The state of Hawaii is set to recover $31,775,000 after winning a lawsuit over a failed software project for the Hawaii Department of Transportation (HDOT).
In 2017, HDOT’s vendor, Ciber, Inc., and its primary insurer agreed to pay the department a total of $11 million. Just recently, the insurers agreed to settle the case for a total of $20,775,000 just before a May 17 arbitration hearing was about to start.
“When HDOT hires vendors on projects, it expects them to perform as required -- and the department is committed to holding them to account when they fail to do so,” Hawaii Department of Transportation Director Jade Butay said, according to an HDOT news release.
Jade Butay
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Ciber, a Colorado-based technology firm, was selected to design and implement a financial accounting system for HDOT’s Highways Division, but after five years and approximately $7 million in fees from the state, it was not able to deliver what was expected and abandoned the project in 2014.
Ciber sought bankruptcy in 2017, and after agreeing to pay $11 million, the company further agreed to assign the rights to Ciber’s excess insurance policies to HDOT.
HDOT subsequently filed a suit against Ciber’s excess insurers. The defendant fought HDOT for two years, refuting any responsibility to provide coverage, according to the news release.