TAPS Public Transit and First Transit would meet in Collin County courtroom. The dispute is over which entity first broke its contract with the other.
In January 2016, First Transit filed suit against TAPS for defaulting on a $1 million+ promissory note. It cited TAPS’ hiring of Transdev to manage operations and sought a receivership to keep TAPS’ assets, which First Transit claims should be used to pay off TAPS’ debts, from being used for other things, like running TAPS under Transdev.
The two sides were to meet in a McKinney courtroom in March. However, TAPS filed notice that it was going to move the case to federal court saying that it is a political subdivision of the state of Texas and is funded by public funds from the Federal Transit Administration and Texas Department of Transportation.
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