Jilted elevator company suing condo association over terminated maintenance contract
Loop North News
By Steven Dahlman
15 December 2016
Elevator lobby on lower level of Marina City’s west tower.
An arbitration hearing is scheduled for Friday between Marina Towers
Condominium Association and ThyssenKrupp Elevator Corporation over a
maintenance contract for eleven elevators at Marina City. Though the
elevators seemed to break down often, ThyssenKrupp says MTCA cancelled
the contract early and owes $32,427.
15-Dec-16 – Frustrated with elevators breaking down and repairs taking
too long, the condominium association at Marina City has long since
taken its business elsewhere. However, the company it previously had a
contract with for elevator maintenance says their agreement was not
properly cancelled and they’re owed for lost profit and for a year-old
invoice they say the condo association refuses to pay.
ThyssenKrupp Elevator Corporation is seven months into a lawsuit
against Marina Towers Condominium Association. The engineering company
with offices worldwide, including one in the Loop, says it has a signed
contract to maintain eleven elevators – five passenger elevators in
each tower and one freight elevator – from January 1, 2012, to December
31, 2016, in exchange for $8,000 per month.
If there are complaints, the contract says ThyssenKrupp has 60 days to
resolve them but after that, MTCA can terminate the agreement with 30
days’ notice. ThyssenKrupp says it performed all its obligations under
the agreement and corrected alleged deficiencies within 60 days.
But on February 15, 2016, MTCA “prematurely terminated” the agreement
ten and a half months early, says ThyssenKrupp. Though they have not
done any elevator maintenance for MTCA since, the company says it
“remains ready, willing, and able to resume elevator maintenance
services on the property through the agreement’s December 31, 2016,
expiration date.” In the meantime, they claim losses of $32,427 due to
“multiple breaches of the agreement.”
The figure represents lost profit of $31,727 plus $700 ThyssenKrupp
says it has not been paid for a service call on December 1, 2015, that
required an engineer and assistant to work overtime, an additional cost
that was passed on to MTCA. An invoice dated December 14, 2015, says
workers removed a roller guide assembly from a broken elevator,
installed a new one, tested it, and put the elevator back in service.
The invoice, sent to the attention of David Gantt, who was residential
property manager at the time, has a handwritten note in the upper right
corner that reads, “Do not pay.”
the condo board approved a new maintenance contract
At its meeting on January 21, 2016, the condo board approved a new
maintenance contract with Suburban Elevator Company, based in East
Dundee, Illinois, about 40 miles northwest of Chicago.
“The board and management has been fully aware of and has fully shared
the frustrations experienced with the numerous elevator outages,” wrote
MTCA president Ellen Chessick (right) to unit owners and residents in
February.
“We had initially been trying to work with our contracted service
provider, ThyssenKrupp, to resolve the issues and get them to respond
to outages much more quickly. When it became apparent that despite our
efforts, ThyssenKrupp was not meeting our requirements, we had to go
through the steps legally required per the service contract and to end
the relationship.”
Chessick assured owners and residents that Suburban Elevator Company “will be more responsive and at a favorable cost.”
MTCA has filed a counter-claim, details of which have not been made
public. The case has been referred for private arbitration, with a
hearing scheduled for Friday. A status hearing back in Circuit Court is
scheduled for February 21.
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