The State of Wisconsin Claims Board has rejected a claim by Talgo, Inc. against the Department of Transportation (DOT) for nearly $66 million for a 2009 contract regarding a set of train cars.

The train cars were to be part of a rail extension between Madison and Milwaukee, and a high-speed rail that would then stretch to Minneapolis-St. Paul in the future, through a plan set out by then-Governor Jim Doyle. Talgo, Inc. claims the Department of Transportation illegally breached the contract for political reasons, when Governor Walker took office and terminated the project, delivering on his campaign agenda item to “Stop the Train.”

Talgo, Inc. claims the DOT should pay nearly $70 million for the additional testing it required for the trains, on top of the $40 million the DOT already paid for the train sets. The DOT however, claims the contract clearly stated the DOT would not have to pay additional funds if the Joint Finance Committee decided to not appropriate funds for the project, which occurred 2011.

Because the State of Wisconsin Claims Board has rejected the claim by Talgo, Inc. the company is now free to file a formal lawsuit against the DOT in a court of law.

This post was submitted by Hamilton Consulting Intern, Rebecca Ballweg.