Malden Settles Multi-year Lawsuit With Construction Company

MALDEN, MA — The city has reached a million-dollar settlement with a construction company in a lawsuit that dates back five years.

Mayor Gary Christenson signed the settlement on Monday, March 2 which agreed to have Malden pay more than $1.2 million to Tufts Construction in three installments throughout the next two years. According to the agreement, the city will pay $347,860 upfront, followed by two additional payments of $450,000 due on July 1, 2026 and July 1, 2027.

Tuft’s original lawsuit against the city claimed that Malden owed approximately $250,000 in unpaid bills for excavation and lead service line work. It accused Malden’s Director of Engineering Yem Lip of intentionally providing negative references to multiple neighboring municipalities in an attempt to retaliate against the company for requesting payment. Tufts claimed that the negative sentiment cost the company more than a dozen contracts worth nearly $20 million.

“Whereas on July 4, 2021, TCI and Tufts commenced a lawsuit in Middlesex Superior Court against the city and Lip for claims of breach of contract, breach of good faith and fair dealing, interference with advantageous/business relationships and prospective contractual relations, and defamation,” the settlement reads.

The settlement’s language emphasizes that it is a symbol that neither party accepts liability for the claims made by both sides in the original lawsuit, and that the agreement was reached to prevent future litigation.

“Within five business days after the effective date, the parties shall file stipulations of dismissal of the lawsuit, with prejudice and without costs other than those costs outlined in this agreement and those issued by the by the court in the lawsuit,” the settlement reads. “Upon filing of the stipulation of dismissal, the city shall make available the first payment sum to Tufts.”

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