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Insurance > Sample Claims for Computer Related Services
Sample Claims for Computer Related Services
- An electronic data processing company provided computer bulletin board
services to its subscribers. One of the subscribers apparently used the
computer bulletin board to publish unfavorable messages regarding the
sales and commission practices of a large stock brokerage on the East
Coast. The brokerage discovered the misrepresentations and filed suit
against the subscriber and the data processing company alleging that the
data processor had negligently failed to prevent the subscriber from publishing
defamatory information. The claim was favorably resolved, but defense
fees were incurred.
- A large retailer retained a data processing and mass-mailing
company to send out all of the retailer's seasonal catalogs. The data
processor created a special software program to handle mailing of several
million catalogs on a seasonal basis. Unfortunately, the program malfunctioned
and the catalogs were sent to the wrong addresses. The retailer claimed
nearly $1,000,000 in losses as a result, including lost catalog costs,
lost profits from reduced catalog sales, and loss of goodwill with customers.
No suit was filed, but the claim was settled for over $500,000.
- A corporation
with multiple subsidiaries in many states retained a data processing company
(which specialized in corporate records software) to provide software
to assist the corporation in preparing certain annual reports electronically.
The corporation encountered problems in implementing the software and
filed suit against the data processor. The suit alleged that the data
processor negligently failed to disclose that the software was created
only for processing small business reports and could not prepare sophisticated
corporate reports. The corporation requested actual and consequential
damages of almost $1.5 million for delay in preparing the reports, and
expense to alter its hardware to make the software work. The case was
settled for over $185,000.
- A retailer in the Midwest entered into a contract
with a data processor under which it would provide all customer billing
for the retailer. Two years later, the retailer sued the data processor
claiming that it had: (1) negligently failed to produce and deliver timely
and accurate bills to the customers and (2) negligently failed to correct
the billing errors. The complaint requested damages of over $150,000.
The case was settled by payment in excess of $150,000 to the plaintiff.
- A utility company in the West retained a data processing firm to provide computer consulting services regarding customer accounts. The software delivered by the data processor allegedly did not process billing as quickly as promised, and the utility filed suit against the data processor. The suit sought recovery of approximately $5,000,000, made up of funds paid to correct billing problems caused by the alleged errors and omissions. The case was settled two years later for payments of nearly $500,000.
Source, Media Professionals