Sunday, June 12, 2016

Siemen's moves MAC lawsuit to federal court.

It appears MAC & Associates, LLC will get its day in court against Siemens Industry but that day will be in federal court.  MAC sued Siemens on May 31 for $37million in damages in Hinds County Circuit Court.  MAC is a Jackson minority subcontractor for Siemens under the $90 million water replacement contract. MAC is owned by Marcus Wallace.  The contract was awarded in 2013.  Siemens removed the lawsuit to U.S. District Court on June 3.

MAC alleged in its lawsuit:

*The upgrade of the "advance metering infrastructure" cost $51 million.  Remote read meters would replace 65,000 water meters and create a new billing system.

*Siemens agreed to ensure that half of the project cost would comply with Jackson's EBO program, work with the Jobs for Jacksonians and Youth Summer Work programs, create internships for JSU students, buy all materials from Jackson companies, and move the office to Jackson.  MAC alleges that Siemens promised 58% of the construction (It is assumed that construction refers to the actual workforce.  The Kingfish is not aware that there is a white, black, or purple "construction".) and 32% would be female.

*Siemens agreed to hire MAC for $20 million.  The minority participation for Siemens would be 22% for hiring MAC.

*MAC claimed that Siemens promised it would "mentor, train, and manage minority businesses involved in the project."   MAC also claimed that Siemens promised to "mentor, train, and help manage these businesses so these businesses would be successful and able to compete for similar contracts in the future. (Yes, the contract expects Siemens to train and develop its competition.).

*MAC's proposed a 15-20% markup for its services and called such a markup "standard".  Siemens would only agree to a 5% markup and told MAC that there was not enough profit to pay MAC for a 15-20% markup.   The two companies signed an agreement in July 2013.

*MAC then hired Hemphill Construction to "assist in performing the O&M and sewer repair work." MAC also retained Pedal Valve, Inc. to assist MAC on the water meter phase of the project.  However, MAC accuses Siemens of directly hiring Pedal after Jackson signed the main contract.  MAC argued Siemens broke its agreement with MAC when it hired Pedal and also reduced the minority participation.  (p.4)  The fourth and fifth pages (d-g) provide more information about MAC's claim that Siemen's use of Pedal created substandard work performed by "unskilled local workers" since Pedal did not allegedly keep enough "professional installers" on the job.

*MAC claimed one count each of fraudulent misrepresentation, fraud by the inducement, breach of contract, breach of implied duty of good faith and fair dealing, negligence, gross negligence,  and interference with business relations.

*The suit asks for $12 million in actual damages and $25 million in punitive damages.

However, Siemens submitted a response in a very short amount of time.  Siemens either denied most allegations or said the terms of the contract spoke for themselves.  Siemens told the Clarion-Ledger it paid MAC $17.8 million and decreased the contract to $19.3 million.

Secretary of State's records also state that the SOS dissolved MAC in December 2015 after it failed to file its annual corporate documents.  The company's legal status was reinstated in February 2016. 

Page 1: MAC complaint
Page 11: Subcontract agreement
Page 33: Siemens response

Note: Scribd removed the lawsuit under an alleged copyright violation.  There is no violation.  Scribd's little bots must have picked up some words that triggered the removal.  A dispute was filed and this lawsuit will probably reappear later today.  This has happened before on public records and Scribd has always ruled in my favor. 


Anonymous said...

Gee - Is Siemens trying to avoid Tomie Greene by going to federal court?

Anonymous said...

MAC is barking up a tree with no squirrels in it.. But what will come out is how much the taxpayers of Jackson are getting screwed by these EBO/Mentoring/Bullshit contracts that are nothing but a way for the city 'leadership' to create bagmen for their personal gain.

MAC getting a $21 million contract? Who in their right mind, after just basic minimum research on MAC would believe that they could perform such work? But the truth is shown already - they hired (white) contractor Hemphill to actually do the work, while MAC skimmed money off the top due to their being black. Oh - and they were supposed to be 'mentored' at the same time so that they might actually be qualified to do the work sometime in the future on another project.

But - why would MAC want to learn? Much better to just cash the checks, pay Hemphill to do the work, and share the wealth.

What happened here was MAC wanted twice as much work, but their other sub got taken out from under them. So, they could only skim half as much as they wanted to.

This project was done under Harvey. But his losing the office didn't change the system - Yarber has doubled down and increased the price to pay. AECOM, IMS, Garrett, Trilogy, and on,and on, and on....

Anonymous said...

Federal Court is the best place for it. Now everything should come out without being censored. As long as it was kept in Hinds County Circuit Court there wasn't much chance of MAC loosing and all of the facts would never come out. Look for things to change.

Anonymous said...

Who outsourced the new billing system to Detroit? It wasn't Yarber.

Anonymous said...

It is losing not LOOSING. Good Lord.

Anonymous said...

