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Contracts
Fraud
Quantum Meruit

Associated Third Party Administrators v. The TriZetto Group Inc.

Published: Jun. 21, 2005 | Result Date: Oct. 26, 2004 | Filing Date: Jan. 1, 1900 |

Case number: 2002055215 Verdict –  $1,862,660

Judge

Gordon S. Baranco

Court

Alameda Superior


Attorneys

Plaintiff

John H. Patton


Defendant

Elizabeth Hwang

Kenneth R. Styles


Experts

Plaintiff

Robert L. Woerner
(technical)

Randy Sugarman
(technical)

Defendant

Richard Diamond
(technical)

Keith Westcourt
(technical)

Terry Lloyd
(technical)

Facts

Associated Third Party Administrators (ATPA) is a third-party administrator of employee health and pension benefits for various companies. The TriZetto Group is a provider of information technology based in Newport Beach. In 2001, ATPA and TriZetto executed a series of contracts for software, hardware and services. According to the plaintiff, the software system did not perform as represented, and TriZetto then attempted to get ATPA to alter the deal. ATPA sued TriZetto, alleging fraud, breach of contract and breach of warranty. TriZetto cross-complained, alleging breach of contract and quantum meruit for unpaid invoices.

Settlement Discussions

According to the plaintiff, it demanded in excess of $2 million before trial. The defendant disputes that plaintiff ever made such a low demand, but declines to disclose confidential mediation discussions. The defendant offered $1 million before trial.

Damages

The plaintiff claimed it suffered damages in the sum of $1.8 million to recover payments made to the defendant under the contracts and payments to third-party contractors to install the system. It also claimed lost profits and gains in the amount of $6 million. The plaintiff also requested punitive damages. The defendant claimed damages of $1 million for unpaid invoices for services and goods provided to the plaintiff.

Result

$1,862,655

Other Information

According to the plaintiff, the jury rejected the defendant's contentions and found fraud.

Deliberation

two days

Poll

various between 11-1 and 9-3

Length

25 days


#116619

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