WORCESTER – The City of Worcester applied for review by the Massachusetts Supreme Judicial Court in its dispute with the Town of Holden over sewage charges.
The case dates back to 1999.
In 1999, Holden and the Massachusetts Department of Conservation and Recreation (DCR) contracted for transport of Holden’s sewage through Worcester. The contract said that DCR would charge Holden “proportionate applicable transit costs” to use Worcester’s system.
Worcester and DCR entered into an agreement in 2000, which included the rate DCR would pay Worcester for transport of Holden’s sewage.
Holden never executed that agreement, claiming the rate charged Holden for costs unrelated to sewage transport. However, DCR billed Holden every quarter since 2000 based on the fees in the Worcester contract. Holden paid those fees for over 13 years.
The case went to a civil, jury trial in 2022. The jury found that DCR breached its contract with Holden by charging it more than the costs outlined in the 1999 contract. It also found those breaches excused by “waiver, condition precedent, contract modification or impossibility,” according the the background info provided with the judgement of a Superior Court judge in 2922.
The same jury found that Worcester “knowingly received a valuable benefit from Holden, and that it would be unfair for Worcester to retain that benefit.”
The jury awarded Holden $14.6 million in damages for the difference in what it was charged and the services it actually used.
In December 2022, a Superior Court judge rejected both Worcester’s motion to set aside the jury verdict, and Holden’s motion to amend the jury decision with respect to DCR.
Worcester filed for review by the Appeals Court of Massachusetts. on Aug. 18, the court released its opinion, affirming the decision of the Superior Court.
On Sept. 8, attorneys at Prince Lobel Tye, LLP, the firm representing the City of Worcester, filed a Further Appellate Review (FAR) application, asking the Massachusetts Supreme Judicial Court for review.
According to the Massachusetts Appellate Court website, no further activity occurred on the case since that time.
Should the state supreme court rule against Worcester, and the cases continue through the end of 2025, Worcester will owe Holden just short of $30 million, including interest.
