Preventing and Resolving Software Implementation Disputes: Attempting to Resolve Disputes Without Litigation

This is the first in a series of three articles addressing how to manage legal risks associated with implementing new software systems. All three articles will be based upon the same hypothetical case. GoodHealth, a medical center, has entered into a license agreement and implementation agreement with MedData to implement ChartX, MedData’s new product. ChartX is designed to collect clinical and cost data with respect to individual patients and is to be used by clinical and accounting personnel to treat and bill patients. During user acceptance testing, GoodHealth discovers that the response time for retrieving and inputting clinical data is too slow and the cost data is inaccurate. In addition, the cost of implementing the software has exceeded budget estimates, and the project is badly delayed. This article will discuss techniques for getting the project back on track without litigation and, in case litigation cannot be avoided, creating favorable evidence that will help in recovering damages.