Legal Question in Business Law in Florida

Loss of Revenue - VMS program not completed and malfunctioning

NSU signed a contract in March 2007 to have a Vendor and Customer Management Software Program Developed for our Business. The project was started on April 4, 2007. It was indicated that project would be completed in approx 2 mths. However, when we started with the initiation phase it was indicated that the project would not be completed by June. I sent an email to the salesperson in June and he indicated in an email that he spoke with the project manager and that if no changes to the BRD occurred after we signed off, then August 1 would not be unreasonable. I signed off on the BRD in June and no problems existed verbally or in writing by NetSuite. However, in August it was discovered that none of work was completed as listed in the BRD. We went over the BRD with the Project Coordinator step by step before signing off. The project was completed on October 24, 2007. I paid for nursing license for 1200 nurses but I had explained to the salesperson that the nurses could not utilize the system until the program was complete. The objective of the program was for hospitals to place the needs into the system and the nurses to be able to view these needs and then apply for them. Loss of $140,000 + $400,000 + 2M in revenues


Asked on 12/11/07, 10:08 am

3 Answers from Attorneys

Scott R. Jay Law Offices of Scott R. Jay

Re: Loss of Revenue - VMS program not completed and malfunctioning

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

You may have a breach of contract action but without a thorough review of the Contract and any amendments thereto, together with all correspondence and memorandums regarding this agreement, it is impossible to provide any viable advice. Contract law is very detailed and all aspects must be looked at closely. You should meet with a qualified attorney who can review all of the aforesaid and any other information you have and then advise you of your legal rights and obligations.

Scott R. Jay, Esq.

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Answered on 12/14/07, 12:26 am
Marlyn Wiener Marlyn J. Wiener, P.A.

Re: Loss of Revenue - VMS program not completed and malfunctioning

NOTICE: The information provided in this response is not, nor is it intended to be, legal advice. Many factors contribute to providing legal advice, including the specific facts of a situation. You should consult a competent attorney in your jurisdiction for advice regarding your individual situation. By reading the "Response" to your question or comment, you acknowledge that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then do not read any further.

It is not possible to tell from the facts you presented whether you have a claim or not. It is going to be absolutely critical that you review the contract (and any addendums, extensions and correspondence between the parties) with an attorney to determine what the obligations of the vendor were, particularly deadlines for completion of the project. You use the term �signing off� in your chronology � it is not clear if you actually signed documents approving the change in timeframe for completion of the project or not or if you signed a document accepting the completion of the project. First, you will need to determine if you have a claim for breach of contract- i.e. that the vendor failed to perform as promised. Then you must evaluate the potential damages you have suffered. You mention some very significant dollar amounts � it will be very important to provide your attorney with the analysis supporting these amounts. I would urge you to consult with a business litigation attorney to evaluate the facts of your potential claim.

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Answered on 12/11/07, 6:55 pm
Stuart M. Address Law Offices of Stuart M. Address, P.A.

Re: Loss of Revenue - VMS program not completed and malfunctioning

You may have a cause for breach of contract and/or warranty. Alot depends on the more detailed facts and the terms of the contract(s) and any addenda. If you would like to discuss a formal consult, please contact my office.

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Answered on 12/13/07, 11:31 am


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