Bombardier has been told by the Region of Waterloo, the region intends to sue for the costs associated with the late arrival of ION LRT vehicles.
The launch date for ION service had to be pushed back from June to December because most of the LRT vehicles have not arrived yet, and that’s going to mean almost $25 million in costs for the region.
An email from Councillor Tom Galloway to 570 NEWS says, quote, “At the end of the day we intend to sue Bombardier for all losses over and above the penalties. They have been so informed.”
Galloway tells the Mike Farwell Show, Bombardier is the exclusive cause of the delay in service.
Galloway says the region has already maxed out on the roughly $4 million paid by Bombardier in late delivery penalties in their original contract.
There are more potential penalties in a revised contract if the rest of the LRT vehicles are not delivered in the next couple of months.
So far, only four of the 14 vehicles have arrived.
Galloway emphasizes there is no lawsuit currently, only that Bombardier has been notified about one.