Claims Board to consider Talgo case

The State of Wisconsin Claims Board will consider a $65.9 million claim filed by Talgo Inc. at its Wednesday, April 30 meeting.

Train manufacturer Talgo filed the claim in November, and the issue is on the closed session agenda for the next Claims Board meeting.

In the claim, Talgo accuses the Walker administration of failing to live up to a deal to purchase two sets of the company’s trains.

Among other things, the company accused the state of inventing a dispute over testing the trains it built to get out of the contract and damaging its reputation through “the State’s personnel continually defaming Talgo’s professional reputation in every conceivable forum.”

Walker campaigned in 2010 against the proposed high-speed rail line between Madison and Milwaukee that was to include cars built by the Spanish company. The line was nixed before Walker took office, but work continued on the cars, which were to be used on the Hiawatha line between Milwaukee and Chicago.

Talgo argued in the filing the DOT quietly shopped the trains to other states as it looked for ways to get out of the contract. The company also claims the state has to immediately repay $70 million in bonds designated for the train sets because it failed to take possession of them.

Meanwhile, The Detroit News has reported that Michigan transportation officials are interested in buying the disputed trains from Talgo until its order for high speed trains comes through in 2018.

Sign up for BizTimes Daily Alerts

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

No posts to display