1.Robot Software Corp produced sophisticated software programs for computer assisted robots. Robot Software Corp was engaged by Robot Equipment Ltd. To develop software that would enable it to design robots to do more technically difficult jobs on productions lines. Robot Equipment ltd. Provided the engineering data necessary to develop the program and Robot Software Corp prepared the software.

The Software was tested by both Robot Software Corp and Robot Equipment Ltd. Using a similar robot with known design and performance characteristics as a model. The software appeared to work properly and robot equipment used the program to design a new complex multi use robot.

Unknown to Robot Equipment Ltd. The input of design data in particular sequence would have the effect of cancelling out the safety factor to be built into the robot. The input sequence was not the sequence used in the test but a technician used the particular input sequence in testing the new robot model. As a result when the new robot was tested the electrical system overheated and caught fire. The fire destroyed the equipment.

Robot Equipment Ltd. Brought a legal action against Robot Software Corp claiming $500,000 damages as its loss in the construction of the faulty robot.

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