Xerox is suing the city of Cleveland for the alleged early termination of a three year contract.
Xerox is claiming that after it put millions up front in a deal with the city of Cleveland to let it use the company's traffic cameras, Cleveland should pay for backing out of its contract early, according to Fox News.
"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," said the company in a statement.
The contract slotted Xerox to provide 44 red light cameras and 19 speed cameras, while the city had a clause in the agreement that ensured it would never lose any money on the camera investment, according to the Newspaper.
The city reportedly made $9 million as a result of the deal.
After voters decided to go against the cameras, however, the city allegedly tried to avoid the early termination fee by simply not canceling the contract and keeping the gains in revenue, much to the dismay of Xerox who believes that monthly payments still need to be made.
The suit claims that the city is exploiting their contract clause in an illegitimate way, and should pay from the past revenue the cameras garnered or end the contract legitimately.
The monthly fees to Xerox totaled just over $300,000 at the time of Cleveland's last payment, according to Cleveland.com.
