LORDSTOWN, Ohio (WKBN) – An Ann Arbor-based company is suing Lordstown Motors, alleging a breach of contract and that Lordstown Motors owes over $2.5 million for services provided and fees.
DTE Lordstown, LLC filed the civil complaint October 30 in Trumbull County Court of Common Pleas.
According to the lawsuit, in February, DTE Lordstown agreed to offer utility services to Lordstown Motors’ project site, utility complex and wastewater treatment plant in exchange for monthly payments from Lordstown Motors. DTE Lordstown alleges Lordstown Motors fell behind on those payments and now owes over $2.5 million.
On June 1, DTE terminated its agreement with Lordstown Motors, effective August 14.
According to the lawsuit, Lordstown Motors explained the company had gotten behind on payments due to its fundraising efforts being delayed.
Lordstown Motors has paid DTE some of what was owed. Documents submitted to the court show DTE is still owed $190,000 for the actual work that was done and $2.3 million in what was called a termination fee.
Lordstown Motors released the following statement in response:
“Lordstown Motors Corporation was served with a lawsuit in Trumbull County from DTE Lordstown LLC, a division of Detroit Edison, alleging breach of contract. The dispute revolves around the termination of the Utility Services Agreement Lordstown was required to enter into to assume operational control of the central utility complex of the Lordstown Assembly from GM.
A new agreement was entered into by LMC and DTE Lordstown LLC in February of 2020. DTE terminated the agreement during the COVID Pandemic based on past due payments, but Lordstown has since paid DTE Lordstown LLC in full for all of the operational costs due through the date DTE terminated the agreement and after operational control of the CUC Facility was turned over to a new provider.
LMC believes it has made DTE Lordstown whole, and it is not entitled to the termination fee claimed due under the circumstances. Lordstown Motors looks forward to responding to and defending this matter in the Trumbull County courts.”