Associated Credit Services, Inc. v. City of Worcester

In March of 1983, the city of Worcester (city) invited bids from collection agencies for “[c]ollection of all outstanding inpatient and Emergency Ward accounts as per the requirements and specifications of the Worcester City Hospital.” Associated Credit Services, Inc. (Associated), was the successful bidder and entered into a contract with the city for a one-year period, beginning in April, 1983. The parties extended the contract for a second year through April, 1985.

The relevant terms of the contract between the city and Associated indicated that Associated was to “provide and deliver to the…