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"Case Studies" > Business - Breach of Contract > Software Developer Fired After Most Important Work Completed

Software Developer Fired After Most Important Work Completed

Summary:


Based on an industrial standard for software development, defendant
clearly leveraged plaintiff’s innovative work product to bypass important
disciplines necessary to establish the core value of its own product.

Plaintiff software developer entered into a potentially lucrative partnership agreement with an insurance company to create an online claims adjustment program. The insurance company was under enormous pressure from its clients to either streamline its process or face a significant loss of business. A large part of the developer’s compensation was to be tied to the volume of claims adjusted using the new application.

However, shortly after the successful launch, the insurance company canceled the agreement and substituted an inferior homegrown application that was clearly modeled on plaintiff’s product. Plaintiff sued defendant for theft of trade secrets and breach of contract.


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