Failure to Deliver on Time

A software developer was hired to provide special tax revenue collection software for a state agency in the southern US. The contract amount was approximately $11 million. The developer failed to deliver the software in a timely manner, resulting in a significant loss of tax revenue to the state. The state agency sued and the trial court returned a verdict in favor of the state agency in the amount of $474 million, much of which was punitive damages. This is an example of a claim where the consequences of an error or omission greatly exceed the value of the work completed.

InsuranceSwingle Collins