Pete Reid Law Wins Dismissal of Lawsuit Alleging Fraud and Negligence Against Software Developer

An e-commerce company brought a lawsuit against a software developer who it had hired to design and implement the Company’s web platform and dynamic content. The Company’s site featured listings of products and services specifically for seniors.

When the Company failed to meet its financial goals, it sued the Developer for more than $625,000 in damages, alleging breach of contract, fraud, fraudulent inducement, negligent misrepresentation, and unjust enrichment.

The Company initially filed a lawsuit against the Developer in their home county of Lubbock prompting the Austin-based Developer to retain Pete Reid Law.

Pete Reid Law immediately filed a motion to have the case transferred to Travis County and the motion was granted. The Company then improperly attempted to compel the Developer to turn over his confidential trade secrets in discovery.

At a hearing before Judge Stephen Yelenosky of the 345th District Court, Pete Reid argued that the Company’s true motivation for the lawsuit was to obtain the Developer’s proprietary information, and that there was no legal basis for its demands. The court agreed and the Company’s requests were denied with its lawyers receiving a stern rebuke by the Judge for its methods.

After further discovery, Pete Reid Law filed a motion for summary judgment, also known as a ‘trial on paper’, to have the case dismissed.

At a contentious hearing in Travis County, again before Judge Yelenosky, Pete Reid argued that the Company’s claims were barred by the statute of limitations, and that there was no genuine issue of material fact before the court. In response, the Company argued that the Developer had fraudulently concealed his mistakes, and that it was therefore unable to discover the alleged defects within the website until recently. The Company again argued that it needed to see the Developer’s source code for the website.

However, after hearing the arguments of counsel and taking his time to review the evidence and the lengthy written submissions, Judge Yelenosky issued a decision agreeing with Pete Reid Law. In a written order dated September 23rd, the Judge dismissed the Company’s lawsuit against the Developer in its entirety.

With this victory, the Developer was able to maintain the confidentiality of his work, and save his reputation in the industry.

2017-11-07T12:20:18+00:00 October 26th, 2016|Articles|