Question
Hi I will be attaching the document's information below. This is an example portfolio task that I have been asked to do for my homework
Hi I will be attaching the document's information below. This is an example portfolio task that I have been asked to do for my homework in my Civil Dispute Resolution class. I have been asked to answer the following questions at the bottom of the document. Any help on how to answer these questions would be very much appreciated. I do not know why but I am finding it difficult to understand on how to do Material facts to establish the breaches of Contractual terms by HST
Material facts to establish the consequences of the breaches of Contractual
terms by HST and rejection of the Systems by S&P
Material facts to establish the damage and loss suffered by S&P
Do any issues of remoteness of damage potentially arise and why?
Do any issues of mitigation of loss potentially arise and why?
From what date does the limitation period for this claim start and expire and
why? a good case analysis in CDR, so any help on these questions would be very helpful. Thank you!
Scenario
You are a trainee solicitor with the firm of Robinsons LLP of 36 Avenue Way, Christlethorpe, Guildshire GU18 9ZX. You are working in your firm's civil dispute resolution department. Your supervising solicitor, Rebecca Jones, hands to you a proof of evidence that she recently took from Cheryl Drake, the managing director of a local company, Sport & Pleasure Limited ("S&P"). The client company owns and runs a sports leisure centre that incorporates a specialist healthy eating restaurant. S&P is in dispute with a local company, Hardy Software Tech Limited ("HST") that in 2019 supplied and installed two computer systems for S&P. The proof of evidence of Cheryl Drake is Document A attached. Complete the case analysis note.
Document A:
Cheryl Drake, managing director of Sport & Pleasure Limited ("S&P"), will say:
1. S&P owns and manages a sports leisure centre and specialist healthy eating restaurant at 6 - 9 Corinthians Lane, Christlethorpe, Guildshire GU94 6AP. The leisure centre consists of a state-of-the-art gym, 5 group exercise studios and 2 swimming pools, as well as 4 indoor and 6 outdoor astro turf pitches for hockey, football, etc.
2. In September 2019, S&P decided that it needed to replace our outdated booking and management system for the restaurant with up-to-date and efficient hardware and software. To that end, I attended The Commercial IT Trade Extravaganza at the Birmingham NEC on 14 September 2019. After viewing several products being demonstrated, I decided S&P might acquire a system developed by Hardy Software Tech Limited ("HST") which operates as a specialist IT company from its main office at 277 The Lane, Christlethorpe, Guildshire GU5 2ZY. I had a long conversation with HST's managing director, Vivien Wood. I described to her the set up with our leisure centre and restaurant. I explained that S&P needed hardware and software for the restaurant that would carry out the following basic tasks: reserve a table (or more than one table); record the name and contact information of the customer making the booking; transfer bar tabs to the correct tables; and calculate what tables are available and when and for how long.
3. I also stressed to her that at the time we were operating a paper-based customer loyalty reward card scheme and, rather than move to a plastic reward card, which we did not see as having any marketing value for us, we wanted something hitech. I made it clear that any new system would need to tie loyalty rewards to the customer's own electronic account and be fully integrated with our point-of-sales applications.
4. Vivien Wood told me that HST's hardware and software system known as "Restaurant Catering 1AV" would meet all of S&P's requirements. I asked her the price to supply and install it and she said approximately 34,500. I told her that I would get back to her.
5. After viewing several other possible systems for the restaurant, we decided to proceed with HST. In the meantime, we had started to look for a new booking system for the leisure centre. So, when I telephoned Vivien Wood on 30 October 2019 to order the Restaurant Catering 1AV system, I also asked her if HST could supply a suitable system for our leisure centre. Nothing was ever put in writing but at the request of the company's solicitors I have set out below a note of what I can recall about that conversation.
30 October 2019
Telephoned Vivien Wood of Hardware Software Technology Limited.
Impressed that she remembered me from The Commercial IT Trade Extravaganza at the Birmingham NEC last month.
I told her that I had 'phoned about ordering the Restaurant Catering 1AV system but was wondering first if her company was experienced in booking systems for leisure centres. Our chat went something like:
Me: Our sports leisure centre has a gym, 5 group exercise studios, 2 swimming pools plus 4 indoor and 6 outdoor astro-turf pitches that can be hired for hockey, football and the like.
Her: So, you'd want something akin to a hotel booking system for rooms but instead customers would be using the gym, a studio, a pool or a pitch?
Me: Yes, well obviously something a bit more sophisticated.
Her: Then our "Reservations System" is what you want.
Me: So, it can be programmed to accurately record what's happening at any point in time for each individual facility?
Her: Yes, it does exactly that.
Me: We want to create electronic accounts for customers from the details they supply when booking. Can your system do that?
Her: No problem. Our "Reservations System" is precisely what you need.
Me: So, could you do us a deal for both the Restaurant Catering 1AV system and the Reservations System?
Her: I think I quoted you 34,500 for the restaurant when we met. The "Reservations System" normally starts at 30,000 but obviously increases according to the sophistication levels needed. Yours are pretty high but how about 70,000 all in?
Me: That includes hardware and software installation of both systems?
Her: Yes, the whole lot.
Me: What about a timescale? Can the systems be up and running in time for Christmas?
Her: What if we said the end of the first week in December at the latest?
Me: Sounds like we have a deal. Payment on completion?
