A Multimillion Dollar Website and Breach of Contract

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.

Neiman Marcus Facing Creditors In Court

The cost of litigation is a huge challenge for businesses of all sizes. Large companies can threaten litigation in an effort to force opposing parties to drop claims against them. This is not only an extremely unfair practice, but it is against Texas law. Retailer Neiman Marcus has been accused by creditors of filing frivolous lawsuits in an attempt to stifle legitimate claims made by creditors.

Neiman Marcus is over five billion dollars in debt, which has created a contentious fight between the retailer and its creditors, specifically Marble Ridge Capital. Creditors have accused Neiman Marcus of moving around its assets to protect them from creditors. Marble Ridge Capital filed a lawsuit against the company, which in turn filed a countersuit claiming Marble Ridge was spreading harmful and incorrect information about the company. Now, both companies are waiting for a judge to decide whether or not Neiman Marcus’s countersuit can be dismissed under Anti-SLAPP laws.

Anti-SLAPP laws are meant to protect individuals and companies from frivolous lawsuits. What makes the lawsuits against Neiman Marcus and Marble Ridge Capital interesting is that their outcome could set a precedent for future creditors and debtors. If debtors are allowed to bully their creditors by filing additional lawsuits, it could give debtors an unfair advantage.

Getting Help With Anti-SLAPP Lawsuits

Anti-SLAPP lawsuits exist to ensure individuals and companies with more resources don’t trample over the rights of others. No one should be able to use his or her power and influence to deny someone else’s day in court. At Feldman & Feldman, our attorneys are experienced at helping individuals and businesses fight against larger adversaries. We use Texas Anti-SLAPP laws to dismiss frivolous lawsuits that were only filed to intimidate our clients.

If you or your business needs help with a legal matter, do not wait to contact one of our experienced lawyers today. We have extensive experience in a wide array of litigation matters, and we can protect your interests. Our attorneys can craft a personalized and efficient strategy to obtain a successful resolution for your case. Call us today to schedule a consultation.