Kemper Corporate Services Inc. v. Computer Sciences Corporation et al.

DisputeSoft was engaged in February 2016 by plaintiff Kemper Corporate Services Inc., in the AAA arbitration proceeding between Kemper Corporate Services, Inc. and Computer Sciences Corporation et al. Kemper had agreed to purchase and implement defendant Computer Sciences Corporation’s (“CSC”) property and casualty policy administration and billing application on the condition that CSC convert it from a mainframe COBOL platform to Java, in line with Kemper’s enterprise architecture objective to implement modern object-oriented applications that are easier and less costly to maintain.

In 2009, the parties agreed that CSC would produce a “generally available” Java version of its software and provide Kemper license to the application. However, instead of re-writing the software in Java from scratch, CSC utilized controversial technology that purported to automatically convert COBOL code to Java. The resulting “JOBOL” code was inefficient and difficult to maintain by both COBOL and Java programmers alike.

DisputeSoft utilized established tools such as SonarQube and JArchitect to analyze the application code for compliance with industry standards for developing reliable, efficient, scalable, and easily maintainable Java code. DisputeSoft also analyzed documents and testimony related to CSC’s product management process to determine whether the application met contractual and industry standards regarding what constitutes a “generally available” software product.

In November 2017, an arbitrator ruled that CSC breached the agreement and awarded Kemper all direct and consequential damages it sought. On September 26, 2018, a federal judge ruled against a request by CSC to vacate the arbitrator’s ruling, and upheld Kemper’s $141.7 million damages award, which CSC is expected to appeal.

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