Story image

TechnologyOne threatens $50m lawsuit as battle with Brisbane City Council continues

25 Jul 2017

TechnologyOne has fired another salvo in the ongoing battle between the enterprise software provider and Brisbane City Council, threatening to sue for more than $50 million in damages.

The threat of a $50 million-plus lawsuit follows Brisbane City Council issuing a second notice to show cause, filed last month.

In a statement to the ASX, TechnologyOne alleges that Brisbane City Council has endangered the successful completion of the project through its actions and inactions, and that if the council proceeds with a wrongful termination, TechnologyOne ‘will immediately commence proceedings for a $50+ million damages claim’.

“TechnologyOne has offered to BCC that if they no longer wish to proceed with the project, TechnologyOne is open to BCC paying all outstanding invoices and to separate company, which would be substantially less than the cost of a long and drawn out court case that exposes Brisbane rate payers to a $50+m damages claim,” TechnologyOne says.

The battle, which centres around a $122 million project to deliver a new regulatory system upgrading 13 IT systems, flared publicly in January after Brisbane City Council’s Lord Mayor went public. At the time he claimed the project was facing a big delay and potential $60 million blowout.

The two parties have been trading legal blows – in the form of Notices to Show Cause – since then.

Last month TechnologyOne said it’s Notice to Show Cause for failure to pay invoices for milestones reached had resulted in BCC paying $750,000 for those particular milestones.

However, Brisbane City Council then filed a second Notice to Show Cause.

TechnologyOne says BCC action and inactions are causing the project to proceed more slowly than planned and are preventing a compliant system being implemented and operating by the contracted date.

Among the issues cited by the vendor are ‘significant’ addition scope causing delays of five-plus months, the council’s December 2016 instruction not to proceed causing five-plus months delay, and ‘unreasonable and bureaucratic conduct’ causing further delays.

Adrian Di Marco, TechnologyOne executive chairman, says “TechnologyOne at all times remains ready, willing and able to complete the BCC contract.

“TechnologyOne as the leading supplier to over 300 councils in Australia, is uniquely placed to provide a compelling value proposition to the rate payers of Brisbane,” Di Marco says.

“If BCC lawyers had not assumed control of this project after the Lord Mayor’s inaccurate press conference in January, and common sense had prevailed, we would still be on track to meet the contracted go live date.”

Zoom’s new Rooms and Meetings features
Zoom has released information about the upcoming releases for its Rooms and Meeting offerings for 2019.
Aussie company set to democratise direct-to-orbit IoT access
Adelaide-based Myriota has released a developer toolkit that has been trialled and tested by a smart waste management platform.
Apple's AirPods now come with 'Hey Siri' functionality
The new AirPods come with a standard case or a Wireless Charging Case that holds additional charges for more than 24 hours of listening time.
Dynatrace takes pole position in APM Magic Quadrant
It placed highest on Ability to Execute and furthest on Completeness of Vision in the 2019 Quadrant for Application Performance Monitoring (APM).
HCL and Xerox expand strategic partnership
Under the terms of the agreement, HCL will manage portions of Xerox’s shared services, including global administrative and support functions.
Avaya expands integration with Google Cloud AI
This includes embedding Google’s machine learning within conversation services for the contact centre, enabling integration of AI capabilities.
Forrester names Crowdstrike leader in incident response
The report provides an in-depth evaluation of the top 15 IR service providers across 11 criteria.
Poly appoints new A/NZ managing director, Andy Hurt
“We’re excited to be bringing together two established pioneers in audio and video technology to be moving forward and one business – Poly."