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Westinghouse accused of reneging on contract

8 coolant pumps costing $118M in dispute

CRANBERRY TWP — Westinghouse Electric Company LLC was sued for more than $118 million over an alleged breach of contract.

Curtiss-Wright Electro-Mechanical Corp. filed a lawsuit Wednesday in the U.S. District Court for the Western District of Pennsylvania, alleging Westinghouse, based in Cranberry, breached a 13-year-old contract by not purchasing eight coolant pumps for nuclear power plants.

The lawsuit claims Westinghouse agreed in April 2008 to purchase a total of 32 reactor coolant pumps for eight AP1000 nuclear power plants across four locations.

According to the suit, Westinghouse identified three of those sites, containing two power plants each — one in Florida, one in South Carolina and one in Georgia — and one site was left unidentified.

Westinghouse did not respond to a request for comment made Thursday morning.

Westinghouse purchased 24 pumps for the three identified locations, the lawsuit claims. Curtiss-Wright claims, however, that Westinghouse never identified the fourth site, and did not purchase the eight coolant pumps for that project.

Curtiss-Wright argues the company provided a volume discount for having ordered 32 pumps and “would have charged Westinghouse significantly more” if Westinghouse agreed only to purchase 24.

Moreover, the lawsuit continues, Curtiss-Wright “made significant investments” to fulfill its end of the contract, constructing a new facility at its Cheswick plant to create additional capacity and hiring additional personnel.

The lawsuit claims Westinghouse only informed Curtiss-Wright it had exited or intended to exit the nuclear power plant construction industry in 2019, and the company argues “it is clear ... that Westinghouse has not and will not purchase the final eight (pumps) associated with the unnamed project.”

Curtiss-Wright asked the court to compel Westinghouse to purchase the final eight pumps at a cost of “at least” $118.4 million or, alternatively, to compel Westinghouse to compensate Curtiss-Wright for the investments it made to complete its end of the bargain, identified at the price of “at least” $50.9 million in “overhead costs” and the volume discount.

The company notes, however, the contract includes compulsory mediation, and will soon move to stay the federal court case pending the mediation.

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