LORDSTOWN, Ohio (WKBN) – A Trumbull County court has ordered Lordstown Motors to pay over $2.5 million for a breach of contract in regard to utility services.
The allegations date back two years when DTE Lordstown, LLC filed a civil complaint Oct. 30, 2020, in Trumbull County Court of Common Pleas.
According to the lawsuit, DTE Lordstown agreed to offer utility services to Lordstown Motors’ project site, utility complex and wastewater treatment plant in exchange for monthly payments from Lordstown Motors. DTE Lordstown alleges Lordstown Motors fell behind on those payments.
According to the lawsuit, Lordstown Motors explained the company had gotten behind on payments due to its fundraising efforts being delayed.
The company did pay back some of what was owed, but $2.3 million of the charges was for a so-called termination fee.
The court’s judgment was in favor of DTE Lordstown for $2.5 million, plus interest and costs.
Lordstown Motors’ attorney requested a stay of execution of the judgment pending an appeal, according to court records.
DTE Lordstown is asking that the motion be denied.