Lawsuit: Town Failed to Pay for Document Management Licenses


Saying the town failed to pay for a document management system, an Iowa-based financial services company is suing New Canaan for breach of contract.

According to a lawsuit filed Oct. 22 in Iowa District Court, the plaintiff, Cedar Rapids-based GreatAmerica Financial Services, “has suffered contractual damages” and “is entitled to take possession of the equipment identified in the agreements.”

According to copies of agreements included in the suit that date as recently as April 2019, the equipment in question includes several licenses for the “docSTAR eclipse” cloud-based tool that cost about $670 per month for five years and an “Epicor docSTAR” upgrade at $257 per month for 30 months.

“New Canaan breached the Agreements by failing to make the required payments,” according to the suit, filed by attorneys Randall Armentrout and Leslie Behaunek of Des Moines-based Nyemaster Goode P.C.

It was received Oct. 28 in the Town Clerk’s office.

The lawsuit also accuses the town of unjust enrichment. 

“New Canaan has possession of the equipment financed by GreatAmerica,” it said. “New Canaan will be unjustly enriched unless it is ordered to pay GreatAmerica the fair market value for the use of the equipment.”

The company is seeking a judgment against the town for “contractual damages, including attorney’s fees, interest, costs, and similarly related charges, and for such other relief as may be just and proper under the premises.”

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