fully address the facts of the case or the panel's decisional rationale. Moreover, such decisions are not circulated to the entire court and, therefore, represent only the views of the panel that decided the case. A summary decision pursuant to rule 23.0 or rule 1:28 issued after February 25, 2008, may be cited for its persuasive value but, because of the limitations noted above, not as binding precedent. See Chace v. Curran, 71 Mass. App. Ct. 258, 260 n.4 (2008).

COMMONWEALTH OF MASSACHUSETTS

APPEALS COURT

23-P-794

TOWN OF HOLDEN

vs.

DEPARTMENT OF CONSERVATION AND RECREATION & another. 1

MEMORANDUM AND ORDER PURSUANT TO RULE 23.0

In May 2013, the town of Holden (Holden) commenced this

action against the defendants, the Department of Conservation

and Recreation (DCR) and the city of Worcester (Worcester),

claiming the defendants had overcharged it for the

transportation of Holden's sewage through Worcester to its final

destination at a wastewater treatment facility in Millbury

(treatment facility). Following an eight-day trial in the

summer of 2022, the jury found against Holden on its breach of

contract claim against DCR, but in favor of Holden on its unjust

enrichment claim against Worcester. The trial judge adopted the

1 City of Worcester. jury's findings of fact and their special verdict on the unjust

enrichment claim. 2 See Delaney v. Chief of Police of Wareham, 27

Mass. App. Ct. 398, 401 (1989). The judge subsequently denied

Worcester's motion for judgment notwithstanding the verdict

(judgment n.o.v.) on the unjust enrichment claim and Holden's

cross motion to set aside the verdict on the contract claim.

These cross appeals from the final judgment followed. We

affirm.

Background. We recite the facts the jury could have found,

as supplemented by the judge's findings of fact, reserving

certain details for later discussion. See Tocci v. Tocci, 490

Mass. 1, 3 (2022). In the late 1980s, the Wachusett Reservoir

and its watershed -- the public water supply for over 2.5

million people -- was at risk from failing septic systems. In

2 Answering special questions, the jury found that DCR committed a breach of its agreement with Holden to charge Holden only its "proportionate applicable [wastewater] transport costs" each time DCR billed Holden, but that the breaches were excused by waiver. The jury further found that Worcester knowingly received a valuable benefit from Holden and that it would be inequitable to allow Worcester to keep the benefit. Further finding that Holden had not unreasonably delayed bringing its unjust enrichment claim against Worcester, the jury found that the value of the benefit unlawfully retained by Worcester was $14,604,237. The judge subsequently determined that the jury found, consistent with his instructions, an absence of prejudice to Worcester. Having reserved the declaratory judgment count to himself, the judge made additional findings and ultimately concluded that Holden was not entitled to the declaratory judgment it sought. No aspect of the declaratory judgment count is before us in this appeal.

2 1993, the Massachusetts Water Resources Authority (MWRA), DCR, 3

and the Massachusetts Department of Environmental Protection

(DEP) entered into a consent order requiring the MWRA and DCR to

implement a watershed protection plan for the area. The DEP

imposed a series of deadlines on DCR and the MWRA for the

planning and construction of treatment facilities that would

bring the watershed area into compliance with State and Federal

environmental laws. The facilities plan developed by MWRA and

DCR called for the expansion of sewer systems in three towns

located in the watershed area (Holden, West Boylston, and

Rutland), the transportation of the towns' sewage to the

treatment facility through neighboring Worcester, and

improvements to Worcester's sewer system to accommodate the

increased flow of wastewater through it. The State made

significant contributions to the project.

Around 1996 negotiations over a master sewer use agreement

between the three towns, Worcester, and the DCR began but broke

down; at that point, DCR, aided by the Massachusetts Executive

Office of Environmental Affairs, began negotiating solely with

Worcester for a sewer use agreement. During the negotiations,

3 Many of the relevant documents in this litigation were entered into by the Metropolitan District Commission and other predecessor agencies of DCR. Where nothing turns on this and for ease of reference, we shall refer in this decision to both DCR and its predecessor agencies as DCR.

3 Worcester expressly rejected Holden's transport rate proposal

that included Worcester's actual total flow in the calculus,

deeming it "grossly inadequate" to what Worcester was seeking in

total revenue for the use of its sewer system.

In December 1999, upon DCR's completion of the sewer

expansion project in Holden, DCR and Holden entered into a

contract transferring to Holden the care, custody, and control

of the new sewer components (1999 Holden-DCR contract).

Pursuant to the fourth paragraph of that contract, Holden agreed

"to pay directly to [DCR] all proportionate applicable transport

costs (as finally determined and agreed to by the Town of

Holden) for the transport of sewage . . . to the [treatment

facility], including the costs of sewage transport through the

City of Worcester." But for this "critical" provision requiring

Holden's approval of the transport rate, Holden would not have

signed the agreement. Worcester was not a party to the 1999

Holden-DCR agreement.

By the spring of 2000, "time was running out" to bring the

watershed area into compliance with Federal and State law, and

DCR "was anxious to turn the valve on" allowing sewage to flow

into Worcester. In May 2000, Worcester and DCR entered into a

"Sewer Use Agreement . . . For Intermunicipal Sewer Use" (May

2000 SUA). The agreement referenced the 1993 consent order, the

public interest in expanding the public sewer system, and the

4 financial assistance from the State. Pursuant to that contract,

Worcester agreed to "receive, transport and convey [Holden's]

wastewater . . . from points of connections . . . to the

Treatment Plant." The agreement established a rate calculation

methodology (May 2000 SUA formula) for determining the amount

owed to Worcester for transporting the towns' sewage through it.

The May 2000 SUA formula allowed Worcester to (1) pass along

significant and unproportionate costs to Holden, including

stormwater management and capital costs that had nothing to do

with Holden's use of the Worcester sewer system, and (2)

undercount its actual billable flow (increasing Holden's share

of the costs). 4 For example, the judge found, and Worcester does

not dispute, that Worcester's costs for its sewer system,

consisting of forty-five percent stormwater pipes and fifty-five

percent sanitary sewer pipes, are managed together; and that

although Holden does not use any of Worcester's stormwater

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