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Contracts
Breach of Contract
Copyright Infringement

Axon Solutions Inc., a Delaware corporation v. San Diego Data Processing Corporation, a California publicly-owned corporation; City of San Diego, a chartered political subdivision of the State of California

Published: Oct. 29, 2011 | Result Date: Oct. 3, 2011 | Filing Date: Jan. 1, 1900 |

Case number: 3:2009-cv-02543 Settlement –  $1,900,000

Court

USDC Southern District of California


Attorneys

Plaintiff

Daniel P. McKinnon

Michael J. Ioannou


Defendant

Joe B. Cordileone

Matthew L. Green
(Best, Best & Krieger LLP)

Robert J. Hanna
(Best Best & Krieger LLP)


Facts

The City of San Diego hired Axon Solutions, Inc., an IT consultancy, in 2007, to replace its financial computer systems. In 2008, the City terminated its contract with Axon, and hired the manufacturer of the enterprise software being installed to complete replacement.

Contentions

PLAINTIFF'S CONTENTIONS:
Axon filed suit against the City, alleging, among other things, amounts due for services rendered and deliverables delivered, trade secret misappropriation, and copyright infringement, the latter two claims stemming from the City's continued use of Axon's confidential and proprietary material.

DEFENDANT'S CONTENTIONS:
The City alleged it terminated Axon because Axon allegedly missed deadlines putting the project a year behind schedule and over $15 million above budget.

Damages

Axon sought $5.59 million in unpaid invoices.

Result

The parties reached a settlement for $1.9 million.


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