JLL Must Face Retaliation Claim Over Subcontractor’s Termination After Reporting Sewage Overflow to Regulators

BOSTON (LN) — WhiteWater Inc. can proceed with a claim that Jones Lang LaSalle Americas Inc. unlawfully retaliated against it for reporting a sanitary sewage overflow to the Massachusetts Department of Environmental Protection, a federal judge ruled May 28.

WhiteWater, which performed wastewater treatment operations at the U.S. Postal Service Middlesex Processing and Distribution Center under a service contract with JLL, reported the August 2025 overflow to MassDEP and the Town of North Reading. The next day, JLL terminated the contract “for cause,” citing the operator’s communications with regulators.

JLL moved to dismiss the Chapter 93A count, arguing the termination was a simple breach of contract and did not rise to the level of unfair or deceptive practices. The court disagreed.

Under Massachusetts law, a breach of the implied covenant of good faith and fair dealing may constitute an unfair or deceptive act, and conduct motivated by retribution has been found actionable under Chapter 93A, Section 11.

Accepting the factual allegations as true and drawing reasonable inferences in WhiteWater’s favor, the court found the complaint alleges sufficient facts to support an inference of retributive animus. The combination of temporal proximity between the regulatory report and the termination, along with JLL’s stated reason for termination, was enough to survive dismissal.

The court noted that while the complaint does not explicitly allege retaliation, it provides a clear timeline: WhiteWater reported the emergency to JLL on August 5, 2025; the pump overflowed after JLL failed to respond; WhiteWater reported the overflow to regulators; JLL and USPS directed WhiteWater to stop communicating with MassDEP and the town; WhiteWater provided formal notice to regulators on August 14; and JLL terminated the contract the following day.

WhiteWater filed its complaint in Worcester Superior Court in December 2025. JLL removed the action to federal court on January 26, 2026, on grounds of diversity jurisdiction. The court denied JLL’s partial motion to dismiss as to Count III.

WhiteWater’s attorney told LitNews the firm is preparing for discovery and expects the case to proceed to summary judgment on the retaliation theory.