Mountain Water case: Carlyle Group threatens bad-faith lawsuit will cost city millions

Mountain Water case: Carlyle Group threatens bad-faith lawsuit will cost city millions

News Type: State Source: Missoula Current
Click here to read the article: https://www.missoulacurrent.com/business/2018/07/carlyle-group-missoula-water/

The city of Missoula intends to sue the former owners of its water system for bad faith and “corporate bullying,” but spokesmen for The Carlyle Group said Friday the issue belongs in arbitration, not court.

After learning that the Missoula City Council is moving ahead with its 2015 lawsuit against their global investment firm, Carlyle representatives told Missoula Current that a 2011 letter of agreement between the city and the company says all “disputes, controversies and claims” must go through arbitration, not the courtroom.

In the lawsuit, Missoula’s attorneys filed 11 counts against The Carlyle Group, including fraud, conspiracy and bad faith, for its behavior as the city attempted to purchase Mountain Water Co., which provided Missoula’s municipal water.