Software developer Oracle has been engaged in a battle with Hewlett-Packard regarding a contract between the two. HP claims the contract disputes arose because Oracle failed to honor its obligations contained within a signed agreement. Oracle, however, alleged that it was never bound by such a contract with Hewlett-Packard. A judge in a state outside Illinois ruled on the matter in 2012, determining that a contract did indeed exist.
Now, some four years later, a jury has awarded Hewlett-Packard $3 billion, finding that Oracle breached its contract with HP. Hewlett-Packard claimed that Oracle was contractually obligated to continue to produce software for its servers based on chips manufactured by Intel. Oracle, however, asserts that, in 2011, Intel announced that the chips were becoming obsolete. Consequently, Oracle alleged that it had no obligation to continue to develop software for HP.
It seems the relationship between the two business entities has always been contentious, at least since a former CEO from HP went to work for Oracle. Some expressed doubt as to whether any amicable agreement between the two companies would be possible. In light of the recent battle, some say it is evidence that neither company trusts the other.
Oracle says it will appeal the recent verdict regarding contract disputes with Hewlett-Packard. Company spokesmen say the company will also appeal the judge’s former ruling that a contract existed between the companies. Any Illinois business owner experiencing similar business challenges can consult with an experienced business and commercial law attorney in order to determine how best to proceed to resolve the issue.
Source: theverge.com, “Oracle owes HP $3 billion in damages for breach of contract, jury says“, Rich Mccormick, July 1, 2016
