Commercial List trial arising from the wrongful termination of a subcontract in a large SAP IS-U implementation project.
The court held that the prime contractor wrongfully terminated the subcontract for cause, because alleged deficiencies in data conversion, reconciliation, and AMS did not amount to material incurable breaches and, in any event, earlier breaches had been affirmed.
The court further held that delay to Go-Live was multi-causal and could not be attributed solely to the subcontractor, with project management failures by the prime contractor bearing overall responsibility.
Lost profits for the AMS portion were recoverable because the limitation clause did not exclude direct expectation damages under the subcontract.
The plaintiff recovered substantial damages, while the defendant succeeded only in part on a limited counterclaim for specific breaches, unpaid invoices, and a contractual late-delivery penalty.
