G4S Technology LLC v. Massachusetts Technology Park Corporation (Lawyers Weekly No. 12-007-17)

COMMONWEALTH OF MASSACHUSETTS   SUFFOLK, ss                                                                                               SUPERIOR COURT CIVIL ACTION 2014-02998-BLS2     G4S TECHNOLOGY LLC, Plaintiff,   vs.   MASSACHUSETTS TECHNOLOGY PARK CORPORATION, Defendant.   MEMORANDUM OF DECISION AND ORDER ON DEFENDANT’S MOTION FOR SUMMARY JUDGMENT             This is a contract-based dispute arising from a state and federally-funded project to design and construct a fiber optic network in western Massachusetts.  Plaintiff G4S Technology LLC (G4S), the design-builder on the project, instituted the lawsuit claiming that  the defendant Massachusetts Technology Park Corporation (MTPC) wrongfully denied a $ 10.1 Million “Request for Adjustment” claim and  improperly withheld an additional $ 4.1 Million based on unfounded claims of late delivery and poor quality of work.  MTPC counterclaimed, alleging   fraud and violation of Chapter 93A.[1]  In an earlier decision, this Court allowed MTPC’s motion for summary judgment as to G4S’s claims, relying on appellate case law which held that an intentional breach by one of the parties to a contract prevented it from recovering on its own contract-based claims so long as that breach was not de minimis.  See Memorandum of Decision and Order dated March 29, 2016 (the March 2016 Decision). Now before the Court are two motions.   The first is G4S’s Motion for Partial Summary Judgment on so much of MTPC’s counterclaim that asserts a 93A violation. [2]  Among other arguments, G4S contends that MTPC is not engaged in “trade or commerce” and thus may not proceed under G.L.c. 93A §11. The second motion is brought by MTPC and seeks judgment in its favor on  both the Chapter 93A claim and the common law claim of fraud.   In opposing that motion, G4S argues that it is entitled to judgment its favor because MTPC cannot demonstrate that it has suffered any damages, particularly in light of the fact that it has already been successful in obtaining this Court’s ruling that G4S cannot assert its own claims.   This Court  concludes that G4S’ Motion must be Allowed, MTPC’s motion must be Denied and that both the 93A and the fraud counts must be dismissed. BACKGROUND MTPC is a state development agency established and organized under Chapter 40J.   As stated in the enabling legislation, its purpose is to “foster the expansion of industrial and commercial activity and employment opportunities in the commonwealth.”  G.L.c. 40J §1A.  One of MTPC’s divisions, Massachusetts Broadband Institute (MBI), is charged with expanding the broadband infrastructure in Massachusetts.  G.L.c. 40J §6B(b).       In 2010, consistent with these purposes, MTPC received $ 45.4 million in federal funding together with additional money from the state to build MassBroadband 123 (the Project).  The federal funds were stimulus money allocated through the American Recovery and Reinvestment Act of 2009. The Project involved the creation of […]

Read more...