Los Angeles Unified School District v. Maximus Inc., Harris Educational Consulting Inc.
Published: Jan. 26, 2013 | Result Date: Dec. 27, 2012 | Filing Date: Jan. 1, 1900 |Case number: 1100070648 Arbitration – $10,124,000 (Defendant)
Court
JAMS
Attorneys
Claimant
James M. Lee
(LTL Attorneys LLP)
K. Luan Tran
(King & Spaulding)
Respondent
Maurice M. Suh
(Gibson Dunn & Crutcher LLP)
John T. Ryan
(Latham & Watkins LLP)
Daniel S. Schecter
(Latham & Watkins LLP)
Facts
The Los Angeles Unified School District (LAUSD) entered into a Software Services and License Agreement with Maximus Inc. Maximus then assigned the Agreement to Harris Educational Consulting Inc., which thereafter completed performance under the contract. Dispute arose regarding Harris' and Maximus' performance under the contract. The parties then entered into an arbitration before JAMS for breach of contract and to void the District's contractual obligations to Harris arising from the Contract due to an alleged failure to obtain approvals from the LAUSD board, among other claims. Harris also filed a counterclaim for unpaid invoices and cost of performance.
Result
The arbitration panel ultimately decided against LAUSD and did not award any damages on all of its claims. Moreover, the panel ordered LAUSD to pay Harris more than $9.8 million in compensatory damages plus more than $324,000 in interest.
Other Information
The District sought to amend the complaint to add fraud allegations against Maximus, but ultimately this effort was unsuccessful. ARBITRATORS: Richard Chernick, JAMS; Zela G. Claiborne, JAMS; Hon. Read Ambler, retired, JAMS.
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