- 4 -
managerial, and administrative functions in a real-time manner.
Upon installation, this system would have given Wehr a competitive
edge in its marketplace, increasing its revenues and profits.
Pursuant to the terms of the contract, which were negotiated
by petitioner on behalf of Wehr, Xerox agreed to complete the
project by December 31, 1984. During the period in which Xerox was
to implement and install the new system, Xerox allowed Wehr to run
its (Wehr's) information services systems on Xerox's computers in
California on a fee-for-service basis of approximately $70,000 per
month.
From the inception of the project, Xerox fell behind schedule
and missed target dates. Wehr responded to Xerox's missed target
dates by withholding payment of the monthly fee for using Xerox's
computer services in California. In January 1985, at which time
Wehr estimated that only 1 to 2 percent of the required services
had been performed, Xerox warned Wehr that its continued failure to
pay would result in the termination of all services. Nonetheless,
Wehr still refused to pay, and Xerox terminated all services. At
that time, Wehr allegedly owed $652,984.33 to Xerox.
On February 11, 1985, Wehr filed a lawsuit against Xerox in
the United States District Court for the Eastern District of
Wisconsin, alleging breach of contract, intentional fraud and
misrepresentation, and negligent misrepresentation. Although no
specific amount of damages was stated, the complaint alleged that
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011