Veal v. Commissioner of Boston Centers for Youth & Families

CourtDistrict Court, D. Massachusetts
DecidedMarch 10, 2022
Docket1:21-cv-10265
StatusUnknown

This text of Veal v. Commissioner of Boston Centers for Youth & Families (Veal v. Commissioner of Boston Centers for Youth & Families) 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
Veal v. Commissioner of Boston Centers for Youth & Families, (D. Mass. 2022).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

WILLIAM VEAL, * * Plaintiff, * * v. * * COMMISSIONER OF BOSTON CENTERS * Civil Action No. 21-cv-10265-ADB FOR YOUTH & FAMILIES, et al., * * Defendants. * * * *

MEMORANDUM AND ORDER

BURROUGHS, D.J. Plaintiff William Veal (“Plaintiff”) alleges that the City of Boston (“City”), former City Mayor Martin Walsh (“Walsh”), Boston Centers for Youth and Families (“BCYF”), BCYF Commissioner William Morales (“Morales”), former Deputy BCYF Commissioner Michael Sulprizio (“Sulprizio”), City Operations Manager Lorna Bognanno (“Bognanno” and together with the City, Walsh, BCYF, Morales, and Sulprizio, the “City Defendants”), Plaintiff’s former accountant, Thomas Bowe (“Bowe”), Bowe’s accounting firm, Thomas Bowe CPA (“Bowe CPA”), and Plaintiff’s former employee, Bonnie Wallace (“Wallace”), violated several state and federal laws in connection with a lease agreement that allowed Plaintiff to operate a community center. Currently pending before the Court are three motions to dismiss the amended complaint. [ECF Nos. 27 (Bowe and Bowe CPA), 29, (Wallace), 31 (City Defendants)]. For the reasons set forth below, the motions are GRANTED. Plaintiff’s federal law claims are dismissed with prejudice and the remaining state law claims are dismissed without prejudice. I. BACKGROUND A. Factual Background The following facts are drawn from the amended complaint, the allegations of which are taken as true for purposes of evaluating the motions to dismiss. See Ruivo v. Wells Fargo Bank,

766 F.3d 87, 90 (1st Cir. 2014). 1. The Agreement

Plaintiff’s allegations center around an oral agreement that permitted him to operate a neighborhood community center, Mattapan Community Centers, Inc (“Mattapan”). [ECF No. 26 (“Am. Compl.”)]. In 2003, Plaintiff, Mattapan, and Bognanno, who was acting on behalf of the City and BCYF, entered into an oral contract where the City would lease Plaintiff a building for $0 and Plaintiff would use the building to run a community center (the “Agreement”). [Id. ¶¶ 28, 35, 37]. The Agreement was set to expire in 2023. [Id. ¶¶ 34–35]. Plaintiff alleges that Bognanno represented that she had the authority to enter into the Agreement on behalf of the City and BCYF. [Id. ¶ 37]. Under the Agreement, Plaintiff and Mattapan would manage the building and hire the program’s employees. [Am. Compl. ¶ 29]. The City would be responsible for utilities, maintenance, and repairs for the building. [Id. ¶ 30]. The City would not receive any commission from the revenue generated by Mattapan and Plaintiff would not take any salary for his work until Mattapan was “financially sound.” [Id. ¶¶ 29, 30, 32]. Plaintiff would also run all of Mattapan’s programs, manage payroll, maintain bookkeeping, and obtain liability and other insurance. [Id. ¶¶ 31–33]. Before terminating the Agreement in 2023, BCYF and the City were supposed to hold a meeting to determine if there was just cause for ending the lease. [Id. ¶ 34]. The Agreement was honored for over a decade, during which time Plaintiff instituted several successful programs, including day care, afterschool care, summer camp programs, and basketball leagues. [Id. ¶ 20]. In 2014, Walsh was elected the City’s Mayor. [Am. Compl. ¶ 42]. At that time, Plaintiff asked Bognanno if the Agreement could be put in writing because he was concerned that Walsh

would not be aware of an oral contract put in place under the previous administration. [Id. ¶ 43]. Bognanno said that there was no need to put the Agreement in writing. [Id.]. In 2015, when Sulprizio was appointed as Deputy Commissioner of BCYF, Plaintiff again asked Bognanno to put the Agreement in writing and she again said it was not necessary. [Id. ¶¶ 44, 45]. Then, in 2016, Morales was appointed BCYF Commissioner. [Id. ¶ 46]. 2. The New Community Center Agreements

