Min Romney Governor Kerry Healey Daniel A. Grabauskas Secretary Lt. Govemor J To: Secretary Daniel A. Grabauskas, EDT Through: Commissioner John Cogliaoo, MHO From: Stephen H. Clark, Administrative Law Judge Date: September 30, 2004 Re: Report aod Recommendatio; u d . Si ~ ;41 John Cogliano Commissioner ~~ f'v--r' Y---y ~ ItS I I am pleased to submit for your consideration aod approval the attached report and recommendation. The pending administrative appeal of DeLucca Fence Company, Inc. (DeLucca) arising (rom MHD contract #32047 should be dismissed since DeLucca bas filed an action in Superior Court to litigate tbe same claim and only tbe Attorney General may now conduct tbe litigation of DeLucca's claim. Massachusetts Highway Department· Ten Park Plaza, Boston, MA 02116-3973· (617) 973-7800 To: Secmmy Daniel A. Grabauskas, EOT Through: Commissioner Iohn Cogliano, MHO From: Stephen H. Clark, Administrative Law Iudge ~ Date: September 30, 2004 Re: Report and Recommendation ¥.~ I am please to submit for your consideration and approval the attached report and recommendation. ne peDmg .dmiDistrative .ppeal or DoLo.... FeDce ComplUlY, In.. (DoLo...) arisiag from MUD CODtract ##32047 Iho.ld he dismissed liDce DoLocca h.. med lUI .ctiOD iD Superior Court to Dtigate the same c:Wm lUId ...Iy the Attorney GeDeral may DOW coDduct the DtigatioD of DeLoces'l cJalm. Massachusetts Highway Department· Ten Park Plaza, Boston, MA 02116-3fJ73· (617) .973-7800 STATEMENT OF THE APPEAL DeLucca Fence Company, Inc. (Delucca) appealed from the decision of the claims committee of the Massachusetts Highway Department (Department) concerning Department contract #32047(Contract) entered into by Delucca and the Department on September 10, 2001. Under the Contract DeLucca was to “repair” certain areas of damaged guardrail along highways in District 4. DeLucca claims that the Department ordered it to “remove and replace” a one mile length of guardrail along Rt. 3 and contends that work was different from that described in the Contract. In addition, DeLucca claims that the specifications for certain fittings on which it bid were not adequately described. Specifically, DeLucca contends that payment Item 603.21 “wood offset bracket (Thrie Beam)” (Wood Offset Bracket) was plainly ambiguous and did not refer to the material actually needed in the “remove and replace” work. DeLucca contends that the needed material is typically described by the Department as “Guardrail offset block for steel post-Thrie Beam” (Wood Offset Block For Steel). DeLucca claimed the value of the blocks used was $18.00 each. DeLucca used 1,618 Wood Offset Blocks For Steel in the work. DeLucca’s Statement of Claim, dated May 12, 2003, was filed in the Office of the Administrative Law Judge May 21, 2003. Acting Chief Administrative Law Judge John McDonnell conducted a hearing on the appeal on October 16, 2003, but not make a report. On April 27, 2004 DeLucca filed a complaint in Superior Court, SUCV200401180, asserting claims identical to those raised in its administrative appeal. DISCUSSION The question presented is whether DeLucca’s pending administrative appeal arising under Contract #32047 should be dismissed because DeLucca has filed an action in the Superior Court seeking relief on an identical claim. I conclude that DeLucca’s administrative appeal arising under Contract #32047 should be dismissed. Any action taken by the Department in the hearing or deciding DeLucca’s pending administrative appeal will necessarily conflict with the functions of the Attorney General. As a matter of policy, the Department should not hear and decide appeals that could even potentially interfere with the disposition of identical or related actions in court. The Attorney General has exclusive jurisdiction to appear for the Department “in all suits … in which the commonwealth is a party or interested, or in which the official acts and doings of said [Department] … are called in question, in all the courts of the commonwealth …. All such suits and proceedings shall be prosecuted or defended by him or under his direction.” G.L. c. 12, s.3. In the exercise of his statutory and Constitutional powers, the Attorney General assumes primary control over the conduct of litigation that involves the interests of the Commonwealth; under his powers in so doing he decides matters of legal policy normally reserved to a client in the ordinary attorneyclient relationship. See Feeney v. Commonwealth, 373 Mass. 359 (1977). The Attorney General has the incidental power to compromise or settle matters in which the commonwealth is a party or interested. See 6 Op. Atty. Gen. 1921, p. 169. The Department, through proceedings before its Administrative Law Judge, should refrain from any action that could even potentially interfere with the Attorney General’s conduct of identical or related litigation. 2 DeLucca filed suit in Superior Court against the Department on claims arising under Contract #32047 while its appeal on the same subject matter was pending in the Department. Because of the exclusive power of the Attorney General to conduct litigation filed against the Department, any hearing or disposition of DeLucca’s related administrative appeal will necessarily conflict with the exclusive statutory and constitutional authority of the Attorney General. Practitioners before the Office of the Administrative Law Judge understand that the filing of a court action results in the dismissal of a pending administrative appeals. With respect to the Department, the report of the “20th Annual Conference on Massachusetts Construction Law” states (at page III-5): It should be noted further that wherever a claim is asserted in a court action, the MHD Hearing Officer … will refuse to entertain such claim. Accordingly, no action can be brought in court on any claim which is pending before the MHD Hearing Officer or it will be immediately be dismissed by the MHD Hearing Officer. Accordingly, DeLucca’s appeal under Contract #32047 should be dismissed. RECOMMENDATION The Commissioner should dismiss DeLucca’s pending appeal arising from Contract #32047. Respectfully submitted, Stephen H. Clark Administrative Law Judge Dated: September 30, 2004 3