LURAY — The Work Force Job Center Inc. has not only filed a response to the lawsuit brought by Shenandoah Valley Workforce Investment Board Inc. of Harrisonburg, but it has also filed a counterclaim.
In April, the investment board claimed the job center submitted bills amounting to $40,875 for charges “disallowed” under the parties’ contracts. The board works under the provisions of the federal Work Force Investment Act, which was intended to provide a framework for a national system of job training and employment.
The investment board is a nonprofit organization that manages funds for employment training and placement under the federal Workforce Investment Act. The Work Force Job Center, formerly headquartered in Luray, was contracted by SVWIB to provide services for dislocated and youth workers. The investment board has since replaced the job center with ResCare Workforce Services, based in Louisville, Ky.
W. Ashley Burgess, the job center’s lawyer, filed an answer and counterclaim to the investment board’s lawsuit earlier this month.
In the counterclaim, the job center claimed the investment board did not pay the full amount of its last month of services under contract, which was June, and that the board did not reimburse the job center for expenses it had preapproved.
The center also claimed the board led it to believe that certain funds were not available. As a result, the job center had to significantly adjust its budget and forego its allowable profit, according to the claim.
The job center is seeking about $89,000 from the investment board, according to its counterclaim. The board seeks about $40,000 from the job center.
Andrew Baugher, representing the board, responded to the counterclaim Friday. The response acknowledged the investment board was billed for and did not pay about $38,800, but denied that the job center was entitled to reimbursement.
The investment board also denied an obligation to pay the rest of the relief the center requested in its counterclaim, in part because of an alleged breach of contract on the part of the job center. In July, the investment board claimed that the center, in a breach of contract, used funds to pay for ineligible gas compensation, additional salary for its president, bonuses for executives and employees, donations to third parties and its own tax preparation costs.
SVWIB further “denies that WFJC was entitled to make and retain a profit from WIA funding without proper negotiation of and justification for such profit.”