Garbage truck company, Chicago, say each breached their contract

Back in February, the city of Chicago sued Motiv Power Systems, the California-based manufacturer of an electric trash truck, for $1.3 million in the Cook County Circuit Court system. They did so to try to recoup the cost of a largely inoperative truck that they'd purchased from them in 2014. Just last month, the manufacturer filed their own suit alleging that the city breached its contract with them.

The city's original case was moved from the Cook County Circuit Court to the U.S. District Court for the Northern District of Illinois in March.

In its original filing, the city outlined how they'd originally purchased the electric trash truck partially using grant funds provided by the U.S. Department of Energy in 2014.

Chicago was slated to be the first city in North America to have an all-electric garbage truck. They didn't expect it to give them so many headaches though. In their filing, they noted that they had to deal with repeated software and mechanical problems for the five years they owned the truck.

Motiv responded to the city's lawsuit in May. In their filing, they noted that the city knew that their technology was still in the "experimental" stage when the purchased the truck. They noted that both parties had agreed to work together to hone their equipment.

They later filed a counterclaim accusing the city of breach of contract. They noted that they'd originally been contracted to buy five trucks but that they'd never made any efforts to purchase more than the original one. They pointed out how they'd warned the city that they needed to have five trucks up and running to adequately test and hone their technology.

Motiv says they lost make millions of dollars in revenue because of the failed deal.

In a response filed by the city on June 12, they asked the presiding judge to dismiss Motiv's counterclaim. They noted that they failed to follow their dispute resolution procedure and has forfeited their right to sue. They also argued that they never agreed to purchase five trucks.

Internal and external conflicts that a business finds itself having to address are often complex and can easily take their attention off of growing their company. This can greatly impact their bottom line. A business litigation attorney can help you contain problems early. By quickly resolving them, you can keep your litigation costs low.

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