Birmingham sues Trane for $25 million over unmet energy savings promise

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Birmingham sues Trane for $25 million over unmet energy savings promise.

The City of Birmingham has filed a lawsuit against Trane U.S. Inc., asking for $25 million in damages, saying the city was promised $102 million in energy savings that never happened.was filed March 30 in Jefferson County Circuit Court by the law firm Lightfoot, Franklin & White LLC on behalf of the city. The city says that Trane told the city that improvements to 119 city facilities would result in $102 million in guaranteed savings that would pay for the cost of the project.

The city alleges that the shortfall in savings and damages from the Trane project will exceed $25 million. “Trane engaged in nothing short of a bait-and-switch scheme that promised massive savings the company knew it could not deliver,” said Birmingham Mayor Randall Woodfin. “We entered into this energy performance contract in good faith based on promises from Trane.

Under the contract, Trane promised energy efficient upgrades to 119 city facilities — including City Hall, museums, libraries, administration buildings and police and fire stations — that would be paid for by $80 million in energy savings and $22 million in operational savings over 18 years, for a total savings of $102 million, the lawsuit says.

 

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Good. Birmingham should sue whenever it is warranted or necessary. People never hesitate to sue Birmingham when a legal issue arises.

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