Sodexo sues Detroit Public Schools for $23M, plus $2M interest

DETROIT — A contractor still is waiting for Detroit Public Schools to honor a judgment ordering the district to pay more than $23 million in outstanding invoices, plus $2 million in interest, according to a federal complaint filed Wednesday.

According to the lawsuit, filed in U.S. District Court by Sodexo Management Inc., DPS filed a counterclaim against the company last September.

The district hired Sodexo in January 2011 to provide custodial, building repair, maintenance, engineering and grounds services through seven subcontractors. The five-year contract called for the company to be paid $43.5 million.

At the time, officials in the deficit-plagued district said the largest outsourcing taken to restructure DPS would save DPS $75 million in the move to Sodexo.

In its complaint, Sodexo says DPS delayed and missed payments, leading to a payment agreement in July 2013 that called for arbitration to settle any disputes. The suit says the company sought arbitration in May 2014 “following unsuccessful negotiations and fruitless attempts to obtain past due payments from DPS.”

Want breaking news at your fingertips?

Click here or text FSD to (877) 281-7554 to receive text alerts from FoodService Director and get the news and insights that matter to your operation.


More from our partners