Computer Sciences Corporation v. Federal Home Loan Mortgage Corporation

    DisputeSoft was engaged as a testifying expert by Federal Home Loan Mortgage Corporation, doing business as Freddie Mac, in October 2016 in the matter of Computer Sciences Corporation v. Federal Home Loan Mortgage Corporation before the U.S. District Court for the Eastern District of Virginia.

    In November 2014, Freddie Mac contracted with Computer Sciences Corporation (CSC) to provide information technology services to design, install, and manage Freddie Mac’s data network and telephone system within a central Cisco platform. The services were implemented in March 2015, and in August 2015, Freddie Mac terminated the agreement for cause. CSC filed a breach of contract suit in January 2016, alleging that Freddie Mac failed to pay invoices for services rendered and termination charges due under the agreement.

    Nature of Dispute

    Freddie Mac alleged that CSC:

    1
    Lacked the required experience and resources for the job, forcing Freddie Mac employees to perform tasks CSC should have performed.
    2
    Employed inadequate and unqualified personnel that lacked the training and expertise necessary to prevent or remedy service issues.
    3
    Failed to adequately plan and prepare for the project, causing operational problems.

    CSC alleged that Freddie Mac:

    1
    Failed to disclose the outdated state of Freddie Mac’s existing equipment and infrastructure, resulting in the need for accelerated remediation.
    2
    Placed Freddie Mac employees in supervisory roles over CSC employees.
    3
    Unreasonably withheld approval on change orders and refused to approve project milestones, delaying the receipt of needed information.

    Our Services

    As a software expert, DisputeSoft:

    1
    Interviewed fact witnesses and reviewed and analyzed project documents, incident tickets, and root cause analysis reports.
    2
    Identified and documented substantial evidence to establish a pattern of poor outsourcer performance.

    DisputeSoft Founder and Chief Advisor Jeff Parmet proffered an expert report, rebuttal report, and deposition testimony on behalf of Freddie Mac. The court granted Freddie Mac partial summary judgment, finding that Freddie Mac was not obligated to pay the disputed invoices. On appeal, the U.S. Court of Appeals for the Fourth Circuit affirmed the judgment of the district court.

    Jeff Parmet

    Jeff Parmet (1946 – 2023)

    Founder & Chief Advisor (2003 - 2023)

    Jeff Parmet was a widely respected IT dispute resolution specialist who served as a con…

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