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Contracts
Breach of Contract
Failure to Make Payment

Wilshire Associates Incorporated, a California corporation v. Ashland Partners & Co., LLP, an Oregon Limited Liability Partnership

Published: Sep. 25, 2010 | Result Date: Sep. 7, 2010 | Filing Date: Jan. 1, 1900 |

Case number: 2:08-cv-03008-MMM-CW Bench Verdict –  $1,435,270

Court

USDC Central


Attorneys

Plaintiff

Lawrence C. Hinkle II

Eric M. George
(Ellis, George, Cipollone, O'Brien & Annaguey LLP)

Stanton L. Stein

Fred B. Griffin

Ira G. Bibbero

Brooke H. Eisenhart


Defendant

Andrew A. August
(Browne George Ross LLP)

William W. Schofield Jr.

Kevin F. Rooney
(Browne George Ross LLP)


Facts

In 2007, plaintiff Wilshire Associates Incorporated entered into a contract with defendant Ashland Partners & Co. LLP, whereby Ashland was permitted to use Wilshire's software in its verification business, and the companies agreed to market the software jointly to Ashland's clients and contacts. After the software was installed, Ashland reported problems and requested improvements. The parties proceeded to engage in joint marketing of the software.

On Dec. 1, 2007, Wilshire sent Ashland an invoice for $250,000, the minimum due under the agreement. After Ashland failed to make payment on the invoice by the Jan. 31, 2008 deadline, Wilshire filed suit.

Contentions

PLAINTIFF'S CONTENTIONS:
Wilshire alleged breach of contract. Wilshire contended that, after Ashland requested improvements, Wilshire made such improvements.

DEFENDANT'S CONTENTIONS:
Ashland disputed the invoice, stating the software was not operational and had not generated any income for the company. Ashland contended it was not required to perform under the contract because of Wilshire's failure to provide consideration and lack of performance.

Result

The court awarded Wilshire $1,435,274.


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