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California breach of contract dispute continues

Readers may remember reading earlier this summer about a contract dispute between HP and Oracle which was winding its way through the judicial system. A California judge has now ruled in HP’s favor, finding that Oracle did engage in a breach of contract after deciding to drop its support of HP Itanium servers. According to the judge’s ruling, Oracle must now continue to make database software that support Itanium until HP actually discontinues selling its Itanium servers.

HP announced its satisfaction with the court’s decision. The company issued a statement indicating that this courtroom victory was not just a win for them but also for HP customers. The statement also declared that HP now expected Oracle to fulfill its end of the contract in the wake of the judge’s ruling.

Oracle, on the other hand, expressed its dissatisfaction with the ruling. It issued a statement representing that the company fully intends to appeal the decision handed down against them. Oracle apparently believes that the argument HP made in this lawsuit would turn technology partnerships in Silicon Valley “upside down.” In addition to appealing, Oracle also evidently plans to continue pursuing its cross-claims against HP that allege HP misled both its customers and partners.

This breach of contract dispute doesn’t seem to be slowing down completely, even though HP has gained an initial courtroom victory. With Oracle’s plan to appeal and pursue counterclaims, this California contract dispute could continue for some time. This case is just one example of how complex contract disputes between different companies can play out.

Source: Business Insider, “HP Wins Its Lawsuit Against Oracle,” Julie Bort, Aug. 1, 2012