McCreary County Heritage Foundation alleges breach of contract against Wasatch
By Eugenia Jones
The McCreary County Heritage Foundation, Inc. (MCHF) has filed a civil action complaint in district court alleging Wasatch Railroad Contractors (WRC) failed to live up to the terms of their contract to restore an historical steam engine.
The complaint, filed last Friday, charges Wasatch and CEO John E. Rimmasch with breach of contract and four other complaints and seeks damages from the contractors.
The McCreary County Heritage Foundation entered into a contract with the Wyoming based contractors in April, 2012 for the restoration and completion (to operational condition) of the K & T Railway No. 14 steam locomotive, built in 1944 and owned by the McCreary County Heritage Foundation. The Foundation contracted the restoration of the steam locomotive in order to use it for educational and passenger purposes with the Foundation’s tourist railroad-The Big South Fork Scenic Railway. Terms of the contract specified Wasatch would complete restoration of the locomotive to meet Federal Railway Administration (FRA) requirements within thirty-six months with the Heritage Foundation paying $695,000 for the restoration.
Within the complaint, MCHF alleges Wasatch breached their contract by performing work of poor quality with faults and defects and by failing to complete the restoration of the steam locomotive to operating condition by using original design specifications and standard practice in compliance with FRA requirements. The complaint also alleges negligence and carelessness on the part of Wasatch in performing its contracted work, using defective materials, and supervising its employees, agents, and volunteers.
As a result of the alleged actions of Wasatch and Rimmasch, the McCreary County Heritage Foundation claimed a loss of revenue citing its inability to use the steam locomotive in the operations of its tourist railroad (Big South Fork Scenic Railway) and the resulting loss of anticipated revenue or profits.
The response(s) of defendants Wasatch and Rimmasch are pending.