Coming and Going
This is what happens when a city council votes for something that everyone hates, then backtracks, but fails to read the small print:
- The termination of red light cameras in one major U.S. city has the company behind them seeing red.
Xerox is suing the city of Cleveland for ending its three-year contract to use the traffic cameras -- claiming the company is owed money because the city backed out early, violating the terms of the agreement.
"The city selected Xerox as its automated enforcement vendor in a competitive bid process that required Xerox to incur millions of dollars of upfront expense to implement the city’s automated enforcement program," Xerox said in a statement to FoxNews.com Thursday.
"The resulting contract between the city and Xerox requires the city to pay cancellation fees in the event of an early termination," the company said. "The city has refused to meet its clear contract obligations and has declined to negotiate despite substantial good faith efforts by Xerox over many months to reach a solution without litigation.
"Unfortunately, this left Xerox with no reasonable choice but to file this lawsuit," the company added.
The red light cameras and speed cameras were at first favored by city officials -- bringing in $9 million in revenue -- but residents later voted by a 78 percent margin to ban the use of them in 2014.
So ignorant politicos vote in a program with dollar signs in their eyes. 78% of the population hates it and the politicians, realizing too late whom they are supposed to answer to, revoke the contract. Unfortunately, the corporate lawyers, so much smarter than your typical politician, drop in a standard termination-of-services clause that no one seems to catch...until to politicians get cold feet facing a pissed off electorate.