If you suspect over billing but are concerned that it went on too long for you to bring a claim, think again. This case involved a waiver of rights when the company only recognized the over billing 9 years later!
Matthew C. Donahue, Litigation Partner at Eno Martin Donahue LLP in Lowell, MA successfully tried a a breach of contract claim related to over billing and mileage charges charged by a service provider vendor to a manufacturing client in Lowell. Judgment entered on behalf of the Defendant for $200,000 including post judgment interest.
The court notably found evidence of fraudulent billing practices by the vendor over a 9 year period of services provided.
This is instructive for clients, that because of the fraud by the vendor, the plaintiff could not have waived its rights to pursue the case.
The operative legal question was the delay in the client learning of the over billing. The client noticed inflated expenses and investigated the cause. After review of invoices internally, it was shown that the clients vendor double billed them for hours worked in the repair of the independent boiler system necessary for the operation of their facility in Lowell.
While testimony seemed to suggest that the billing error was related to a change in personnel by the vendor, the court took a more sever outlook and found explicit fraudulence in the vendor’s billing practices overcharging rates and mileage on contracts that were fixed price agreements.
Plaintiff sued and Judgment found for the Plaintiff for a judgment of 200,000 including post judgment interest, the case filed in 2013 was tried in 2017. Final decision was entered late in 2018.