SUPER Tech Inc., a local company that provides computer and networking solutions, has sued California-based My Choice Software LLC. for providing a product that did not conform to the CNMI government’s specifications.
Super Tech, which is demanding a jury trial, sued My Choice and its representative, Gabriel Magana, for fraud, breach of contract, promissory estoppel, and unjust enrichment.
Represented by attorney Michael Dotts, Super Tech is asking the District Court for the NMI to issue an order awarding Super Tech damages in the amount of $899,800; consequential damages and lost profit of $55,000; and punitive damages three times the actual damages.
According to the civil complaint, in February 2022, the CNMI government put out for bid the purchase of Microsoft 365 licensing (ITB22-DOF/OIT-42200084).
On or about March 10, 2022, Super Tech sent Magana an e-mail containing a screenshot of the CNMI government’s specifications for the bid and requested a quotation.
On or about March 19, 2022, Magana sent Super Tech a quotation containing a price of $844,800, and promised to provide a product which conformed to the CNMI government’s specifications.
But according to the lawsuit, My Choice knowingly provided a quotation for a product which would fail to conform to the CNMI government’s specifications.
On March 23, 2022, Super Tech again sent a copy of the specifications to Magana and asked whether My Choice’s quotation met the specifications.
Super Tech on March 25 again asked whether Magana could ensure that My Choice would meet the specifications 100%.
On March 29, Magana stated that he made sure with his Microsoft team that they met all the requirements Super Tech needed in the quote request.
As Super Tech received Magana’s promises, it did not make an effort to obtain other quotations, the lawsuit stated.
“If Super Tech had not relied on My Choice’s false representations that it would provide a conforming product, then it would have timely obtained a product which conformed to the CNMI government’s specifications from another vendor,” the lawsuit stated.
On April 5, Super Tech submitted its bid to the CNMI government.
On April 30, Magana again promised that My Choice could provide software that met the requirements of the government, the lawsuit stated.
It added that My Choice knew that it had no basis for representing that its product would conform to the CNMI government’s specifications.
On May 5, Super Tech asked Magana for 30 days to pay, to which he agreed.
In a memorandum dated May 19, 2022, acting Director of Procurement Services Francisco C. Aguon authorized the CNMI Secretary of Finance/Office of Information Technology to implement a contract with Super Tech for the Microsoft 365 licensing.
In a notice to proceed dated May 19, 2022, the acting Secretary of the CNMI Department of Finance Margaret Bertha C. Torres authorized Super Tech to purchase the Microsoft 365 licensing.
On May 25, Super Tech transferred $844,800 to My Choice.
After receiving the payment, My Choice delivered the incorrect Microsoft product to Super Tech that failed to conform to the CNMI government’s specifications, the lawsuit stated.
As a result, Aguon notified Super Tech on July 18, 2022 that he was canceling the contract.
My Choice, for its part, denied Super Tech’s request for a refund.
On Aug. 8, Super Tech again asked My Choice for a refund and advised My Choice that the CNMI government was retaining counsel regarding the matter.
The lawsuit stated that Nate Mumme, chief executive officer of My Choice, suggested that Super Tech may have to pay a 15% cancelation fee.
Super Tech said it would not pay a cancelation fee since the mistake was made by My Choice and Super Tech never activated or used the software.
On Aug. 10, Super Tech informed My Choice that the plaintiff was retaining counsel.
On Aug. 17, Mumme told Super Tech that My Choice would charge a 15% cancelation fee.
On the same date, Super Tech reiterated to My Choice that Super Tech wanted its money returned.
My Choice has not paid or repaid any money to Super Tech, the lawsuit stated.
