Sumitomo Takes Steps Toward Green Line Lawsuit
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Sumitomo Corp. said Wednesday in Tokyo that it has filed a “preliminary claim” with the Los Angeles County Transportation Commission, raising the possibility of a lawsuit over its loss of a $121.8-million contract to build driverless cars for the Metro Green Line.
The company’s domestic unit, Sumitomo Corp. of America, was picked by the LACTC in December to build 41 cars for the Norwalk-to-El Segundo line, but the contract was canceled a month later when the deal stirred a political tempest over international trade and local jobs.
Sumitomo officials in Japan said the contract was “terminated for convenience,” which requires reimbursement of the company’s costs.
Ed McSpedon, president of the LACTC’s Rail Construction Corp., said that Sumitomo’s letter keeps open the company’s option to file an administrative claim or a formal lawsuit.
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