Mayor Duke Bennett and other city officials have received notice they are about to be sued for the way Terre Haute's various sludge-to-diesel agreements have been handled.
A tort claim notice sent to city officials last week makes several complaints about contracts involving the Powerdyne project. The notice was filed by attorney Noah Gambill on behalf of Pat Goodwin, former city engineer, and other unnamed individuals.
Among other things, the notice asserts the city failed to follow proper procedures in a contract with Highland TH LLC, the Powerdyne-owned company that will be "de-watering" the city's sludge. It also states Highland TH LLC entered into a contract with the city before the company was registered to operate in Indiana.
The four-page notice claims officials "deceived taxpayers" when the mayor said Powerdyne would pay the city $3 million in 2014 and $3 million in 2015 when no contract language spells out such payments and no payments have been received.
The tort claim also asserts that a city contract with Renewable Transport Services for sludge hauling is void because it didn't go through a competitive bid process.
The legal action will seek to stop the Powerdyne agreements from moving forward and will seek unknown "damages, the notice, dated Jan. 12, states.
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