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Case 1:12-cv-00130-JD Document 11 Filed 08/03/12 Page 1 of 7 UNITED STATES DISTRICT COURT DISTRICT OF NEW HAMPSHIRE TOWN OF WOLFEBORO ) ) Civil No. 1:12-cv-00130-JD Plaintiff, ) v. ) ) WRIGHT-PIERCE, ) ) Defendant. ) JOINT PRELIMINARY PRETRIAL CONFERENCE REPORT AND DISCOVERY PLAN PURSUANT TO FED. R. CIV. P. 26(f) Date/Place of Conference: Counsel Present/Representing: Friday, July 20, 2012 2:00 p.m. Rhian Cull, representing Wolfeboro. Seth M. Pasakarnis, representing Wolfeboro. John W. Dennehy, representing Wright-Pierce. Patricia Gary, representing Wright-Pierce CASE SUMMARY Case Summary: Plaintiff, Town of Wolfeboro ( Plaintiff ) engaged Defendant, Wright-Pierce ( Defendant ) to provide engineering services to enable Plaintiff to respond to an Administrative Order issued by the NHDES. The Administrative Order required Plaintiff to, inter alia, submit a Wastewater Treatment and Disposal Plan and to subsequently implement the measures identified in that Plan as it related to Plaintiff s ongoing treatment and disposal of wastewater. Plaintiff engaged Defendant for certain scopes of engineering services pursuant numerous contracts beginning in 2005. Such engineering services included, inter alia, the creation of a Wastewater Treatment and Disposal Plan to be submitted to NHDES by the Plaintiff and the design of the wastewater disposal system(s) identified in that Plan. In the Wastewater Treatment and Disposal Plan produced by the Defendant and subsequently submitted to NHDES by the Plaintiff, Defendant both recommended methods of disposing of Plaintiff s treated wastewater effluent, identified sites on which the disposal system could be constructed, and then recommended the construction of a rapid infiltration basin system ( RIB ). Plaintiff purchased the site identified by the Defendant and constructed a RIB system. Plaintiff s Complaint alleges that operation of the RIB system has damaged the land upon which it is located and the adjacent parcel of land. Plaintiff s Complaint also alleges that the RIB system does not and will not perform at the design criteria (expressed in terms of an annual

Case 1:12-cv-00130-JD Document 11 Filed 08/03/12 Page 2 of 7 average operating volume) identified by Defendant (which was incorporated by NHDES in the original NHDES Ground Water Discharge Permit). The Defendant disputes liability and damages. Plaintiffs Theory of Liability: Plaintiff s theory of liability is as follows: The Defendant performed engineering services that failed to comply with the professional standard of care. Specifically, the Defendant failed to adequately investigate the site conditions before and after recommending the purchase of land for locating a RIB system capable of operating at an annual average volume of 600,000 gallons per day and failed to design an RIB system that met this design criteria. The Defendant breached its contracts with Plaintiff by failing to provide engineering services necessary to fulfill its obligations under the contracts. Defendant negligently misrepresented that a certain site was suitable for the construction of an RIB system capable of operating at an annual volume of 600,000 gallons per day when in fact Defendant had not fully and adequately investigated the site. Defendant negligently misrepresented that a RIB system was the best alternative to address the disposal of effluent without fully and adequately vetting other potential options. Defendant breached the warranty that it provided to Plaintiff that it would produce a complete and definitive Engineering Report to meet current requirements and to perform any and all engineering incidental thereto. Defendant breached the warranty that it provided to Plaintiff that the RIB system located at the site identified by Defendant would be capable of disposing of an annual average volume of 600,000 gallons per day. As a result of the foregoing, Plaintiff has spent over $7.1 million to purchase land and to design and construct an RIB system that does not meet the design criteria. Plaintiff s land has also been irreparably damaged. Defendants Theory of Defense: As of April 19, 2005, the Plaintiff was under an Administrative Order ( AO ) issued by the New Hampshire Department of Environmental Services ( NHDES ) to address issues with its waste water treatment facilities, which included a treatment plant, a 93 million gallon storage lagoon, and a spray irrigation system. The Plaintiff retained the Defendant to assist the Plaintiff in resolving these issues and complying with the AO. 2

