DisputeSoft was engaged as a testifying expert in August 2019 by Conduent HR Services, LLC (“Conduent”) to assist in a breach of contract dispute before the United States District Court for the District of Maryland relating to a data migration cost proposal.
The business relationship between Conduent and ConnectYourCare, LLC (“CYC”) began in May 2013. Conduent’s primary line of business was the administration of Consumer-Directed Healthcare (“CDH”) programs including Health Savings Accounts (“HSAs”), Flexible Spending Accounts (“FSAs”), Health Reimbursement Arrangements (“HRAs”), and Health Incentive Accounts (“HIAs”). CYC provided computing and account maintenance services for CDH program providers, including record keeping services, debit card services, and consumer information tools. Under the parties’ agreement, CYC agreed to make its CDH technology platform, products, and services available to Conduent. The contract further provided that in the event of any expiration or termination of the agreement, CYC would provide Conduent with “transition assistance” services and Conduent would compensate CYC for commercially reasonable costs incurred during the transition period.
On June 27, 2016, CYC notified Conduent of its intent not to renew the agreement. On July 15, 2019, CYC brought suit, alleging that Conduent had failed to timely pay for CYC’s technical services. Conduent brought a counterclaim against CYC, alleging that CYC had refused to transition Conduent’s HSA data off CYC’s servers for a commercially reasonable price. Conduent subsequently engaged DisputeSoft to determine the work required to transition Conduent’s data from CYC’s platform, and whether CYC’s cost estimates for data migration were commercially reasonable.
Our Services
As testifying experts, DisputeSoft performed the following services:
- Researched industry standard sources to determine the categories of information to be evaluated when preparing a supportable data migration cost estimate.
- Reviewed project correspondence to identify the factors CYC relied upon in preparing its cost estimates for data transition.
- Drafted technical questions to be used during the depositions of CYC staff involved in creating CYC’s data transition cost estimates.
DisputeSoft Founder and Chief Advisor Jeff Parmet submitted an expert report and rebuttal report on behalf of Conduent, opining that CYC’s initial cost estimate lacked adequate support and was not commercially reasonable. Conduent and CYC subsequently entered into a settlement agreement for an unspecified amount in September 2021.
Related Experts: Jeff Parmet, Tom Ashley, T.J. Wolf