V.C.I. International, Inc. v. Wilde

5 Mass. L. Rptr. 97
CourtMassachusetts Superior Court
DecidedMarch 1, 1996
DocketNo. 93221C
StatusPublished

This text of 5 Mass. L. Rptr. 97 (V.C.I. International, Inc. v. Wilde) 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
V.C.I. International, Inc. v. Wilde, 5 Mass. L. Rptr. 97 (Mass. Ct. App. 1996).

Opinion

Gershengorn, J.

INTRODUCTION

This action is presently before the court on defendants,’ Richard Wilde, Joseph Impemba, Charles Ferguson, George Judge, and Robert Marrano, as they constitute the Board of Selectmen for the Town of Burlington (Town), motion for summary judgment. [98]*98Plaintiff, V.C.I., International, Inc. (V.C.I.) brought this action for breach of contract against the Town. Pursuant to a written agreement (contract) between the parties dated September 19, 1989, V.C.I. was to administer the Town’s cross connection control program.

In its complaint, V.C.I. alleges that the Town directed V.C.I. to cease performance under the five-year contract, and that the Town unilaterally terminated the contract. V.C.I. claims $750,000 in damages as a result of the Town’s alleged breach. For the following reasons, the defendants’ motion for summary judgment is ALLOWED.

BACKGROUND

In 1989, the Town commenced a cross connection program. The purpose of the program was to insure that no cross connections exist between the Town’s public water supply system and any waste pipe, sewer, drain, or other unapproved source. According to DEP regulations, the program must include an extensive survey of commercial, industrial, and institutional municipal water users (users) within the Town and further requires that these users install all necessary backflow prevention devices in order to protect the Town’s water supply. This program must be conducted under the supervision of the DEP pursuant to its regulations at 310 C.M.R. 22.22.

On or about September 19, 1989, the Town and V.C.I. entered into a contract for professional services relative to the cross connection program. Pursuant to the contract, V.C.I. was required to supervise the cross connection program and perform or cause to be performed, by contracting plumbers specifically designated by V.C.I. (contractors or designees), certain survey and equipment testing, and otherwise generally assist the Town in the administration of the program. More specifically, the contract provided that all fees charged to water users for surveys, testing, and installation of backflow prevention devices would be paid directly by the individual users to V.C.I., who, in turn, would pay the Town a percentage of fees collected. Under the contract, there was no requirement for the Town to make any payments to V.C.I, directly. In addition, the contract provided that V.C.I. could require individual users to use the services of surveyors and suppliers specifically designated by V.C.I., and to pay those surveyors and suppliers directly for their services.

By letter dated June 27, 1990, DEP informed the Town that it was suspending its grant to the Town of “designee” status, pursuant to 310 C.M.R. 22.22 (10), pending the Town’s clarification of responsibilities under its cross connection program. DEP wanted clarification of the respective responsibilities of the Town and V.C.I. Without the Town having “designee” status, no cross connection control devices could be installed in the Town without prior approval of DEP.

On or about February 6, 1991, DEP again granted the Town "designee” status, subject to certain conditions and recommendations. On or about June 10, 1992, the Town received a cover letter and proposal for continuation of the cross connection program from Beta Programs International, Inc. (BPI). In its June 10, 1992 letter, V.C.I. informed the Town that DEP had reviewed and approved the Town’s backflow program but, as part of the approval, was requiring the Town to make certain changes to the cross connection program which, in turn, would require the Town to make significant changes to its existing contract with V.C.I. Included in the letter to the Town was a detailed program that set forth the changes required.

The Town states that the first significant modification required the Town to bill and collect fees directly from the water users rather than permitting the Town’s contractor to perform the billing and collection functions. This modification, according to Mr. Uly Primeau, President of V.C.I. and B.P.I. (Primeau) was requested by DEP as a result of an opinion from the Chief of the Property Tax Bureau of the Massachusetts Department of Revenue (DOR). That opinion contains the following statement:

Receipts from whatever fees are imposed by boards of water commissioners are municipal revenue and must be paid into the municipal treasury. Such fees cannot be “assigned” or otherwise allocated by the commissioners without an appropriation. G.L.ch. 44, §53. Because such surveys are mandated by state regulation, we believe their cost must be treated as part of the expenses of the water department and funded through the regular budget process.

As a result of the DOR opinion, DEP modified the program by requiring that any charges to water users and funds received which under the contract was handled by the contractors or designers, must now be billed to and received from the users by the Town’s Water Department. In turn, the Town was permitted by the DEP to pay its consultant for services rendered in administering the program. The Town states that the second significant modification to the program by DEP involved a new provision prohibiting any contractor or designee representing the Town who performed surveys or tests from selling backflow prevention devices to any water user in the Town.

By letter dated July 23, 1992, the Town informed V.C.I. that the proposed new contract, reflecting DEP’s required modifications, would have to be put out for bidding under a Request for Proposals, pursuant to the Uniform Procurement Act. Accordingly, the Town issued a Request for Proposals, required by G.L.c. 30B, for consultant services in support of its cross connection program in order to obtain a contract reflecting the policy changes originating from DEP. By letter dated September 14, 1992, V.C.I. informed the Town that it had received the Request for Proposals but was electing not to submit a proposal. On or about September 18, 1992, the bids received for the cross [99]*99connection program consultant contract were opened. On or about December 29, 1992, the Town entered into a contract with Moore and Kling, Inc., of Northborough, Massachusetts to conduct the Town’s cross connection program.

DISCUSSION

I. The Summary Judgment Standard

Summary Judgment shall be granted where there are no material facts in dispute and the moving party is entitled to judgment as a matter of law. Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community National Bank v. Dawes, 369 Mass. 550, 553 (1976); Mass.RCiv.P. 56(c). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue, and that the moving party is entitled to judgment as a matter of law. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). Where the party moving for summary judgment does not have the burden of proof at trial, this burden may be met by either submitting affirmative evidence that negates an essential element of the opponent’s case or “by demonstrating that proof of that element is unlikely to be forthcoming at trial.” Flesner v. Technical Communications Corp., 410 Mass. 805 (1991). Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991). Once the moving party establishes the absence of triable issue, the party opposing the motion must respond and allege specific facts establishing the

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Bluebook (online)
5 Mass. L. Rptr. 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vci-international-inc-v-wilde-masssuperct-1996.