MTM Files Suit Against School Board, All-Star

By John Voket

Town Clerk Debbie Aurelia received official notice October 9 about a lawsuit filed against the Newtown Board of Education and All-Star Transportation by MTM Transportation of Newtown. MTM principle Thomas Adams told The Bee that he is seeking damages because the district is no longer using MTM, which purchased a number of buses to fulfill stipulations of a contract with the school district. MTM also had to buy radio equipment that would be compatible with radios used by the district’s primary school bus provider, All-Star.

According to MTM’s attorney William J Sweeney, Jr, MTM was awarded a five-year contract for services that commenced in July 2009.

“That contract said that MTM had to acquire certain equipment,” Mr Sweeney said of the three 65–72-passenger buses and the five 47-passenger vehicles, as well as the $15,000 in new radio equipment that were acquired to meet the contract requirements. “And then the district turned around and gave that contract [work] to another company.”

Mr Adams said since All-Star began its service in town in July, a number of bus runs that he was previously handling with the new buses were taken over by All-Star, which also provides all student transportation management for the local school district. According to the suit, the contract won by MTM in 2009, which is in effect until 2014, awarded the rights to provide home-to-school transportation, special education, and summer transportation for local students.

A copy of that contract was requested from the district by The Bee, and is posted on line at newtownbee.com, along with a separate document containing contract amendments.

The suit states that the Board of Education, by virtue of its management contract with All-Star, has breached its contract with MTM. The suit also claims that All-Star “knew of the contract relationship between MTM” and the school district, and “tortuously interfered with the contract,” constituting “unfair competition or unfair deceptive acts or practices, or both.”

Mr Adams said the loss of the bus runs he was awarded under the existing contract is costing him “between $90,000 and $100,000 a month.”

He added that once MTM started losing bus runs to All-Star, an All-Star representative helped him sell several of the buses he acquired to fulfill the original contract stipulations. Mr Adams also said the contract between MTM and the district stipulates the district can add or reduce buses as required.

“But that doesn’t mean they can take bus runs awarded to MTM, and give them to All-Star,” Mr Adams said.

Board of Education Chair Debbie Leidlein said she spoke with an attorney for the district to better understand all the transportation contracts, but since she has not seen or reviewed the lawsuit she would offer no official comment at this time.