Pipeline installer sues Summit Natural Gas of Maine
A Wisconsin-based pipeline company is suing Summit Natural Gas of Maine over a contract to build natural gas pipelines through the Kennebec Valley.
The Kennebec Journal reported Schmid Pipeline Construction Inc. is seeking $72 million in damages through a lawsuit it filed electronically in U.S. District Court Wednesday. The firm is represented by John Hobson of the Portland firm Perkins Thompson.
In the lawsuit, the company alleges that it quickly discovered the scope of work for its portion of the $110 million natural gas transmission and distribution system would require more money and resources than originally estimated. The company says that Schmid was forced to add more workers, materials and equipment and that its capital outlay totals $72 million, topping the maximum capital outlay of $10 million stipulated by its contract with Summit. That led to Schmid terminating its contract on Nov. 20 and “demobilizing from the jobsite,” causing delays in the project.
Reached Thursday morning, Summit President Michael Minkos told Mainebiz he could not comment immediately on the lawsuit.
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