Article: Connex in compensation bid

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From the Herald Sun click here!

Connex in compensation bid

Connex in compensation bid

    * Sue Hewitt
    * From: Herald Sun
    * September 13, 2009 12:57AM

CONNEX is in secret compensation talks with manufacturer Siemens over brake failures the train operator claims cost it $16.6 million.

The move comes after the Department of Foreign Affairs was called on to serve legal papers on the manufacturer's parent company in Germany.

Connex - which was dumped by the State Government in favour of a Hong Kong-based operator - is suing Siemens and its parent company, Siemens AG, over the allegedly faulty braking system.

In Supreme Court documents, Connex claims the braking bungle in 2007 cost $16.6 million in additional expenses and government fines.

Connex says the disruption cost $5.6 million in government fines, $2.9 million in braking performance investigations, $5 million in additional maintenance, $1.7 million in rectification work, $900,000 in additional operating costs and $500,00 in passenger compensation.

Connex alleges Siemens breached its duty of care in providing defective trains.

In the court documents, the company says the trains' braking system was "defective, faulty and inadequate".

Foreign Affairs served the writ and statement of claim recently on Siemens AG in Erlangen, Germany, on behalf of the Supreme Court.

A Siemens spokeswoman said the company was in "private arbitration" with Connex and declined to comment further.

A Connex spokesman also declined to comment on the legal case, but said the condition of trains had been revealed to the successful tenderer, Metro Trains Melbourne.

"As the incumbent franchisee, we have been diligent through the tender process to reveal all material information regarding matters relating to the general condition of the train fleet," he said.

A MTM spokeswoman said: "We have seen the information that has been made available throughout the bid process, but are yet to complete fleet inspections."