Balcatta based company ERG has filed a $200 million counter claim against the NSW government's Public Transport Ticketing Corporation over the termination of the Sydney Tcard project.
ERG and its wholly owned subsidiary, Integrated Transit Solutions, say that the PTTC was not entitled to terminate the contract, as they contributed to project delays.
The software systems developer will claim damages of more than $200 million to recover its losses as well as unspecified damages to recover the lost opportunity to exploit the Tcard for other commercial purposes.
The project, which was originally promised to be completed in time for the 2000 Olympic Games, was plagued by continual delays.
In November 2007, NSW transport minister John Watkins informed ERG that the government intended to terminate its contract, giving it until December 3 to respond.
However ERG claim that the PTTC failed to respond to the company's December plan to salvage the $350 million project.
Previously ERG has installed ticketing systems in major cities including Gothenburg, Hong Kong, Melbourne, Rome, San Francisco and Singapore, with more than 22 million smart cards in circulation.
ERG has not traded since January, when shares were at 4.5 cents.