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04/09/13
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04/09/13
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7/18/2025 11:24:53 AM
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4/18/2013 9:30:26 AM
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Meetings
Meeting Document Type
Agenda
Document Title
Housing & Redevelopment Authority
Document Date
04/09/2013
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BRIGGS AND MORGAN <br />the services they were providing under the Purchase of Services Agreement other than the <br />separately billed services which were paid for through "Additional Compensation" as <br />contemplated in Article IV.0 of the Purchases of Services Agreements. <br />The Huberty Memorandum next discusses the $60,000 early termination fee included in <br />the Purchase of Services Agreements but concludes that the $60,000 is only payable by the HRA <br />to Landform if the HRA terminates the Purchase of Services Agreement as a matter of right <br />pursuant to the early termination provision set forth in Article XV of the Purchase of Services <br />Agreement and would not be due if the HRA terminates the Purchase of Services Agreement <br />pursuant to Article X as a result of Landform's providing real estate brokerage services to the <br />HRA without a real estate broker's license and thereby violating the second sentence of said <br />Article X. While I agree with Mr. Huberty that this is the better reading of the Purchase of <br />Services Agreement, I note that the language in the April 1, 2011 Contractor's Proposal attached <br />to the 2011 Purchase of Services Agreement does not expressly limit the $60,000 payment to <br />terminations arising under Article XV of the Purchase of Services Agreement. <br />The Huberty Memorandum also concludes that if the HRA terminates the Purchase of <br />Services Agreement pursuant to Article X, the HRA would be relieved of its obligations under <br />Article IV.B.7 (compensation carryover) of the Contractor's Proposal. Again, while I agree with <br />Mr. Huberty's reasoning, I think it is important to note that Article IV.B.7 states that the <br />carryover compensation is due "upon termination of this agreement on or before March 31, <br />2013" without distinguishing whether the termination is: (i) pursuant to Article X of the Purchase <br />of Services Agreement; (ii) pursuant to Article XV of the Purchase and Services Agreement; or <br />(iii) pursuant to the expiration of the Purchase and Services Agreement according to its terms. <br />The Huberty Memorandum does not discuss whether and to what extent the HRA could, <br />if it terminates the agreement, refuse to make Incentive Compensation payments that Landform <br />had arguably earned under Section IV.B of the Contractor's Proposal, but which the HRA has <br />not yet paid because of the provisions in Section IV.B which provide for payment over time. To <br />me, the critical issue in answering that question is whether the Incentive Compensation was <br />intended to compensate Landform solely for services for which a broker's license is required or <br />was intended to compensate Landform for a broad basket of services which may have included <br />some services for which a broker license is required under Minnesota statutes. <br />The Huberty Memorandum also makes a very brief reference to the proposition that the <br />HRA may wish to sue to recover payments previously made to Landform. I do not believe that <br />Minnesota Statutes Chapter 82 directly provides a cause of action, and I do not see a clear legal <br />theory that the HRA could assert to recover past payments, <br />3. Shainess Letter. <br />The Shainess Letter responds to the Unattributed Memorandum and the Huberty <br />Memorandum in four respects. First, it makes the assertion that because the Purchase of <br />Services Agreements expressly state the Landform is not entitled to any compensation for work <br />5 <br />5240409v3 <br />
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