Almost every business needs a website. For some businesses, website functionality is crucial to generating revenue; and, most types of marketing (websites included) are expensive endeavors. But what if you paid $32 million for a website that didn’t meet your expectations? That’s exactly what happened to car rental giant Hertz, which is suing its former marketing company, Accenture LLP, for breach of contract.
Hertz engaged Accenture to create a new website and mobile applications. From 2016 to 2018, Hertz paid Accenture over $32 million, but Hertz claims it did not get the website and mobile apps it wanted. According to the lawsuit, Accenture did not develop medium sized displays for the new website and mobile apps. While desktop and mobile sized displays were created, tablet-sized displays were not. Hertz requested the website and apps be “responsive” meaning they would automatically resize for the device on which they are accessed, but the Accenture “demanded hundreds of thousands of dollars in additional fees to deliver the promised medium-sized layout.”
Hertz also claims Accenture failed to deliver website coding that was secure, which could make the website vulnerable to hackers. Possibly the largest problem with the website is that it wasn’t extensible, meaning it couldn’t be expanded to be used for Hertz’s global brand. Hertz asserts the decision to disregard extensibility was deliberate and made without Hertz’s knowledge or consent. A website that’s not extensible leaves Hertz needing to spend additional marketing dollars developing websites and apps for global use.
What may seem like a simple breach of contract dispute on the surface can actually become much more complex in the digital age. Websites and mobile apps are incredibly complicated. When companies enter into a contract that does not discuss the specifics of every aspect of the project, disputes can easily arise between the parties as to what is included in the scope of work. Digital assets like websites are presenting unique legal challenges. When contracts involving websites are not thoroughly drafted, there’s more than enough room for disputes.
Houston Contract Attorneys
At Feldman & Feldman, our Houston contract attorneys understand the complexities of drafting contracts involving websites. We also regularly represent individuals and business owners in breach of contract disputes involving intangible marketing materials. If you are involved in a breach of contract dispute, contact us today to schedule an appointment with one of our dedicated attorneys.