Case 1:12-cv-00130-JD Document 11 Filed 08/03/12 Page 3 of 7 The Defendant is an engineering firm specializing in water, wastewater, and infrastructure services. Pursuant to its agreements with the Plaintiff, the Defendant studied how to resolve the wastewater treatment issues, and explained alternatives to the Plaintiff. The Defendant developed several options and priced them out. The RIB system selected by the Plaintiff was a much less costly solution than all the other options. The second least costly option was over $9 million as compared to $7 million for the RIB system, and the Plaintiff selected this option, instead of another more costly option. Furthermore, the Plaintiff retained Weston & Sampson Engineers, Inc. ( WSE ) to peer review the RIB design, and the design passed peer review by WSE. The Defendant prepared a Hydrogeologic Phase 3 report, obtained approval from NHDES for a Groundwater Discharge Permit for the Project, and obtained NHDES approval for the construction of the RIBs. Not only did the design pass peer review by WSE, it was reviewed and approved by NHDES, which indicates the reasonableness of the design and belying the Plaintiff s allegations that the design did not meet the requisite standard of care and somehow breached contract. At all times, the Defendant performed all of its engineering services in accordance with the applicable standard of care and did not breach its contracts with the Plaintiff; and, the Defendant s contracts with the Plaintiff did not contain any warranties. Furthermore, the RIBs suffered a subsequent post design and construction event when it was operated by the Plaintiff at gallons per day levels exceeding the Defendant s reports. Lastly, the Plaintiff was under an AO that required it to select an option to address its waste water treatment capacity and the RIBs work adequately, and even in conjunction with intermittent use of spray fields still presents as the most cost efficient means of addressing the AO, and therefore the Plaintiff has not suffered any damages. Damages: Plaintiff s total damages remain uncertain at this time. Although Plaintiff has realized certain damages already, Plaintiff s damages are ongoing and require expert opinion regarding the calculation of current damages, as well as those damages reasonably certain to be realized in the future. To date, Plaintiff has spent over $7.1 million to purchase land and to design and construct an RIB system that does not meet the design criteria. Plaintiff s land has also been irreparably damaged. Plaintiff will provide a calculation and explanation of damages at the time of its expert disclosure(s), the timing of which is set forth in the discovery plan below. Jurisdictional Questions: There appear to be no questions regarding jurisdiction. Questions of Law: (1) Whether Defendant breached the applicable professional standard of care in providing engineering services to Plaintiff in connection with the investigation, planning, and design of wastewater disposal alternatives and in connection with the investigation, planning, and design of a RIB system. (2) Whether Defendant breached its contracts with Plaintiff by failing to perform the engineering services necessary to fulfill its obligations under those contracts. 3

Case 1:12-cv-00130-JD Document 11 Filed 08/03/12 Page 4 of 7 (3) Whether Defendant negligently misrepresented the suitability of certain sites for the construction of various wastewater disposal options, including the construction of an RIB system. (4) Whether Defendant negligently misrepresented that the construction of a RIB system was the best alternative without fully and adequately vetting other potential options. (5) Whether Defendant provided a warranty for its engineering services and for the performance of the RIB system and whether Defendant has breach the terms of such warranties. (6) Whether the Plaintiff suffered any damages, and if so, whether the doctrine of Betterment would apply. Type of Trial: Jury. Track Assignment: Standard 12 months. Discovery Needed: DISCOVERY The parties require discovery regarding Defendant s investigation and design of wastewater disposal options available to Plaintiff and Defendant s investigation, planning, and design of the RIB system. Discovery will include paper and electronic documents related to Defendant s services and depositions. Mandatory Disclosures (Fed. R. Civ. P. 26(a)(1)): The Parties agree to exchange mandatory disclosures required by Rule 26(a)(1), subject to limited modifications as described below, on or before August 31, 2012. The modifications to Rule 26(a)(1) are as follows: 26(a)(1)(A)(i) No change. 26(a)(1)(A)(ii) In addition to the requirements under this Rule, the parties shall indentify all custodians of ESI (specifically, but not limited to all email users) and the nature of the ESI within the care, custody, or control of those custodians. The parties shall include a description of how electronic files and emails are stored (i.e. locally or central server), a description of any ESI that may not be available because it is located on back up tapes or has been destroyed. 26(a)(1)(A)(iii) Plaintiff will provide a calculation and explanation of Plaintiff s damages concurrent with its expert disclosure(s). 26(a)(1)(A)(iv) No change. 4

