Sterling, Inc Case Summary
Key Facts
Key facts include the parties involved: Sterling, Inc. and their state of the art computers, and NoBugs Corporation, the producer of microchips. Their relationship dates back 10 years, equally profitable. Due to an imperfection in the microchips, a series of explosions exceeding the amount of $20 million affecting Sterling Inc. and damaging their reputation. NoBugs has recalibrated the issue, regaining the high quality products that has been used with Sterling, Inc. in the past. Possible negligence with NoBugs Corporation, if knowledge of defect was known prior to dispensing to Sterling. Sterling believes that NoBugs should be responsible for the damages they have received.
Resolution Strategy
In this case, Sterling is looking to …show more content…
In addition to generating legal fees, lawsuits distract management from the company’s business, risk damaging the firm’s public image, and jeopardize relationships with the opposing party. (Bagley p. 55) Sterling has a good reputation in the industry partly due to NoBugs microchips. If NoBugs was aware of the defect, Sterling would also have a tort claim on NoBugs. In order to succeed on a failure to warn defective design claim under either a breach of implied warranty or negligence theory, plaintiff must meet the same burden. (Fent 1995) An investigation would need to take place to determine if negligence is present. Sterling may not recover all of its losses with other forms of dispute without litigation. Litigation may be necessary to recover all of Sterling’s losses, however, it may compromise the standing Sterling has with other suppliers; and would tarnish the relationship with …show more content…
A process called discovery, including depositions, interrogatories and requests for production of documents can be collected to help in the case. If negligence is determined through a discovery a tort claim can be pursued. This would help in the litigation process to get a return of all losses for Sterling. Abraham Lincoln once said that his secret for winning cases was to understand the opposition’s case better than the opposition did. (Domino, 2010).
With deciding to file a law suit, measures of company involvement need to be considered. The company needs to consider: (1) cost of employee time, (2) damage to company morale, (3) disruption of business, and (4) other hidden expenses. (Bagley p. 81). Once a budget is determined it is time to pursue the lawsuit, or settle outside of court. With a private settlement they can suggest NoBugs make an initial payment and remaining through discounts on future purchases. After review of the budget and investigation an approach towards settling can be determined. Settlement will likely be the most successful and recommended for resolution. But, if NoBugs refuses to come to an agreement litigation can be
Key facts include the parties involved: Sterling, Inc. and their state of the art computers, and NoBugs Corporation, the producer of microchips. Their relationship dates back 10 years, equally profitable. Due to an imperfection in the microchips, a series of explosions exceeding the amount of $20 million affecting Sterling Inc. and damaging their reputation. NoBugs has recalibrated the issue, regaining the high quality products that has been used with Sterling, Inc. in the past. Possible negligence with NoBugs Corporation, if knowledge of defect was known prior to dispensing to Sterling. Sterling believes that NoBugs should be responsible for the damages they have received.
Resolution Strategy
In this case, Sterling is looking to …show more content…
In addition to generating legal fees, lawsuits distract management from the company’s business, risk damaging the firm’s public image, and jeopardize relationships with the opposing party. (Bagley p. 55) Sterling has a good reputation in the industry partly due to NoBugs microchips. If NoBugs was aware of the defect, Sterling would also have a tort claim on NoBugs. In order to succeed on a failure to warn defective design claim under either a breach of implied warranty or negligence theory, plaintiff must meet the same burden. (Fent 1995) An investigation would need to take place to determine if negligence is present. Sterling may not recover all of its losses with other forms of dispute without litigation. Litigation may be necessary to recover all of Sterling’s losses, however, it may compromise the standing Sterling has with other suppliers; and would tarnish the relationship with …show more content…
A process called discovery, including depositions, interrogatories and requests for production of documents can be collected to help in the case. If negligence is determined through a discovery a tort claim can be pursued. This would help in the litigation process to get a return of all losses for Sterling. Abraham Lincoln once said that his secret for winning cases was to understand the opposition’s case better than the opposition did. (Domino, 2010).
With deciding to file a law suit, measures of company involvement need to be considered. The company needs to consider: (1) cost of employee time, (2) damage to company morale, (3) disruption of business, and (4) other hidden expenses. (Bagley p. 81). Once a budget is determined it is time to pursue the lawsuit, or settle outside of court. With a private settlement they can suggest NoBugs make an initial payment and remaining through discounts on future purchases. After review of the budget and investigation an approach towards settling can be determined. Settlement will likely be the most successful and recommended for resolution. But, if NoBugs refuses to come to an agreement litigation can be