STOW — The Select Board announces that the Town of Stow has settled its lawsuit against the engineering firm of Howard/Stein-Hudson (HSH) over the design and management of the Lower Village Reconstruction Project. As part of the settlement, HSH will pay the Town more than $1 million.
The Town and HSH entered into a contract in 2014 to design engineering plans for the Lower Village to address reconstruction of a deteriorating drainage system. The Town’s vision included creating continuous sidewalks, dedicated bike lanes, and permanent medians, thus creating a smoother traffic flow and overall safer business district.
At that time, the Town applied for a MassWorks grant, which was eventually awarded in October 2016. The Town solicited bids for construction, and in December 2017 signed a construction contract with ET&L Corp. for $1.28 million. Construction began in 2018. During construction, disputes arose concerning HSH’s design and management of the project.
The Town terminated HSH’s contract in 2019 and hired Green International Affiliates, Inc. to redesign the project, which was completed by ET&L Corp. in 2019. The Town sued HSH in 2019. Following years of litigation, COVID-19 delays, and formal mediation, and without admitting any liability, the parties have agreed to settle their dispute to avoid further expense and the risk of loss.
The case is Middlesex Superior Court, C.A. No. 1981CV02830.
The settlement funds will be certified by the Town into Free Cash, and will be subject to appropriation at Town Meeting. It is expected that some of the settlement funds will be used to pay off the debt incurred for the project, and to make additional improvements in the Lower Village area.
“The Town is pleased to have reached this settlement agreement, which will avoid a long and potentially expensive litigation,” Select Board Chair Cortni Frecha said. “Thank you to our Town and legal teams for bringing this matter to a close, and thank you to our residents for their patience during this prolonged project.
The Town and Select Board wish to recognize and thank former Town Planner Jesse Steadman, who devoted his time and expertise to the project and lawsuit, and Valerie Oorthuys, who contributed her skills to the project as Assistant Planner, and has been involved in settlement of the lawsuit in her current role as Town Planning Director.
Finally, the Select Board would like to thank Town Administrator Denise Dembkoski for facilitating the settlement with the Town’s attorney, Richard Holland of KP Law, P.C., and for assisting the Town with resolution of the dispute, as well as Green International Affiliates, Inc. and Places Associates, Inc. for their assistance.