Posted Monday, August 4, 2003 5:24 AM | Contributed by Jeff
Developer of flight-training systems and theme-park rides Environmental Tectonics Corp. has sued its largest customer, the Walt Disney Co., and three Disney subsidiaries, over a ride called "Mission: Space." In the lawsuit, ETC seeks damages of more than $15 million for Disney's alleged failure to pay it all it is owed for its work on the ride, which is scheduled to open officially on Aug. 15 at Walt Disney World's Epcot Center. The company also wants rights to build similar rides for Disney and other companies.
Read more from The Philadelphia Business Journal.
I was interested to see that this ETC has a lot of eggs in one basket. 40% of the company revenue came from the Mission: Space project. Now, they want to jeopardize any future relationship with the company by threatening a lawsuit. Disney doesn't lose too many suits so ETC better be sure.
SW:):)SH Shaddy(president of LEMCCDWBLI)
never met a coaster I didn't ride (except Junior Geminii)
Plus it sounds like Disney is claiming breech of contract and refusing to pay all of the funds to ET on this basis. This always opens a can of worms. I'm sure that ET is in return claiming that Disney has breeched the contract by not making the payments.
Biting the hand that feeds you is something that you hate to do, but sometimes can't escape. This is especially the case when a customer represents a very high percentage of your business. It could well be that without the payments that Disney is withholding ET will be bankrupt and therefore has nothing to lose.
As to ET's other claims, they may be serious, or they may be items thrown out for use in a negotiated settlement.
Old but good joke: You're locked in a room with a Lawyer, a Rattlesnake and a Lion. You have a gun, with two bullets. What do you shoot?
You shoot the Lawyer......twice!
I met a guy in line at BGT that builds huge water pumps for water rides and things. He told me he will never do any more work for Disney. He said they first haggle the price down then take forever to pay for work completed unlike Busch or Universal which pay on time and even give some perks (he had comps for his family when I met him).
They have to figure some way to pay Eisner's salary.
Assuming that the mouse is the hand that feeds them, maybe ETC is tired of all that cheese!
Joking aside, I can't help but wonder what caused the original 'rewrite' of the contract. If a contract is being re-written mid-project, you can bet there is some hidden 'problem' that is starting to make itself known.
I really enjoy the Simpsons. It's just a shame that I am starting to LOOK like Homer.
He told me Disney wants constructuion companies to do things the way Disney wants them to do it(makes sense, it's their money). As many of us know, construction workers(and companies) take their sweet time to do things and they think the client is just going to have to take it on the chin. Apparently, Disney doesn't play that game and a company that tries doing things "their way" is in for a rude awakening.
As much as I would like to say it's Disney's fault, a reliable source has made me think differently.
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