LYNN — The city of Lynn responded to the lawsuit that North Reading Transportation (NRT), the school district’s transportation provider, filed against it last week, denying all of the claims and demanding a jury trial.
The city also submitted six counterclaims against NRT, alleging breach of contract, breach of the covenant of good faith and fair dealing, fraud, intentional misrepresentation, negligent misrepresentation, and unfair or deceptive business practices.
Assistant City Solicitor James F. Wellock said the document stating Lynn’s response to NRT’s complaints and the alleged counts were filed in Superior Court on Tuesday. In the document, Lynn denies every allegation and asks NRT to present strict proof at the time of a trial.
According to the document, NRT sent an invoice to the city every month listing itemized charges, which included the number of buses that ran, the number of bus drivers who drove, and the number of bus monitors.
The city said when schools closed due to the COVID-19 emergency, NRT’s invoices should have reflected a change that included the number of buses that ran, drivers who drove, and monitors, but the invoices did not.
The city entered into a three-year contract for regular education school bus transportation — known as The Big Bus Contract — with NRT in 2018. In 2019, the city forged a three-year contract for transportation services for special needs students, known as the Special Needs Bus Contract.
The document lists an example of an invoice the city received for special education transportation services in April 2020 — when schools were closed due to the pandemic — that totaled $277,472. This invoice was allegedly for running 89 vehicles, including 78 minibuses, in mornings and afternoons for 16 days in April 2020.
“These buses did not run. The city disputes this invoice and those like it,” the document said.
NRT did provide a “COVID-19 Discount” that reduced the invoice to about $216,428.
An attorney for NRT, Alycia Kennedy, said it is undisputed that Lynn has not paid NRT since March of 2020.
“Unlike nearly all other cities and towns across the commonwealth, Lynn is unwilling even to cover NRT’s costs for critical readiness expenses,” she said.
“This situation is entirely of Lynn’s own making, and no effort by it to allege otherwise will change that. NRT’s focus is on being able to get the children of Lynn to school.”
When Gov. Charlie Baker initially announced the closure of schools until the end of the school year, the city said it offered to amend its contract with NRT, and asked that it provide different transportation services such as delivering subsidized meals to Lynn students, but the city said NRT did not respond.
Since no transportation services were requested or required for the next year, the document said that nowhere in Baker’s emergency pandemic orders does he require cities to pay school bus transportation contractors as if they were actually transporting children to school when they weren’t.
Around April 21, the city stated NRT said it was unable to perform transportation services because its buses were uninsured.
About two weeks later, the city received a letter from counsel for NRT stating the city was in default of its contract unless it paid NRT as though it had been receiving full services.
Two weeks after that, the city reportedly received another letter that reiterated the previous letter.
On July 1, City Solicitor George Markopoulos responded to these letters, stating the city was not able to pay for services that weren’t rendered because NRT did not provide the correct documents and information required under new legislation.
“So the city could not pay under the new legislation due to NRT’s own unwillingness,” Markopoulos said.
Markopoulos asked in his letter if NRT was willing and able to continue the performance of its contract, which NRT said it would.
The city said NRT misrepresented its ability to perform under the agreements multiple times when it stated it was ready, willing and able to fully perform, and that this damaged — and continues to damage — the city every day.
Lynn Superintendent Dr. Patrick Tutwiler announced in March that the district was temporarily suspending transportation for all students due to a lack of bus drivers, which he said was a statewide issue. The district presented a new plan a few weeks later, with administrators saying transportation would resume by May 12, but on a staggered schedule.