HOLDEN — A jury verdict in favor of Holden against Worcester was affirmed by the Worcester Superior Court, ending a long effort by Holden over the charges for sewer transport charges.
The $14.6 million verdict stemmed from transport charges Worcester levied against Holden.The final judge includes interest and costs that bring the final amount to $26.5 million.
Worcester has indicated an intent to appeal the verdict, so the saga may continue.
After the litigation, which ran for more than nine years, and an eightday trial, the jury last year awarded Holden the funds, but Worcester sought to have the verdict “set aside,” a request the court denied April 26.
“This was a huge win for the town and for our ratepayers,” Holden Town Manager Peter Lukes said.
“It was a long and expensive battle, but we knew that we were right, and in spite of naysayers along the way, we never hesitated to keep fighting on behalf of our ratepayers.”
The continuing legal battle spanned multiple Worcester administrations.
“Frankly, it took nearly 10 years because the city of Worcester refused to recognize the reality of the situation for several years and COVID delayed our trial date by an extra two years. We fully expect that Worcester will further delay our final award through prolonged legal wrangling. But with interest accruing at 12%, we are no longer concerned about the timeline, and we remain more confident than ever in the strength of our case,” Lukes said.
“Once the entire legal process has played out, I expect that the Board of Selectmen, acting as the Water Sewer Commissioners, will likely vote to formulate reduced rates for our ratepayers and probably dedicate much of the award to improving and expanding our infrastructure over the next several years.”
“The DPW is pleased that the jury recognized the unjust sewer charges that have been levied against the town over the years, and that the judge upheld the jury’s verdict and entered the interest calculation that we felt was appropriate,” DPW Director Johin Woodsmall said.
“As for the uses of the money awarded, it certainly remains to be seen as to when the town sees this money. I’m sure rate relief will be one of the uses,” Woodsmall said, adding it would be a while before the town gets to that decision point.
Worcester officials indicated the city would be appealing the court decision.
“The eventual outcome of this case will depend on legal issues, which will be addressed by the Appeals Court or the Supreme Judicial Court. The city is very confident that the trial court judgment will be reversed,” Tom Matthews, media and public relations administrator, said in a statement from the Worcester city manager’s office.
“That aside, Holden has never had any contractual or other relationship with Worcester relating to these sewer transport charges. Its only contract has been with the Commonwealth. Worcester has an entirely separate contract with the Commonwealth by which the Commonwealth has guaranteed full payment to Worcester. If it is ever finally determined that Holden is entitled some payment, which we do not expect, we are confident that it will be paid by the Commonwealth, and not by Worcester,” according to the Worcester statement.
In their own release about the judge’s findings, Holden officials detailed the court decision and legal aspects: “The final judgment followed the Court’s decision issued on December 20, 2022, and in which the Court endorsed the jury’s findings that Worcester was unjustly enriched by more than $14.6 million by its receipt of payments from Holden for excessive wastewater transport charges imposed upon Holden by Worcester and the co-defendant, Department of Conservation and Recreation.
“Specifically, the Superior Court accepted and adopted the jury special verdict findings that (1) Worcester had received a valuable benefit from Holden; (2) Worcester knew or had reason to know that it received this valuable benefit from Holden; (3) it was unfair for Worcester to retain the benefit it received from Holden; (4) Holden did not delay unreasonably before bringing this action against Worcester; and (5) the value of the benefit from Holden unfairly retained by Worcester was $14,604,237.
“In a second decision issued on December 22, 2022, the Court denied Worcester’s motion to set aside the jury verdict, finding that there was more than sufficient evidence to support the verdict in favor of Holden, and rejecting other legal defenses advanced by Worcester.
“Holden subsequently filed a request for assessment of costs and interest. In decisions issued on April 10, 2023, the Court awarded Holden prejudgment interest in the amount of $11,371,958 through December 31, 2022, plus per diem interest of $4,801.39 for each day thereafter until entry of final judgment, which has now occurred.
“At trial, Holden submitted competent, probative and unrebutted evidence that the wastewater transport charges imposed by Worcester were excessive, unreasonable, imposed a non-proportionate share of Worcester’s costs upon Holden, and charged Holden for services it did not use.”
