Accountancy software trade body BASDA has lodged a complaint with the Advertising Standards Authority over claims by computer litigation consultant FMC to have ‘never lost a case in over 600 computer disputes’.
‘We’ve had several complaints from our members which enabled us to make a specific complaint,’ said BASDA chief executive Dennis Keeling. It is believed BASDA cited two cases where the client had to withdraw its action or pay damages after receiving adverse High Court judgments.
An FMC spokesman said the consultancy understood that BASDA cited last November’s High Court case in which textile manufacturer British Millerain lost a High Court case against its IT supplier, Open Systems Support and had to pay #40,000, plus costs.
In his ruling on that case, Judge Thornton QC said it had been ‘marked by considerable difficulties created by the way in which FMC carried out its forensic examination of the system and reported on it.’
Millerain had dropped FMC before the case had reached court, however, the FMC spokesman said. ‘We await the ASA’s adjudication,’ he added.
FMC’s activities were first investigated by Accountancy Age in 1996 when clients such as Rapid Racking complained that FMC’s fees for pursuing claims far exceeded the damage done by inadequate software systems.
In 1998, construction company Interclass engaged FMC to pursue a claim against Multisoft reseller Estimation over what Interclass felt was an inadequate accounts system.
Interclass dropped the action after FMC compiled a report for which it charged Interclass #30,000.
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