Oracle has again legal proceedings because of the ERP project

Oracle answered with counter actions a claim of the university from the State of New Jersey (USA) concerning the problem ERP project, having stated that the administration of educational institution wallowed in a judicial campaign with the purpose to hide own shortcomings.

The Montclair State University at the beginning of this month submitted a claim against Oracle, having declared errors and delays during implementation of the ERP project of which consultants are guilty that can cost $20 million additional costs. It is more, than it was provided by the initial estimate on PeopleSoft system implementation. As a result of Oracle it was discharged of the project at the end of last year.

However, according to the counter action submitted on Friday to district court of the USA, Moncler still owes Oracle more than $5 million for works and services rendered by the company.

"Instead of being calculated with Oracle for the performed works, the State University misleads a trick which, unfortunately, costs taxpayers of New Jersey millions of dollars and threatens with expenditure still of big millions", the statement says.

For successful implementation of ERP projects, suppliers, partners and clients jointly should correspond to the key roles as with implementation of repeatedly complicated software package old methods of work are transformed or are completely liquidated. In fact, the statement contravenes the statement of representatives of Moncler, at the same time denying violations from Oracle.

"When during the project there were questions, it became clear that the management of the university not fully understands the technology and tasks necessary for project completion, the statement says. - Instead of cooperating with Oracle and to resolve issues by negotiations, project managers from the Moncler university is based on the own working schedule, and being afraid of charges of delays, aggravated the discussed disagreements to a status of a general dispute".

Failures of Moncler "created a vacuum for external consultants, without having allowed them to affect incorrect factors in work", the statement says. "At the moment when Moncler decided to terminate the contract with Oracle and refused debt repayment, the lawyer from Illinois, mostly working in the project, at the expense of taxpayers still gets profit on the continuing dispute with Oracle", said in the complaint.

The lawyer in the document was not specified. The press secretary of the Moncler university did not respond to a request for the comment.

Representatives of Moncler refused to interact with the company on "critical points" and refused to make efforts for problem solving, Oracle adds. Instead, the university decided to begin the project with participation of other vendor - a step which will sharply increase project cost for taxpayers.

Oracle wants to receive the judgment under which money is due to it, denying the complaint. It is not clear yet, than the dispute between Oracle and Moncler will end, but in certain cases project orderers of ERP receive considerable compensation from sellers and consultants as a result of claims for allegedly failed projects.

Last year jury trial of the State of Alabama Mills awarded to the producer of forages for pets of Sunshine $61 million in the claim which that made to Ross Systems. The vendor filed the petition for appeal.