You people have absolutely no clue of what your talking about. Remember, there are three sides to every story. Yours, theirs and the truth. Just get your popcorn and sit on the sidelines and observe. Its obvious, this company is very much qualified. They been in business almost 20yrs and have credentials and a resume to back it up. They also have done so much in the community and have hired a lot of folks and helped a lot of children. Got more support than you think, BLACK and WHITE!!! Sounds like to me there's some slick hating going on. "Don't hate the player, hate the game." The game that was created by Republicans a long time ago. Federal court, State court or County court, it doesn't matter. When its the truth and nothing but the truth, God is the Judge anyway.....

Anonymous said...

Who outsourced the new billing system to Detroit? It wasn't Yarber.

Excellent question. I haven't received a water bill in five months.

Anonymous said...

Good job 3:35. I am sure that one post on behalf of your benefactor, MAC, will convince all.

If your statement was true - that they have been in business for 20 years and have credentials and a resume to back them up, WHY THE HELL are we paying for them to be "mentored"? That program is claimed to be to teach the untrained to make them qualified in the future. Of course, we all know it is to allow for premium cash to be spread through them to the ultimate beneficiary.

MAC was a major contributor of Tony's, in the CDM shakedown program. And they have received dozens of $10k projects clearing lots across the city. I am sure that those two qualifications meet your definition of having the resume for a $25 million contract!

BTW, helping lots of children is no qualification for installation of water systems. But we appreciate your attention to trying to fill your quota of words in the social media

Anonymous said...

3:13, can't you recognize a southern drawl when you read it?

Anonymous said...

3:35, it doesn't matter how qualified the company is. Credentials do not matter. Even a resume is useless.
If you are a crook and taking tax payers money none of that matters. Not even to the BLACK and WHITE.

Anonymous said...

Let the cross claim wars begin. Siemens will try to deflect and blame others…

Anonymous said...

There is a reason why federal contracting law and regulations, other than HUD pretty much, do not allow minority set-asides and most definitely do not allow for these horseshit mentor-mentee arrangements. Believe it or not, the idea is to award work to the most qualified firm.

Also, Jackson is 79.4% black, according to the census. Doesn't that make whites the minority, and shouldn't they be the beneficiaries under the city's EBO program?

Anonymous said...

Anonymous said...

I was a GC for 20+ years. In the early days contracts were awarded on "lowest & BEST" bid. I competed against several minority contractors. I won some, I lost some, but we were all on an even playing ground. Then the set asides came in. I refused to play the game and it drove me out of business. As long as Yates and some other HUGE GC's are around and willing to hand out subcontracts and set asides to anyone who has the right color skin regardless of qualifications things will not get better. This is a minority contractor from Madison that had a dirt hauling business for many years. He did a great job at what he knew. Then he got on the Yates gravy train doing things he had no business doing. I can drive by jobs that he had a part in and tell the quality is lacking. It's hard to blame him. Hell, people were waving big dollars in his face just to be able to use his name and minority status.

Anonymous said...

"document removed due to COPYRIGHT INFRINGEMENT"? is it under seal in federal court? LOL never use Scrybe again

Anonymous said...

8:09 and the rest of you are simply jealous because we black folk are finally getting a chance.

Anonymous said...

Nope, 8:53. Those of 'you black folk' that earn your money do not make me jealous at all. Many have done it for years.

Those of 'you black folk' that don't do anything but stand in line, connect up with the right crooked elected official, get paid for doing nothing (but of course you have to share that illfound gain with others that got it for you) don't make me jealous. It makes me want you and your partners in jail.

AND, I want 'my white folk' that are crooked, getting paid for doing nothing, or stealing out of the public trough in jail also. I hope those 'of you' can have adjoining cells with any 'white folk' that are conning the system.

I don't know if you are 'finally getting a chance' through the crooked, illegal system or if you are a legitimate business person. If the second - I'm all for you. If you are the first, I imagine you are already in the loop being watched if you are operating in the metro area.

PORHLT said...

Kingfish's lead post (above) mentions the acronym MAC twenty-one (21) times but never once says what that stands for. I guess it's the readers' responsibility to google to find out.

Anonymous said...

8:53, It sort of makes me mad but it just makes me more certain that black folk cannot compete on an even ground with other races. Just remember, a few may game the system, break the law, and make a few bucks. How about all of the rest who have to defend your sorry ass for your criminal activities?

Anonymous said...

6:55 - it's the name of the company you dumbass. You would know that if you read the third sentence of the post. It's not difficult.

Anonymous said...

8:53 You must be one of those who believe that being GIVEN something is the same as a job well done and the respect that comes.
I do not know one single white person who does not want blacks to become productive members of society. Could you try to imagine a Jackson that could add 30-40-50%- more taxpayers to the system. White folk would celebrate to add more people out pulling the wagon rather than riding and expecting others to pull them. To many in the black community do not seem to understand how EVERY ONES life would improve. I just do not understand the mind set of not being even a little bit ashamed or embarrassed asking and EXPECTING things to be given to you. And worst if they do not give it to you lets sue to take it them mentality.

Anonymous said...

This case should conclude just in time for the Jackson 2025 elections.

Anonymous said...

@1:51 - MAC is an acronym. Do you even know what that word means?

Anonymous said...

@10:41 PM do you know what the phrase 'Wrapped around the axle' means?

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