Kokomo Tribune; Kokomo, Indiana

Local News

January 9, 2013

Getrag sued for construction work

Walbridge seeking payment for Tipton work

Tipton — A breach of contract lawsuit against German transmission manufacturing company Getrag has been filed in Tipton Circuit Court by the construction manager for the failed plant in Tipton County seeking millions of dollars for work done.

Walbridge Aldinger Co. filed the lawsuit Tuesday against Getrag KG, Getrag International and Getrag Transmission LLC involving the planned joint manufacturing plant with Chrysler at the intersection of U.S. 31 and Ind. 28.

The proposed $580 million plant was never completed and was recently purchased by Chrysler Group LLC last year from W.W. Reynolds, which purchased the property from a trust formed by a bankruptcy court in Michigan.

In the lawsuit attorneys for Walbridge indicate a substantial portion of the damages being sought will be distributed to compensate subcontractors employed by Getrag and have not been paid. The subcontractors are located in Indiana, Ohio and Michigan.

Walbridge has lost “tens of millions” of dollars, much of the money would have gone to pay subcontractors, the lawsuit states.

“On numerous occasions, by express statements (both written and verbal) and by its conduct, Getrag KG guaranteed Getrag Transmission LLC’s obligations,” the lawsuit claims. “Getrag Transmission LLC has failed to pay for work performed by Walbridge.”

Getrag KG has refused to pay Walbridge maintaining that Getrag Transmission LLC was responsible for the payments.

Included in the lawsuit is six specific purchase orders submitted by Walbridge to Getrag for payment from April 2007, through October, 2008 in the amount of $118.5 million. Michigan attorney Thomas Wienner representing Walbridge declined comment Thursday when asked if all, part or none of the purchase orders has been paid.

The lawsuit states in 2007 Getrag KG formed Getrag Transmission LLC which they describe as a “shell” limited liability company that relied on Getrag KG for funding to conduct business.

In 2006, Getrag KG asked Walbridge to provide construction management services for the Tipton plant which included obtaining bids, hiring and paying subcontractors.

“Getrag KG represented that it was financially sound and fully capable of paying for construction management services,” the lawsuit states.

According to the lawsuit Getrag KG paid the submitted invoices from Walbridge for a period of time.

Because of a funding disagreement between Chrysler and Getrag, a temporary work stoppage was issued on the project Dec. 1, 2007.

“On the same day as the work-stop directive, unknown to Walbridge, Getrag KG removed the vast majority of cash from Getrag LLC’s bank account, approximately $28 million,” the lawsuit states.

In Aug. 2008 another dispute developed between Chrysler Group and Getrag KG in which Chrysler indicated it was unable or unwilling to expend additional resources to complete the project. With that knowledge Getrag and Getrag Transmission directed Walbridge to continue work.

Another $16 million was removed from the Getrag LLC bank account on Sept. 2, 2008 which left Getrag LLC without adequate capital to carry on its business purposes, the suit states.

Walbridge was informed on Oct. 9, 2008 by Getrag KG and Getrag Transmission to continue the project and promised to pay the invoices. A stop work directive was issued Oct. 18, and in November Getrag Transmission LLC filed for bankruptcy.

“In response to demands for payment, Getrag KG advised Walbridge that the purchase orders were issued by Getrag LLC, not Getrag KG, and that Getrag KG had no obligation to pay Walbridge.

1
Text Only | Photo Reprints
Local News
  • Spirits high at Brickyard 400 SPEEDWAY – Despite threatening skies and chances of rain, fans at the Brickyard 400 were not disheartened by the forecast. Brickyard 400 race day dawned with rain and fog, and the sun broke through the clouds at mid-morning. Fans expected the race to

    July 27, 2014

  • NWS - KT072614 - Five Below Grand Opening - pic Five Below opening draws crowds

    Mary Martin is the director of marketing and business development for Markland Mall and, with four grandchildren, she's also a consumer looking for cost-effective deals which still leave her — and the kids — feeling satisfied. Martin was able to purc

    July 27, 2014 1 Photo

  • Mud battle 01 Mud Battle at Oakbrook Church challenges participants

    Challenges are nothing knew to Army Specialist Anthony Walton. An Afghanistan veteran, who was injured in 2011, Walton has endured some of the worst conditions imaginable. While in Afghanistan, Walton was shot more than 30 times in his left arm durin

    July 27, 2014 3 Photos

  • Indiana fruit crops take another weather beating BEDFORD, Ind. (AP) — The polar vortex that plunged Indiana into a deep freeze in January has taken a toll on the state's peach crop, and an April cold snap has done the same for apples. Orchard owners are bringing in peaches from out of state and sa

    July 27, 2014

  • 931 business 02 Opening of new US 31 appears to have had little effect on local business The new U.S. 31 bypass came with a litany of questions for local businesses. How would the changes in traffic patterns affect sales? How long would it take to see the full effect from that change in traffic patterns? What is the long-term prognosis f

    July 27, 2014 3 Photos

  • 1969 Kokomo grads share space stories On July 20, 1969, astronaut Neil Armstrong stepped down the ladder of the lunar module “Eagle” and uttered those immortal words, “One small step for man, one giant leap for mankind.”Best friends Dave Hudson and Greg McCauley, who had just graduated f

    July 27, 2014

  • first dirilyte Dirilyte alloy: Definitely not a Kokomo first As with many of the so-called City of Firsts’ inventions, Dirilyte was definitely not a Kokomo first, Dave Broman, executive director of the Howard County Historical Society, said.“Dirilyte is a little more clear-cut,” Broman said of research in the

    July 27, 2014 1 Photo

  • Ride to help fight breast cancer WABASH — The Moonshine Cowboys Ride for a Cause will be Saturday at Scotty’s Bar, 780 Manchester Ave. Registration begins at 10 a.m. and kickstands are up at noon.The cost is $20 per person, and proceeds will go to fight inflammatory breast cancer. I

    July 27, 2014

  • SCP KT 072714 Innovation Symposium pic IUK Innovation Symposium receives grant for 2015 program A grant from the Indiana University Women’s Philanthropy Council will allow more students to participate in IU Kokomo’s Innovation Symposium overseas travel program.The grant will cover travel expenses for eight to 10 students to spend three weeks in

    July 27, 2014 1 Photo

  • Continental picnic set for Saturday Former Continental Steel employees and their families will gather from noon to 4 p.m. Saturday at Rodgers Pavilion in Highland Park for a picnic. It is the 28th year for the get-together.Those who attend may bring a covered dish. Barbecued ribs, hot

    July 27, 2014

Latest news
Featured Ads
Only on our website
AP Video
13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries