Childrens Hospital of L.A. wins $2M in overcharges on computer systems outsourcing contract
Clients Childrens Hospital Los Angeles
Jones Day successfully represented Childrens Hospital of Los Angeles (CHLA) in an AAA-administered arbitration involving a complex contract dispute between the hospital and Computer Sciences Corporation (CSC). CHLA hired CSC to serve as the computer systems integrator for the hospital's new clinical information system. The contract was a fixed-price, fixed-scope agreement. Several years into the implementation, CSC sought additional fees beyond the fixed-price because it purportedly performed additional work caused solely by CHLA or its software vendor. The hospital refused to pay the additional fees because any additional work performed by CSC was at least partially caused by CSC's failure to meet its own contractual obligations and specifications. CSC initiated the arbitration and sought more than $14 million in damages and interest. After a four-week trial, the Panel completely rejected CSC's claims and awarded it nothing. The Panel awarded CHLA approximately $2 million on its counterclaims and ordered CSC to pay CHLA's costs. The award was confirmed by the California Court of Appeal.
Computer Sciences Corporation v. Childrens Hospital Los Angeles, No. 71 117 Y 01164 04 DEAR (AAA)