Memphis Utility Provider Resolves Legal Dispute with Tree-Trimming Company

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Workers performing tree trimming near power lines in Memphis

News Summary

Memphis Light, Gas and Water (MLGW) has settled a federal lawsuit against Asplundh Tree Expert, LLC, over contract breaches concerning tree trimming services vital for maintaining city power supply. The legal battle, initiated due to poor performance and significant financial losses, concluded with MLGW determined to rectify trimming backlogs. New contracts totaling over $227 million were established to ensure adequate tree management, bringing a sense of relief to city officials and residents hopeful for improved service moving forward.

Memphis Utility Provider Settles Lawsuit with Tree-Trimming Company

In a tale that has unfolded over several years, the city of Memphis has recently seen significant developments in a dispute between its utility provider and a tree-trimming company. **Memphis Light, Gas and Water (MLGW)** filed a federal lawsuit against **Asplundh Tree Expert, LLC** back on June 7, 2023, finally bringing closure to an issue that has caused quite a stir among local residents and officials alike.

Breaking Down the Lawsuit

This legal drama arose after MLGW alleged that Asplundh had breached their contract for line clearance, a task crucial for maintaining power supply in the city. The original contract, set to span five years, came with a hefty $97.4 million price tag, $74.5 million of which was allocated specifically for cycle trimming. However, the partnership didn’t get off to a good start. Asplundh began its work in October 2019, but the utility quickly noticed that the *performance* was deficient from the get-go.

Falling Short of Expectations

In a startling turn of events, as the years progressed, Asplundh fell increasingly short of expectations. In 2020, they managed to trim only **610 of the 1,400 required miles**, and this number dwindled substantially in subsequent years. The company trimmed **552 miles in 2021**, a meager **190 miles in 2022**, and dramatically decreased to a mere **26 miles in 2023**. By July 13, 2023, MLGW had enough and decided to terminate the contract citing poor performance as the main reason. Can you believe that?

The Domino Effect

As if that wasn’t troubling enough, MLGW pointed out that Asplundh’s *lackluster trimming* not only hampered their progress but also posed a significant risk of tree-related power outages. Consequently, MLGW had to act swiftly to address the ongoing issues, entering new contracts totaling over a whopping **$227 million** to ensure tree trimming was taken care of.

For just the fall period from 2023 to 2024, the new contracts related specifically to tree trimming soared to **$31,990,445**, which is actually twice the amount Asplundh was supposed to be paid for the same stretch of time. In fact, the first-year loss alone attributed to Asplundh’s shortcomings exceeded **$16 million**. Talk about a rough patch!

Accountability and Future Plans

It seems Asplundh had some foreknowledge of what the job required before signing the contract, yet the company allegedly failed to maintain sufficient staffing levels. Word on the street is that they could have moved their personnel to other states for more profitable opportunities, which didn’t bode well for their work in Memphis.

MLGW officials expressed that proper vegetation management would most likely have prevented many of the outages that impacted the city—and now, they’ve fallen **three years behind** schedule in tree trimming efforts! However, in November 2023, they announced some positive news regarding their new vendors, stating they were finally ahead of schedule.

A Sigh of Relief

After some back and forth, the legal battle reached its conclusion on January 30, 2024, through mediation, and plans were set in motion to file a stipulation of dismissal. Now, the utility provider can focus on rectifying the trimming backlog while putting this legal saga behind them.

In the end, Asplundh was held liable for all financial losses incurred by MLGW due to the breach of contract. For Memphis residents, the hope is that the city will be back on track soon, and the days of battling fallen trees and potential outages will be behind them. Here’s to better tree trimming and a brighter future!