The state of Oregon is suing software company Oracle after it claims that the company breached contracts and engaged in racketeering. Court documents show that the suit was filed in August in Marion County Circuit Court. Meanwhile, Oracle has sued the state of Oregon in federal court for breach of contract. The dispute arises from work done on Oregon's health care exchange website.
The enrollment site for Cover Oregon was never launched, which allegedly forced the state to hire workers to process paper applications. In its lawsuit against Oracle, the state is seeking $240 million in damages. Oracle, on the other hand, is seeking $23 million in payments that it claims it is owed for work it did. The company also claims that the lawsuit is a deflection strategy used to distract from what became a political liability.
Oregon has budgeted $2 million to fight the case, but some professionals believe that this could run out in one year. The two lawsuits are expected to move ahead at the same time, and it is possible that each party may win their respective case.
When a company fails to follow the terms of a contract, it could result in a breach of that contract. In some cases, it could result in the other party suing for damages if the breached party then refuses to uphold its obligations under the contract. In civil disputes, this could lead to a nullified contract and both parties restoring each other to their original positions. A business law attorney may be able to review a contract to determine if it has been breached and what relief may be available to the breached party.
Source: San Francisco Gate, "State budgets $2 million for Cover Oregon lawsuit", September 14, 2014