On January 10, 2020, the United States Court of Appeals for the Fifth Circuit affirmed an arbitration award of US$141.7 million in favor of firm client, Kemper Corporate Services, Inc., against Computer Sciences Corporation (CSC).
Sidley first represented Kemper in an American Arbitration Association proceeding that began in October 2015 following CSC’s failed implementation of core software systems for Kemper’s property and casualty insurance business. In November 2017, an arbitrator issued a final award in Kemper’s favor, finding CSC had breached a contract for the delivery of certain policy administration and billing software and awarded Kemper direct damages of US$84.3 million, prejudgment interest at an annual rate of 9% and US$7.2 million for costs and expenses Kemper incurred in the arbitration. The compensatory damages amount awarded was 100% of the amount Kemper requested at the hearing, representing money Kemper had paid CSC and invested internally on the failed project over more than six years. On September 26, 2018, the United States District Court for the Northern District of Texas entered a US$141.7 million judgment confirming the arbitration award and denying CSC’s motion to partially vacate the award. CSC and its parent company, DXC Technology Company, appealed the district court’s ruling, which has now been affirmed.
The Sidley team handling the arbitration and district court case was led by Paul Veith and included Chris Meyer and Chris Lee. Rob Hochman argued the appeal in the Fifth Circuit.