Her: OK, that's all agreed. I'll get my head of installations to come over next week to start things off. It's a pleasure doing business with you.
6. Over the next few weeks there were large numbers of staff from HST on our site installing both systems. Some hardware was supplied, such as a new server and some computer terminals but otherwise the software was loaded onto our existing restaurant and leisure facilities systems. By 3 December 2019 both systems were ready to go live and we organised a party for HST's staff and our staff in the restaurant to celebrate this. I also that day handed a cheque to Vivien Wood for 70,000 made payable to HST.
7. Unfortunately, neither system functioned properly after installation. I had the following emails from Derek Goodyear, our restaurant manager and Patricia Evan, our leisure centre manager, in respect of issues that were never resolved by HST.
Derek Goodyear's email of 6 December 2019 read as follows:
Sorry to report an initial problem with the system here. We've discovered that none of the bar tabs have been transferred to the customer's table number. Quite a few customers obviously thought we were providing free drinks! We've had to insist on all payments being made at the bar but customers are not happy with this. The total amount that we have lost through unaccounted for bar tabs is 1,298.34.
Patricia Evan's email of 8 December 2019 read as follows:
Cheryl, there's a glitch with the new system. None of the customer's details recorded at the time of booking are being transferred to the customer's new electronic account. We are having to enter all the details manually ourselves later. This is very time consuming.
Patricia Evan's email of 11 December 2019 read as follows:
A week of the new system and we are experiencing serious problems with current time reports for all facilities as these are consistently showing some facilities booked when they are not. For example, the system as I now look at it shows all facilities booked for the next 3 hours but I've checked and there's 1 indoor and 2 outdoor astro-turf pitches not in use and 1 pitch has not in fact been reserved by any customers for the entire day.
Derek Goodyear's email of 15 December 2019 read as follows:
Please note that on settling their bill, the system fails to allocate loyalty reward points to the customer's electronic account. As a result, the previous paperbased customer loyalty reward card scheme has been re-introduced.
Patricia Evan's email of 15 December 2019 read as follows:
The issues with the current time reports for all our facilities continue despite numerous reassurances that I've had from Hardy Software Tech's staff. I've had no choice but to employ an additional facilities manager to check all the bookings for the foreseeable future.
Derek Goodyear's email of 17 December 2019 read as follows:
The bar tabs are now the least of our worries. The system is not keeping proper track of table availability and the reports we get are inaccurate and misleading. So often we've been under booked and occasionally overbooked. Like Patricia, I've now had no choice but to employ an additional reservations manager to supervise the reservations, at least over the crucial Christmas and the New Year periods.
8. My staff struggled through Christmas 2019 and New Year 2020 but things did not improve with either system during January 2020. It became clear that we would have to replace both systems. On behalf of the Board, I wrote to VivienWood at HST on 29 January 2020 rejecting both systems and indicating that a claim for compensation would be made for our many losses. Subsequently, I have received the following emails from Derek Goodyear, Patricia Evan and Daniel South, our accountant, detailing various financial issues arising from the contract with HST.
Derek Goodyear's email of 14 May 2020 read as follows:
The replacement IT booking system has now been completed at a total cost of 39,451.50. After speaking to Daniel South, I estimate that we lost 3,300.00 in staff time wasted trying to deal with all the problems with the last system, particularly having to go back to using the paper-based customer loyalty reward card scheme.
Patricia Evan's email of 3 June 2020 read as follows:
I'm pleased to say that the new IT system we've had installed, albeit at a cost of 51,265.55, is working well. It is so very much better than Hardy Software Tech's system. The total salary we ended up paying to the additional facilities manager we had to employ whilst sorting out the last IT system was 4,197.30.
Daniel South's email of 19 June 2020 read as follows:
I've now completed the calculations for what we lost due to the Hardy Software Tech fiasco. The loss of profits we suffered based on the number of facilities undersold and loss of custom to the leisure centre was 41,295.00. It was worse with the restaurant, where ultimately the profits lost based on the number of tables undersold and loss of custom was 54,200.00.
Patricia Evan's email of 26 June 2020 read as follows:
I've now had a chance to meet with Daniel South to look at the time our staff wasted trying to sort out all the issues that came up with Hardy Software Tech. The most significant item was manually creating customer electronic accounts. All in all, we put the figure at 3,925.00.
Derek Goodyear's email of 26 June 2020 read as follows:
Apologies for the delay. I can confirm that the salary paid to the additional reservations manager over Christmas 2019 and the New Year 2020 totalled 3,478.90.
Portfolio Questions
- What date did the breach of contract occur?
- What are the material facts needed to establish basis for the relevant contractual terms in respect of the leisure centre system ("the Reservations System")
- What are the material facts needed to establish the oral contract ("the Contract")
- What are the express terms of the Contract that are relied on by S&P
- In the alternative, what could be the implied terms of the Contract that are relied on by S&P
- What are the material facts needed to establish the purported performance of the Contract by HST
- Material facts to establish payment made by S&P
- Material facts to establish the breaches of Contractual terms by HST
- Material facts to establish the consequences of the breaches of Contractual terms by HST and rejection of the Systems by S&P
- Material facts to establish the damage and loss suffered by S&P
- Can any issues of remoteness of damage potentially arise and why?
- Do any issues of mitigation of loss potentially arise and why?
- From what date does the limitation period for this claim start and expire and why?
Thank you so much if you have read this far, I hope I explained everything clearly!
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