RCI Northeast Services Div. v. Boston Edison Co., Civ. A. No. 84-1577-C.
| Decision Date | 09 July 1986 |
| Docket Number | Civ. A. No. 84-1577-C. |
| Citation | 637 F. Supp. 1178 |
| Parties | RCI NORTHEAST SERVICES DIVISION, Plaintiff, v. BOSTON EDISON COMPANY, Defendant. |
| Court | U.S. District Court — District of Massachusetts |
John D. O'Reilly, III, Framingham, Mass., for plaintiff.
Mary Elizabeth Stanton, and William G. Meserve, Ropes & Gray, Boston, Mass., for defendant.
This action for breach of contract was filed by RCI Northeast Services Division ("RCI"), a New York corporation against Boston Edison Company ("Edison"), a Massachusetts corporation. Jurisdiction of this Court is invoked on the basis of 28 U.S.C. § 1332(a) (diversity).
The matter previously was before the Court on cross-motions for summary judgment as to count one. At the hearing of those motions, the Court advised counsel that count one was not appropriate for disposition by summary judgment. Thereafter, the parties submitted count one to the Court for resolution on the basis of the Court's interpretation of the meaning of the language contained in a contract proposal submitted by RCI to Edison which was later incorporated into a purchase order issued by Edison to RCI. The phrase reads: "labor cost rates include all costs, burdens, insurances and taxes applicable, based on current labor rates and are subject to escalation." The parties agree that plaintiff has made appropriate demand on defendant for the payment of $185,535.00, representing increased workmen's compensation insurance costs to plaintiff, and the parties have also agreed that defendant has refused to pay this demand on the basis of defendant's interpretation of the quoted language.
A review of the background of this dispute shows that in 1981 defendant hired plaintiff to perform certain work at defendant's Pilgrim Nuclear Generating Station in Plymouth, Massachusetts. At that time, defendant had sent requests for quotations for a portion of the work to seven different contractors, including plaintiff. The language in issue first appeared in plaintiff's submission to defendant and was later incorporated in defendant's purchase order. Plaintiff claims that the quoted language, particularly the words "subject to escalation," applies not only to wages of plaintiff's employees but also to plaintiff's costs for workmen's compensation insurance and taxes. Defendant contends that only actual wage payments are subject to escalation.
Having in mind that this is a cost plus contract, I find and rule that the intent of the parties, to the extent discoverable, should be given full force and effect, and I rule that the intention of the parties in the instant case was that Edison would pay all costs of plaintiff for plaintiff's performance of its contractual obligation plus...
To continue reading
Request your trial
-
Public Service Co. of NH v. Westinghouse Elec. Corp.
...the principle that ambiguous contractual language is to be construed against the author. See, e.g., RCI Northeast Serv. Div. v. Boston Edison Co., 637 F.Supp. 1178, 1179 (D.Mass.1986) (and citations therein), aff'd, 822 F.2d 199 (1st ...
-
State Street Bank & Trust v. MUTUAL LIFE INS.
...is only appropriate in cases where the parties are in markedly different bargaining positions. RCI Northeast Services Div. v. Boston Edison Co., 637 F.Supp. 1178, 1179 (D.Mass.1986), aff'r, 822 F.2d 199 (1987). Since the parties in the case at bar are both sophisticated business entities, r......
-
RCI Northeast Services Div. v. Boston Edison Co.
...exhibits. After briefing and oral argument, the district court issued its memorandum of decision. RCI Northeast Services Division v. Boston Edison Co., 637 F.Supp. 1178 (D.Mass.1986) (RCI I ). The court held that, under the wording of the contract and in light of the discerned intention of ......
-
Urban v. Fed. Home Loan Mortg. Corp.
...Mass. 572, 578-579 (1995), Cody v. Connecticut General Life Ins. Co., 387 Mass. 142, 146 (1982); RCI Northeast Services Div. v. Boston Edison Co., 637 F. Supp. 1178, 1179 (D. Mass. 1986). However, in so doing this Court must consider all of the circumstances, and the factual record has not ......