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Evers may escape bad Foxconn deal -- Irwin Kass

December 22, 2018

Gov. Tony Evers recently expressed concern over the Foxconn deal but wasn’t sure if the state had a legal basis to withdraw from it.

One basis may be anticipatory breach. If it can be shown that Foxconn by words or actions has indicated an intent to not fulfill its material obligations, the state could have a basis to bring an action to be released from the contract.

News reports indicate that Foxconn may be looking for ways to modify the intended facility, change the product mix, or import non-Wisconsin employees. These and other actions could be a substantial change in the letter and good faith intent of the deal.

It would be prudent to get ahead of this by bringing an action now rather than wait to see what happens, assuming there is evidence of Foxconn’s intent to do so. This deal was suspicious in its origin. It is getting even more so as it moves forward.

Irwin Kass, Madison

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