Tilson Owes Subcontractor $1.46M for Fiber Optic Work Done for Verizon: Complaint

Tilson Technology Management, a telecommunications services firm, wrongfully failed to pay the invoices of Eustis Cable Enterprises, a company that’s in the business of installing fiber optic cable for internet and cable television, alleged Eustis’ breach of contract complaint Wednesday (docket 2:24-cv-00620) in U.S. District Court for Vermont. Tilson contracts with cable and internet companies to design and install fiber optic cable networks, sometimes subcontracting the installation work to other companies, like Eustis, said the complaint. In 2022, Tilson solicited Eustis to perform installation work in Vermont, Connecticut and New York, it said. After some negotiations between Tilson and Eustis, the parties agreed that Eustis would perform the work of installing fiber optic cable for Tilson as a subcontractor for Tilson’s customers, including Verizon, it said. The work that Eustis performed “complied with the contractual standards for installation established by the parties,” said the complaint. Tilson’s customer, Verizon, “had no complaints,” and Tilson was “fully satisfied with the work” that Eustis performed, it said. The work was billed “consistent with the established pricing and procedures,” it said. But Tilson failed to pay Eustis the $1.46 million in fees that Eustis invoiced, the complaint said. Tilson “has no defense to this claim for nonpayment,” it said: “It simply chose not to pay.” The defendant’s failure to pay the submitted invoices “constitutes a breach of the contract for work” between Tilson and Eustis, said the complaint. That breach has caused “direct financial harm” to Eustis, and Tilson’s failure to pay is a violation of Vermont’s Prompt Pay Act, it said.