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Contract dispute brewing between company and state

Contractual relationships of all kinds exist for very good reasons. Businesses and individuals each desire and rightfully need the ability to ensure that what is promised to them actually comes to fruition. Contract enforcement also provides options for restitution if needed. Thousands of Floridians enter into contracts daily whether personally or professionally with the goal of successful completion of the terms.

Corporate contracts can be established with individuals, other businesses or government entities and any party can initiate a contract dispute. In Montana, the Department of Public Health and Human Services is currently hoping to avoid a corporate dispute but has issued a strong warning to Xerox Corporation for an alleged breach of contract. The technology company was tasked with replacing the state’s computer system responsible for all Medicaid billing per a contract signed in 2012. The company has implemented similar solutions in other states before.

According to reports, no milestones have to date been met and the health department estimates that the state has lost close to $13 million due to the lack of progress on the project. Xerox officials have received notice from Montana that the contract will be cancelled if a resolution cannot be found. The state may also pursue other actions if this happens although this is allegedly not the route that the state desires.

A contract dispute can become very complex very easily. The need to understand all legal issues involved is real and persons involved in such situations may wish to reach out to legal professionals for help with this.

Source: Billings Gazette, “Montana says Xerox is in breach of Medicaid contract,”  June 30, 2014

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