A dispute between Calgary Transit and a company over its non-functional electronic fare payment system appears headed to court.

Transit spent years trying to get the so-called Connect card to work on the city's trains and buses, even giving the contracted company a second chance after an initial contract termination.

Finally, in June, the city announced it was scrapping the project altogether, as the system simply would not work properly in Calgary.

Transit director Doug Morgan said negotiations with Schneider Electric to recover $5 million the city figures it is now owed by the company have been unsuccessful — so a lawsuit is expected to be filed soon.