Bristol Compressor Opening Arguments Given Tuesday

WILKESBORO — Contentions for both the plaintiffs and the defense were laid out in opening arguments Tuesday afternoon in a multi-million dollar lawsuit filed by Alleghany County, the Town of Sparta and three other entities against Bristol Compressors.

The trial, expected to last into next week, was moved to Wilkes Superior Court because of heavy publicity in Alleghany. Jury selection began Monday and was concluded around noon Tuesday.

This is an attempt to recoup money paid to Bristol as part of a 10-year incentive agreement struck Sept. 22, 1993. Bristol's parent company is York International.

Joining Alleghany County and Sparta in the suit are Region D Development Corporation, Blue Ridge Electric Membership Corporation (BREMCO) and Skyline Telephone Membership Corporation.

Representing the plaintiffs is Earnest "Earnie" Pearson of the Sanford Holshouser law firm of Raleigh. Attorneys William K. Davis and Alan M. Ruley of Winston-Salem are appearing for Bristol. Judge Ronald Spivey is presiding over the trial.

Pearson, in his opening argument, told jurors that Bristol owes $6.9 million because it unilaterally terminated the incentive agreement by closing its plant before its 10-year obligation was fulfilled. In addition to these damages, the suit also seeks to recover legal fees. The company, as part of the agreement, said it would make at least a $40 million investment in the Alleghany facility and provide 750 jobs. Neither of these promises were fulfilled, Pearson said.

Bristol closed the plant in 2002 in order to consolidate its operations. When a contracted is "terminated unilaterally," the party terminating it is liable, Pearson said. "They don't deny liability... and we appreciate this," he said of Bristol. The question is simply how much money the corporation should have to pay.

A termination clause in the agreement clearly stated that if Bristol ceased operations in Alleghany during the 10 year period, the incentive money would have to be repaid, Pearson said.

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