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BIS Computer Solutions, Inc. v. City of Richmond

United States Court of Appeals for the Fourth Circuit
122 Fed. Appx. 608 (2005)


Halifax Corporation (Halifax) entered into a contract with the City of Richmond, Virginia (Richmond) (defendant), under which Halifax would provide a computerized records-management system for Richmond’s police department. The contract acknowledged that Halifax had hired BIS Computer Solutions, Inc. (BIS) (plaintiff) as a subcontractor to fulfill some of Halifax’s obligations under the contract and provided that Halifax could not change its subcontractor without Richmond’s approval. Richmond was not satisfied with the software provided by Halifax and terminated the contract. Richmond paid all of the invoices submitted by Halifax, and Halifax did not object to the termination of the contract. BIS sued Richmond, alleging breach of contract. The district court determined that BIS was an intended third-party beneficiary entitled to sue under the contract between Richmond and Halifax. The jury returned a verdict for BIS and awarded damages of more than $2,200,000, which the district court reduced to approximately $1,600,000. Richmond appealed.

Rule of Law


Holding and Reasoning (Niemeyer, J.)

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