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J.D. Edwards & Co. v. Podany

168 F.3d 1020 (7th Cir. 1999)

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J.D. Edwards & Co. v. Podany

United States Court of Appeals for the Seventh Circuit

168 F.3d 1020 (7th Cir. 1999)

Facts

SNE entered into a contract to buy computer software services from J.D. Edwards & Co. (Edwards) (plaintiff). SNE had chosen Edwards’s software over another company’s called BPCS because BPCS lacked a configurator, which SNE needed. SNE then hired Randy Podany (defendant), a consultant, to review the project for which SNE hired Edwards. Podany advised SNE that the project and the hiring of Edwards were unsound. Specifically, Podany advised that SNE’s business needs should be defined before installing any software. As a result of this determination, he advised SNE to stop installing Edwards’s software. Subsequently, Podany advised SNE to use BPCS, the previously rejected software. Eventually, the BPCS software failed. BPCS was the only software that Podany was familiar with and he only advised SNE to use it in order to get a job with SNE’s parent company and also to procure further business for his consulting employer. Edwards brought suit against Podany for inducing SNE’s breach of contract. The district court found in favor of Edwards. Podany appealed.

Rule of Law

Issue

Holding and Reasoning (Posner, C.J.)

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