Madison
54° F
Clear
Clear
Advertisement

Train manufacturer Talgo sues Wisconsin

Published On: Nov 05 2012 03:23:04 PM CST   Updated On: Nov 05 2012 03:25:07 PM CST

MADISON, Wis. -

Train manufacturer Talgo, Inc., filed a lawsuit Friday in Dane County against Gov. Scott Walker and Wisconsin Secretary of Transportation Mark Gottlieb claiming that the state defaulted its legal obligations under its contract with Talgo.

Talgo said the Walker administration on Thursday forced the company to terminate its contract with the state of Wisconsin to build passenger trains to be used by the state for Amtrak's Hiawatha line between Milwaukee and Chicago.

In a news release, Talgo said it has completed the trains under its contract, "but the state has arbitrarily decided not to put the trains in service and has refused to pay Talgo the millions of dollars that it still owes for them."

Talgo said that as a result of the Walker administration's actions, once the court rules in favor of Talgo, the state of Wisconsin will have no further rights under the contract and will lose the almost $50 million it has already spent on the project.

This amount includes only part of the contracted price for the trains, the state's payments to consultants and its investment in a Milwaukee facility for temporary maintenance work, according to the news release.

Talgo said it gave the state of Wisconsin "ample opportunity to avoid this catastrophic loss of taxpayer funds."

Talgo CEO Antonio Perez released a statement regarding Talgo's termination of the contract.

"We invested in the state of Wisconsin by building a manufacturing facility in Milwaukee and creating manufacturing jobs. We built the trains and otherwise performed our obligations under our agreements with the State of Wisconsin. In return, rather than being 'open for business,' the state used every conceivable excuse, whether fair or not and whether lawful or not, to ensure that Talgo did not receive what it bargained for, including by refusing to pay for the trains that Talgo completed. I don't see how any company would in the future choose to do business with the State of Wisconsin when the state has shown that it cannot be trusted to honor contracts that it signed," Perez said in the statement. 

Advertisement
  • Nepal earthquake aftermath

    Omar Havana/Getty Images

    Nepal earthquake: Aftershocks, aftermath

    A major 7.8 earthquake hit Kathmandu mid-day on Saturday. Many houses, buildings and temples in the capital were destroyed, leaving thousands dead or trapped under the debris as emergency rescue workers attempt to clear rubble and find survivors.

  • Baltimore police protests 8

    Alex Wong/Getty Images

    Violence, arrests at Baltimore police protest

    A peaceful demonstration in Baltimore on Saturday came to an end when police in riot gear tried to hold a line, and a few protesters vandalized police cars, threw objects at officers, cursed at them and scuffled with them.

  • PHOTOS: Viewers drop off sensitive documents for Shredfest

    The WISC-TV studio parking lot was busy with hundreds of viewers bringing their sensitive documents to be destroyed as part of Shredfest with the Better Business Bureau Saturday morning.

    A combined 1,295 cars dropped off bags of papers at WISC-TV on Raymond Road and SVA Certified Public Accountants firm on John Q. Hammons Drive.

    News 3 and Better Business Bureau team members unloaded bags of documents from viewers' cars and Pellitteri Waste Systems' Data Destruction team put the papers into the shredding trucks.

Advertisement