Many companies in Florida enter into contracts and while legal contracts are there to protect companies, some business agreements result in contract disputes. Florida recently settled a contract dispute with a technology company after the Infinity Software Development tech company filed a lawsuit over their $20 million contract agreement to create a website for the Florida Department of Education.
The tech company filed the lawsuit against Florida, saying that the Department of Education did not review their work and failed to pay the company on time. The DOE contested the lawsuit, saying that they sent a notice to the tech company informing them that it was not meeting the requirements in the contract so they would not be paid.
Before the lawsuit was filed, the DOE said that the tech company was violating their contract by not finishing their work on time. However, the tech company said that there was a delay in awarding the contract making the deadline requirements unattainable.
Then the tech company requested that the DOE pay them up to $4.5 million for the completed work. The DOE responded saying that the tech company was in “material breach” of their contract so they would not be paying them. After that, Infinity filed the lawsuit to try to receive payment for the work they completed.
The two organizations were able to reach a settlement, with Florida agreeing to pay Infinity $1.25 million. The tech company said they were pleased with the settlement they received.
This case is an example of the legal action companies can take if there has been a breach of contract or another different type of contract dispute. Companies who are currently in a contract dispute or need to take legal action against another company for a breach of contract should work with a business law attorney.
Source: The Florida Current, “State settles contract dispute with tech company over website,” Gary Rohrer, May 23, 2013