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Jury awards Hewlett-Packard billions for breach of contract

When a Louisiana business does not follow through on obligations and responsibilities set forth in a signed agreement, the other party may pursue the matter in court.  A jury recently awarded multinational information technology company, Hewlett-Packard $3 billion in a breach of contract dispute with software developer, Oracle. The two companies apparently had an agreement related to HP’s servers.

Hewlett-Packard took action against Oracle, claiming that the company breached an agreement it had with HP to develop software based on a certain chip type. Oracle alleged the company that made the chip announced that it was to become obsolete back in 2011. Oracle also asserted that it had no contractual obligation to keep developing software for HP for an unlimited period of time.

Four years ago,  a judge ruled that a valid contract did exist between the two entities. Since the jury’s ruling in HP’s favor, Oracle has announced its intentions to appeal both the verdict and the judge’s ruling that HP and Oracle were bound to a contract. Apparently, a former Hewlett-Packard CEO went to work for Oracle some time ago. As a consequence, an Oracle vice president noted that it might be impossible for the two companies to work amicably together.

Some have said that the recent breach of contract dispute between HP and Oracle is merely further evidence of their already contentious relationship. Some companies in Louisiana have experienced similar issues and have sought court intervention as means toward achieving satisfactory resolutions. Experienced assistance from a business and commercial law attorney is often a key factor in a successful outcome.

Source:, “Oracle owes HP $3 billion in damages for breach of contract, jury says“, Rich Mccormick, July 1, 2016