Posted by withy-admin,
Costly IT dispute resolved by mediation
Our client, a UK based software development company, along with its US parent company, were faced with a claim against them in the region of £900,000 which, it seemed, would inevitably lead to Court proceedings which would demand a significant investment of time and resource.
Our client had been commissioned to develop a bespoke computer system for another IT company as part of the design and implementation of a new interface. The terms of our client’s engagement were set out in a sub-contract, and the contractor alleged breach of the sub-contract. The result was a claim for damages in relation to the losses said to have been caused by the defects.
Our client disputed the claims that it had failed to fulfill its obligations under the sub-contract and also presented a counterclaim in excess of £500,000 relating to issues surrounding the contractor’s testing process. A stalemate resulted with neither party being prepared to move from their positions. There was a real danger that the dispute would end up in costly and lengthy Court proceedings, but there seemed little alternative.
This is when Royds Withy King got involved. We were able to hone in on the key issues through detailed communications and steer the parties towards mediation and away from what would have been costly litigation with an uncertain outcome.
To get this successful outcome, first we had to understand the technicalities of IT disputes, which are often complex. The next step was unpicking the issues within the dispute to provide the best advice. As a team, we were able to work with out client using both our specialist Technology & Media disputes expertise, as well as our mediation skills. The successful result meant that the developer company was able get on with its business having saved time, money and resources that a lengthy dispute would otherwise have taken up.
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