Ward v. Peabody

405 N.E.2d 973, 380 Mass. 805
CourtMassachusetts Supreme Judicial Court
DecidedJune 4, 1980
StatusPublished
Cited by40 cases

This text of 405 N.E.2d 973 (Ward v. Peabody) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ward v. Peabody, 405 N.E.2d 973, 380 Mass. 805 (Mass. 1980).

Opinion

Kaplan, J.

The Legislature’s Special Commission Concerning State and County Buildings (Commission), of which the named plaintiffs are the members, issued a summons to the respondent Endicott Peabody, a member of the Bar, formerly Governor of the Commonwealth, requesting him to appear and testify before the Commission and to produce certain documents in his possession or control. The respondent did not object to appearing in response to the summons, but he declined to produce the documents specified, although he did not invoke the privilege against self-incrimination and any claim of the attorney-client privilege was abandoned. The Commission accordingly commenced proceedings to enforce the documentary part of the summons, and the matter was heard by a judge of the Superior Court. The judge refused all enforcement but, assuming provisionally that he might be held wrong in that decision, went on to suggest which items of the summons should be enforced and which refused enforcement. On expedited appeal to this court, we entered a brief Order holding that the summons should be enforced according to its terms, except for certain items, as to which the Commission would be entitled at its request to another hearing in the Superior Court where its claims to production could be further considered and ruled on. We stated that a rescript and an opinion or opinions would follow.

1. Commission’s Functions and Program. By early 1978, there had been intimations in the press and elsewhere about corruption in the award and supervision of construction contracts by agencies of government; criminal proceedings had been instituted against certain individuals alleged to be implicated; and revelatory hearings had been conducted by *807 a subcommittee of the Joint Legislative Committee on Post Audit and Oversight. All this led to the adoption of Resolves 1978, c. 5, superseded in effect by Resolves 1979, c. 11, creating the “special commission” which in effect is the present plaintiff. The Commission was directed “to investigate and study as a basis for legislative action [i] the existence and extent of corrupt practices and maladministration concerning contracts awarded no earlier than [January 1, 1968] related to the construction of state and county buildings . . .; [ii] the existence of conditions which tend or may tend to permit the occurrence of said practices and maladministration; and [iii] the existence of limitations on the powers and functions of those charged with the duty of approving, supervising or overseeing said contracts or with the enforcement of laws related thereto.” The stated powers of the Commission included a power to issue process for appearance to give testimony and for production of documents, and where necessary to seek judicial enforcement of such process; also a power to grant immunity from prosecution for testimony before the Commission, contingent on judicial approval.

The Commission had discretion what to investigate and study within the range of the resolve, but there was one stated requirement or duty, namely, that it “shall include” in its investigation and study “consideration of the awarding, implementation and the subsequent events concerning the contract between the firm of McKee-Berger-Mansueto, Inc. [MBM] and the commonwealth relating to the management of construction of certain buildings on the Boston campus of the University of Massachusetts.” The reference was to a contract of 1969 under which MBM, an architectural firm with its principal office in New York, received fees of about $5,000,000 for managing — in place of the State Bureau of Building Construction which ordinarily carried out that function — the construction of the university extension costing some $150,000,000, said to be the largest construction project undertaken by the Commonwealth to that time.

Under way about July, 1978, the program of the Commission, as described by its counsel, was first to consider, *808 through investigation and hearings, the systemic features of existing procedures for the award and supervision of State and county construction contracts, a task falling to phase [iii] of the resolve. This included comparative examination of the procedures used in other States. As will be seen below, the tentative product of this part of the program was a package of legislative proposals introduced on the Commission’s behalf on December 5, 1979. A second part of the program, to some extent overlapping and being prepared simultaneously with the first, was consideration of corrupt practices and the conditions permitting or fostering them — related to phases [i] and [ii].

2. Commissions Proposed MBM Investigation. Regarding MBM’s operations in Massachusetts, including its construction-management contract with the Commonwealth, the Commission wanted to study whether or how, through contacts with or payments or contributions to persons holding official positions or others who might influence such persons, MBM might have been able to prejudice agency actions in the award of contracts or in the supervision of their performance, as well as to prevent official investigation of performance or to procure favorable official report thereof. That information on these topics might feasibly be secured through Commission investigation was suggested by a number of public records (besides many private sources available to the Commission). Notable among these was the trial in 1977 of State Senators Joseph J. C. DiCarlo and Ronald C. MacKenzie in the Federal District Court, at which the respondent testified; also the above-mentioned hearings in 1978 by the subcommittee of the Joint Legislative Committee on Post Audit and Oversight, at which the respondent testified and produced certain documents. As the DiCarlo-MacKenzie trial assumed importance in the judge’s decision below, we add some detail about it, following the account of the evidence in United States v. DiCarlo, 565 F.2d 802, 803-805 (1st Cir. 1977) (affirming convictions), cert. denied, 435 U.S. 924 (1978). 2

*809 In February, 1971, DiCarlo cosponsored a legislative order for an investigation of the university construction project. After the order was filed for adoption, the respondent and Gerald McKee, Jr., MBM’s president, delivered a letter to DiCarlo responding to certain allegations that had been made about the project. DiCarlo, through his intermediary MacKenzie, ultimately demanded of McKee (through one Harding) payment of $40,000 in consideration of a report favorable to MBM. After adoption of the order, appointment of a committee (with DiCarlo as co-chairman) to carry it out, and hearings before the committee, MBM through McKee paid a total of $40,000 to MacKenzie destined for DiCarlo, and McKee was then able in effect to dictate the conclusions of the report issued by the committee. The defendants in the Federal prosecution were convicted of conspiracy to violate, and substantive violations of, the Hobbs Act (extortion affecting interstate commerce) and the Travel Act (use of facilities of interstate commerce for unlawful activities).

3. Summons. MBM had retained the respondent or his firm in order to assist the company to secure the award of the management contract.

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Bluebook (online)
405 N.E.2d 973, 380 Mass. 805, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-peabody-mass-1980.