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RACVI
RACVI
A motor vehicle insurance company which is similar in nature to the NSW NRMA.
UNISYS
UNISYS
An American-based global IT company which provides software/IT services and technology.
What led to the legal action?
What led to the legal action?
1993 - RACV required a workflow management system based on the imaging of documents.
For this task, they engaged Unisys to design and supply such a system.
The system was designed to electronically store and scan paper documents. Its purpose was to replace the existing paper-based system in RACV Insurance. It needed to scan documents in 3-4 seconds.
However, the system that Unisys delivered took between 20 and 40 seconds to scan documents.
Hence, RACV reverted to the old system.
1996 - Since attempts to fix the problem were unsuccessful, RACV terminated the contract and claimed Unisys made misrepresentations during the evaluation of a workflow management system and then failed to deliver.
Outcome of the Case
Outcome of the Case
The Supreme Court dismissed Unisys' appeal. (Unisys claimed there was no requirement for any specific configuration of the product)
It was concluded that Unisys did potray deceptive representation and was hence sued for $4 million.
RACV VS Unisys: Summary Video
RACV VS Unisys: Summary Video
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