April, 2016 | The Law Offices of Gregory D. Jordan

Texas mental health center files breach of contract lawsuit against software provider

A mental health center in Texas is suing a software provider for breach of contract.

The lawsuit was filed in state district court in Waco by the Heart of Texas Region Mental Health Mental Retardation Center (MHMR), against CoCentrix Inc., a Florida-based company. The lawsuit seeks a refund of $250,000 that the agency claims it paid the software provider, as well as triple damages available under the Texas Deceptive Trade Practices Act.

According to the lawsuit, MHMR contracted with UNI/CARE Systems Inc. to provide software for a records system. CoCentrix later assumed all obligations under the contract, which specified that support documentation, training, installation and consulting would be provided.

MHMR claims that it paid $250,000 under the contract, but the software provider was not able to provide a system that met the necessary criteria. In fact, MHMR alleges that the software system provided could not even be tested successfully. The agency claims that the contract provides for the return of the $250,000 if the system could not be properly installed.

According to the lawsuit, CoCentrix missed more than 10 deadlines for the software to be completed. MHMR states that it terminated the contract on or about September 3, 2015 and demanded a refund of the money it had paid to the defendant, but CoCentrix did not refund the money.

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