In 2016, Bognanno and Morales, under orders from the City, Walsh, and Sulprizio, held a meeting with Plaintiff and other community center leaders. [Am. Compl. ¶ 49]. At this meeting, Morales and Bognanno announced a plan to bring all community centers “under one umbrella” where all funds would be held in one account and the City and BCYF would implement contract changes. [Id. ¶ 53]. Under the plan, the community center contracts already in place would not be renegotiated, but other “serious changes” would be made to them. [Id. ¶¶ 53, 60]. Upon hearing this plan, Plaintiff protested the proposed changes and referenced his Agreement, which was in place until 2023. [Id. ¶ 54]. Bognanno and Morales allegedly agreed that the Agreement should be honored, and Plaintiff relied on this representation. [Id. ¶¶ 54–55]. At this meeting, Plaintiff also revealed that he would begin taking a salary in January 2018 because Mattapan was finally financially sound and “generating great profits.” [Id. ¶¶ 56–57]. Under the new plan, several specific changes regarding the City’s community centers would be implemented including that (1) Mattapan and all other community centers would need to perform background checks on employees and pay for an annual audit to be performed by the City and Sulprizio, [Am. Compl. ¶¶ 61, 62]; (2) Plaintiff and Mattapan would have to pay for some utilities, repairs, and maintenance, [id. ¶ 63]; (3) Plaintiff would also have to take out a one-million-dollar insurance policy for liability, property damage, and workers’ compensation,

which also needed to cover the City and BCYF, [id.¶ 64]; and (4) BCYF would begin collecting money from the community center programs and rental fees for City buildings, [id. ¶ 67]. Ultimately, once these changes were implemented, the Agreement for a $0 lease would no longer be in effect. [Id. ¶ 68]. Plaintiff protested the termination of the Agreement and requested that the oral agreement be put in writing or that the City, BCYF, Bognanno and Morales negotiate a new contract in good faith. [Id. ¶¶ 68–69]. Plaintiff asserts that after making this request Morales and Bognanno assured him that a written contract would be provided in the next few months, but it never arrived. [Id. ¶ 71]. Instead, a few weeks later, the City Defendants began directing their employees to withhold funds from Mattapan. [Id. ¶ 72]. 3. Involvement of Wallace, Bowe, and Bowe CPA

Bowe and his company, Bowe CPA, served as the accountant for Mattapan. See [id. ¶ 74]. During a heavy snowfall in 2015, the roof of a commercial property owned by Plaintiff’s sister collapsed. [Id. ¶¶ 75–77]. Plaintiff approached Bowe to tell him that in October 2015 the Mattapan Board had voted to give Plaintiff’s sister a “first mortgage.” [Id. ¶ 78]. Plaintiff asked Bowe if this was legal, and Bowe advised him that the Board should do another vote without Plaintiff present. [Id. ¶ 79]. The Board, without Plaintiff, again voted to grant the first mortgage as a fundraising mechanism for Mattapan. [Id. ¶ 80]. The mortgage was never executed or recorded. [Id. ¶ 81]. At the time of the Board vote, Wallace was the bookkeeper for Mattapan. See [id. ¶¶ 9, 82–83]. At some point, Bognanno, Sulprizio, and Morales contacted Bowe and Wallace to tell them that they were looking for a way to terminate the Agreement and asked if they had any information that would be useful for that purpose. [Am. Compl. ¶ 82]. In response to that request, Bowe and Wallace told Morales, Bognanno, and Sulprizio about the mortgage for

Plaintiff’s sister. [Id. ¶ 83]. The City, Morales, Bognanno, and Sulprizio then relied on that information to terminate the Agreement. [Id.]. Plaintiff asserts that Bowe was promised contracts with other BCYF community centers if he provided information that could be used to terminate the Agreement. [Id. ¶¶ 84–85]. The City Defendants similarly promised Wallace that she could keep working with the City and BCYF after the Agreement was terminated. [Id. ¶ 85].

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Veal v. Commissioner of Boston Centers for Youth & Families, Counsel Stack Legal Research, https://law.counselstack.com/opinion/veal-v-commissioner-of-boston-centers-for-youth-families-mad-2022.