Linkage Corporation v. Trustees of Boston University
Massachusetts Supreme Judicial Court
679 N.E.2d 191, 425 Mass. 1 (1997)
- Written by Jennifer Flinn, JD
Facts
Boston University (defendant) entered into a contract in 1988 with Linkage Corporation (plaintiff) for Linkage to manage educational and training programs at the Boston University Corporate Education Center (BUCEC). The contract was signed by Joseph Meng, the university’s vice president for external programs, on behalf of the university. The contract was for a three-year term. At no point did the university disavow Meng’s authority to enter into the contract with Linkage, and Meng was solely responsible for supervising Linkage’s performance under the contract. In 1989, the university entered into a second contract with Linkage for Linkage to manage the university’s professional development program at its Metropolitan College (MET College). In 1991, Meng, on behalf of the university, and Linkage executed a renewal of the BUCEC contract. This new contract included the BUCEC and MET College programs. After the renewal was executed, John Silber, the university’s president, grew hostile towards Linkage and ordered an internal audit. Subsequently, Silber notified Linkage that he was terminating the contract for cause. Linkage filed a lawsuit against the university, alleging that the contract between the parties was renewed and then unlawfully terminated. The university filed several counterclaims. The jury returned a verdict in favor of Linkage, finding that the contract between the parties had been lawfully renewed. The trial court granted the university’s motion for a judgment notwithstanding the verdict but denied the university’s motion for a new trial. Both parties appealed.
Rule of Law
Issue
Holding and Reasoning (Greaney, J.)
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