Bis Computer Solutions, Incorporated v. City Of Richmond, Virgini

122 Fed. Appx. 608 (2005)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

D and Halifax Corporation entered into a 'Service Contract' under which Halifax agreed to provide the City with a specified computerized system to manage its police department records. The contract recognized that Halifax had 'engaged P to meet certain of its requirements and responsibilities under the terms of this Contract,' and D insisted that Halifax 'not change its subcontractor during the performance of this Contract . . . without the written approval of D.' Halifax submitted product for testing, and it failed twice. D terminated the contract. D had paid Halifax all invoices that Halifax had submitted, and Halifax submitted no further invoices and raised no objection to D's termination of the contract. P sued D for breach. D moved for dismissal in that P was not an intended third-party beneficiary entitled to sue under the contract between D and Halifax. The court found as a matter of law that P was a third-party beneficiary entitled to sue under the contract between D and Halifax. The jury returned a verdict of over $2.2 million plus prejudgment interest for P. The court reduced P's damage award to approximately $1.6 million and limited the award of prejudgment interest so that it applied to only $507,000 of the award. D appealed.