ROCK FALLS – A Mississippi company has filed a lawsuit against the city of Rock Falls, claiming that the city owes money to the company for a power transformer that the city purchased in 2019.
Howard Industries of Laurel, Mississippi, claims in the lawsuit that the city owes the company $174,230, the balance due to pay off the power transformer.
According to the lawsuit filed June 10 in Whiteside County Circuit Court, Howard Industries submitted a bid to the city of Rock Falls in March 2019 as the city was looking to buy a medium-power transformer when upgrading an electric substation at 400 Ave. A in Rock Falls. The bid included a lump sum payment of $547,000, according to the lawsuit. The city accepted the bid May 7, 2019.
The transformer was delivered Sept. 9, 2020, almost 10 months after it initially was slated to arrive. According to court documents, the transformer was to be delivered in November 2019, but the delivery was delayed as a result of unforeseen circumstances and events, including failure of manufacturing equipment and the loss of employees.
The city has paid $372,769 to the company, leaving a $174,230 balance. Howard issued an application for final payment via a letter dated Sept. 30, 2021. The city rejected the application and proposed a final payment of $45,868, reducing the final payment by $128,362.
Howard Industries maintains that the city is not entitled to set off any amount of claimed damages or additional costs against the final payment, according to the lawsuit.
Howard Industries is seeking a judgment declaring that the city has breached the parties’ agreement by withholding final payment, and said the city is not entitled to any setoff. The company wants a trial and is seeking at least $174,230 to cover the final payment and an amount to compensate Howard Industries for damages resulting from the city’s alleged breach of contact, interest, costs and attorneys’ fees.
A case management conference order was filed June 10. It is set for 9 a.m. Sept. 20.
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