Johnson Controls files objection in NetVersant case

Thursday, December 11, 2008

WILMINGTON, Del.--On Dec. 8, Johnson Controls filed a limited objection to a portion of NetVersant's Chapter 11 bankruptcy filing. Essentially, JCI does not agree with pieces of the "Sale Motion," whereby NetVersant has asked for an order authorizing the sale of substantially all of its assets free and clear of liens, claims, and encumbrances, except for certain assumed liabilities. JCI believes it is owed $2.9 million, while NetVersant has stated it owes JCI nothing.
According to the filing, it is JCI's contention that NetVersant still owes the company $2.9 million related to subcontracting work on the LA County/USC Medical Center, begun in 2005. In an initial filing, NetVersant claimed to owe JCI $599,796. That was amended later to say NetVersant owes JCI nothing.
On Sept. 26 of this year, NetVersant filed a complaint in the California State Court, alleging breach of contract by JCI. NetVersant claimed to be owed additional monies for work it believes to have been outside the scope of the subcontract agreement.
"It is JCI's position," reads the filing, "that the project did not go beyond the scope of the work outlined in the subcontract. To the contrary, JCI has incurred and now seeks back-charges totaling approximately $2.9 million against NetVersant for the project."
A hearing on the matter was set for Dec. 19.