Case 1:12-cv-00130-JD Document 11 Filed 08/03/12 Page 5 of 7 Electronic Information Disclosures (Fed. R. Civ. P. 26(f)): The parties do not anticipate any issues with respect to electronic discovery, but will confer, in good faith, to resolve any disputes that may arise regarding electronic discovery. Electronic discovery shall be produced with all relevant meta-data, in electronic form (either native files on disk or in an electronic database such as Concordance). Neither the printing of ESI, nor a file-dump onto a disk without metadata, will be an acceptable form of production. Stipulation Regarding Claims of Privilege/Protection of Trial Preparation Materials (Fed. R. Civ. P. 26(f)): The parties agree that the inadvertent production of any privileged materials will not constitute a waiver of the applicable privilege. Any such materials shall be immediately returned to the producing party or destroyed, and may not be used at trial for any purpose in the absence of a court order. The Parties request that this agreement be made part of the Court s Order regarding discovery. Completion of Discovery: June 1, 2013. Interrogatories: The Parties agree to a maximum of 25 interrogatories (inclusive of parts and subparts) by each party to any other party. The deadline for serving interrogatories is January 11, 2013. Responses shall be due 30 days after service as required by Fed. R. Civ. P. 29, unless otherwise agreed to by the parties. Requests for Admission: A maximum of 25 requests for admission by each party to any other party. The deadline for serving requests for admission is February 15, 2013. Depositions: A maximum of 10 depositions by Plaintiff and 10 by Defendant. Each deposition (other than of named parties) limited to a maximum of 7 hours unless extended by agreement of the parties. Dates of Disclosure of Experts and Experts Written Reports and Supplementations: Plaintiffs: October 19, 2012 Defendants: December 19, 2012 Supplementations under Rule 26(e) due: February 1, 2013 5

Case 1:12-cv-00130-JD Document 11 Filed 08/03/12 Page 6 of 7 Expert disclosures shall conform to the requirements of Fed. R. Civ. P. 26(a)(2). Challenges to Expert Testimony: July 12, 2013. OTHER ITEMS Disclosure of Claims Against Unnamed Parties: If defendant claims that unnamed parties are at fault on a state law claim (see DeBenedetto v. CLD Consulting Engineers, Inc., 153 N.H. 793 (2006)), defendant shall disclose the identity of every such party and the basis of the allegation of fault no later than October 15, 2012. Joinder of Additional Parties: November 15, 2012 Third-Party Actions: November 15, 2012 Amendment of Pleadings: Plaintiffs: November 30, 2012 Defendants: November 30, 2012 Dispositive Motions: To Dismiss: N/A For Summary Judgment: June 1, 2013 Settlement Possibilities: Cannot be evaluated reasonably before January 1, 2013. Joint Statement Re Mediation: Mediation, if any, will occur by June 1, 2013. Witnesses and Exhibits: Will be filed and exchanged consistent with the clerk s notice of trial assignment. Trial Estimate: 2 weeks Trial Date: Two week period with Jury Selection occurring on September 17, 2013. Preliminary Pretrial Conference: The parties request a preliminary pretrial conference with the court before entry of the scheduling order. 6

Case 1:12-cv-00130-JD Document 11 Filed 08/03/12 Page 7 of 7 Other Matters: None. Respectfully submitted, The Town of Wolfeboro, By its attorneys, Date: August 3, 2012 /s/ Seth M. Pasakarnis Hinckley, Allen & Snyder LLP Rhian M.J. Cull (Pro Hac Vice) Seth M. Pasakarnis, Esq. (Bar #18971) 11 South Main Street Concord, NH 03301 Tel: (603)-545-6102 rcull@haslaw.com spasakarnis@haslaw.com Wright-Pierce, By its attorneys, Date: August 3, 2012 /s/ John W. Dennehy DONOVAN HATEM LLP John W. Dennehy, BBO #16166 Patricia B. Gary, BBO #8163 2 Seaport Lane, 8 th Floor Boston, MA 02210 Tel: (617) 406-4500 jdennehy@donovanhatem.com pgary@donovanhatem.com 7