Talgo, Wisconsin Settle Contract Lawsuit

Wisconsin and Talgo, Inc., have reached a $9.7 million settlement of the Spanish rail equipment builder’s lawsuit over a canceled contract.

The state has agreed to pay Talgo to end the dispute, which began when current Gov. Scott Walker voided a contract for two Talgo trainsets.

As part of the agreement, Talgo will retain title to the two train sets it built for Wisconsin, but which have yet to be used in revenue service.

The equipment was originally intended to be used on Amtrak’s Hiawatha route between Chicago and Milwaukee and on a never-developed route between Milwaukee and Madison, Wisconsin.

“The state signed contracts with Talgo and then absolutely walked away from that,” said Lester Pines, an attorney for Talgo. “(Talgo) didn’t like this litigation and it’s happy it’s over. They’re not in the business of suing people.”

The Talgo trains were built under terms of a 2009 contract negotiated by former Gov. Jim Doyle.

After Walker voided the contract, Talgo filed suit in November 2012, naming Walker and Transportation Secretary Mark Gottlieb.

In May 2014, a state arbitration board rejected Talgo’s financial claims against the state.

The two completed trains are now in storage at Amtrak’s Beech Grove, Indiana, heavy maintenance facility.

There have been reports that the state of Michigan has expressed interest in acquiring or leasing the Talgos for use on state-funded routes.

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