Mediation Case Studies
The Problem – IT disputes are very complicated and become very expensive. IT Limited wrote a specific software package for a client, at the time of writing and implementing it they advised the client to upgrade their hardware as there could be problems integrating the software with some of their hardware as it was a few years old, giving them the option to purchase the hardware through them, or someone else if they could source it cheaper, to minimise costs the client refused.
The inevitable happened the software only worked on certain procedures and actions, in other cases it worked ad hoc or not at all. The client put this down to a training issue, IT Limited advised that under their contract they had supplied all the necessary training, however as a gesture of goodwill they would supply 1 days worth of training to iron out any difficulties, they advised at the time this was indeed a hardware issue and not a training or software problem.
Months passed and IT Limited heard nothing, they had not supplied the one days training as the client never got back to them. A solicitors letter was received to which IT limited responded, advising that this is a hardware issue, to rectify any process / procedural conflicts new hardware would have to be sourced either through them or another supplier, then the software would have to be reinstalled, for which there would be additional costs.
The Solution – Letters went back and forth, until litigation was instigated. Mediation was entered into, IT limited represented themselves and advised what they had the whole time, ‘we told you this would happen, you did not listen to us’.
To offer a commercial resolution IT Limited offered to provide the new hardware with a 10% discount and to reinstall all the old software at cost, with half a day’s training, the client agreed and bore all his own legal expenses which IT Limited refused to pay.
- The mediation took 3 hours compared to the 6 months this IT dispute had already gone on.
- The mediation cost each party £300.00 each compared to the thousands they had already spent on legal fees and the thousands they would have had to spend had they continued with Court action.