Facts

In October 2011, Copart Inc., an online car auction company, entered into a contract with Sparta Consulting Inc., a software implementation company. Copart planned to replace its legacy operating system with the resource planning software SAP. Copart hired Sparta to customize and implement the SAP software. However, due to various issues during implementation the SAP system never went live. Copart then terminated its contract with Sparta and brought suit against Sparta, KPIT Infosystems Inc., and KPIT Technologies Ltd.

Sparta filed a countersuit for breach of contract.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants concealed issues with the project, which resulted in plaintiff hiring defendants for a subsequent project all while defendants continued to conceal issues with the project while privately admitting that there were multiple problems.

Plaintiff asserted causes of action for fraud and negligence.

DEFENDANTS' CONTENTIONS: Defendant denied all allegations and maintained that plaintiff terminated the contract for convenience and that plaintiff's actions deprived Sparta of the opportunity to complete the project.

Damages

Plaintiff claimed damages including $11,364,461 that it had to pay defendants for the implantation, along with $4,067,266 that it spent internally on the project and $9,015,755 that it spent on outside vendors and damages for lost profits. Plaintiff also sought recovery of $8,000 for what it spent to investigate the alleged hacking. Defendant sought $12 million for the unpaid portion of the contract.

Result

The jury found that defendants committed fraud in the form of concealment, but that defendant did not commit false promise or an intentional misrepresentation of fact. The jury also found that defendants committed professional negligence but that plaintiff was 20 percent responsible. As such, the jury awarded plaintiff $4,690,000 for the fraud claim, $20,370,000 for the professional negligence claim, for a total of $25,060,000.