Major Financial Services Co. Terminates Vendor Relationship

Industry: Insurance & Financial Services

Key Facts

After a tech vendor failed to meet its commitments, we advised on litigation strategy and drafted a breach notice.
When the client decided against litigation, we developed a strategy to negotiate termination and negotiated a confidential agreement to settle outstanding claims.
The negotiation eased the transition to a new vendor and preserved our client's right to enforce claims against the old vendor.

We were asked to serve as lead lawyers in negotiating the termination of a relationship with a large Indian technology outsourcing vendor that was failing to meet its contractual commitments.

We first performed a litigation analysis for the client to determine the strength of claims against the vendor. We also counselled on litigation strategy and drafted a breach notice that was delivered to the vendor. Ultimately, when the decision not to pursue litigation was made, our team formulated a strategy for the negotiated termination of the agreement, which included the negotiation of a services disengagement plan and follow-on transition and staff augmentation services, with services to be provided in various US and Indian locations. We also drafted and negotiated a confidential settlement agreement to settle outstanding claims due to the vendor’s alleged performance failures.

The successful negotiation ensured a smooth transition to a new vendor and also preserved our client's rights to enforce claims against the former vendor in the future — two goals identified as priorities by senior management.