Axion Solutions Inc. v. ACM Technologies Inc.
Published: Jun. 8, 2002 | Result Date: Mar. 22, 2002 | Filing Date: Jan. 1, 1900 |Case number: 01CC01592 Bench Decision – $135,200
Judge
Court
Orange Superior
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
David Pistole
(technical)
Defendant
Raymond G. Schultz
(technical)
Facts
According to the plaintiff: Axion is a software development company. ACM is a wholesale distributor of fax and
copy machines and related parts and supplies. ACM contracted with Axion to implement an e-commerce Web
site which would allow ACM to sell its products over the world wide web. The parties entered into a time and
materials contract which contained an estimate of 25 days and $56,000 to complete the project. Axion made
numerous changes to the scope of the project. In total, Axion spent approximately two and one half months on
the project and ACM was billed a total of $135,000 by Axion. Before the site went live, Axion was terminated.
ACM never paid any of the invoices, and it is still not selling its products over the World Wide Web.
Axion filed suit against ACM for breach of contract and money had and received.
Settlement Discussions
According to the plaintiff: There were very little settlement discussions. Axion claims to have served a statutory offer to compromise to ACM in the amount of $85,999. It was not accepted. ACM denies having received said offer. ACM offered to resolve the case by way of mutual dismissals of the complaint and cross-complaint in exchange for a waiver of costs.
Damages
According to the plaintiff: AxionÆs total claimed damages on the complaint were $135,200 plus interest and attorneyÆs fees. ACMÆs total claimed damages on the cross-complaint were in excess of $400,000.
Other Information
According to the plaintiff: On the complaint, the court found in favor of the plaintiff Axion and against the defendant ACM. On the cross-complaint, the court found in favor of the cross-defendant Axion and against the cross- complainant ACM. The court awarded Axion all sums which had been invoiced to ACM, for a total of $132,500. The court also awarded Axion prejudgment interest at 12 percent per annum and attorney fees and litigation costs incurred. To avoid unjust enrichment, the court ordered Axion to turn over the completed software upon satisfaction of the judgment. According to the defendant: If the completed software does not comply with the contract requirement as ACM expects that it will not, ACM will continue to seek judicial relief. In the meanwhile, ACM will seek post-judgment remedies on various legal factual grounds.
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