This case was last updated from PACER on 08/25/2021 at 16:38:03 (UTC).

Lubrizol Corporation v. International Business Machines Corporation

Case Summary

On April 27, 2021, The Lubrizol Corporation (“Lubrizol” or “Plaintiff”), represented by Julie A. Harris and Nada G. Faddoul of Lubrizol, filed a contract lawsuit against International Business Machines Corporation (“IBM” or “Defendant”), seeking substantial and remedial relief with pre- and post-judgment interest for alleged fraud, alleged incompetence, and alleged breach of contract in delivering a defective, virtually unusable enterprise resource planning (“ERP”). This case was filed in the U.S. District Court in the Northern District of Ohio with Judge Dan Aaron Polster presiding. 

 

In its complaint, the Plaintiff alleged that, “In 2017, IBM convinced Lubrizol that it could vastly improve its operations as part of an upgrade to a new ERP system running on SAP S/4HANA software (“S/4”), a relatively new ERP platform developed by the software company SAP SE. The S/4 system that IBM touted was supposed to replace Lubrizol’s existing ERP system, which had been running on SAP’s flagship and widely used ERP solution, known as SAP ECC (ERP Central Component) software. IBM had been Lubrizol’s go-to technology advisor and partner for nearly a decade, working closely with Lubrizol on numerous projects, including helping Lubrizol run and maintain its SAP ECC system”. “Lubrizol hired IBM for the S/4 project (the “Project”) in early 2018 based on these IBM assurances. Lubrizol also relied on IBM’s statement that it’s unique qualifications would enable it to deliver the Project on an accelerated timeline, with the new S/4 system ready to launch, or “go live,” in just 14 months.”

 

The Plaintiff further alleged that, “the system failed a series of test in 2018 and early 2019, with functional gaps and other defects, IBM nonetheless insisted that Lubrizol to go live in February 2019. At IBM’s urging, the new S/4 system went live on July 1, 2019—with disastrous results. IBM delivered a virtually unusable system, and, in the months that followed, Lubrizol suffered crippling blows to its operations. Among other defects, the SAP S/4 system lost customer orders, provided incorrect production and inventory data, and generated incorrect shipping weights. Defective interfaces between different modules within the S/4 system resulted in missing inventory information.”

 

The Plaintiff also alleged that, “After paying IBM $37.8 million for the failed Project, Lubrizol had to spend another $10 million to remediate IBM’s deficient work. Lubrizol suffered $5 million in other losses stemming from system defects, and had to spend millions more to add functionality that IBM had failed to deliver. IBM represented that it had the ability and intention to deliver an S/4 system that would enable Lubrizol users “to make better decisions, perform at a higher level or contribute in more meaningful ways.” Instead, Lubrizol received a barely usable system riddled with defects and gaps.”

 

There are six claims for relief laid down by the Plaintiff. The first claim is for alleged breach of contract. The second claim is for alleged negligence. The third claim is for alleged negligent misrepresentation because IBM was fully aware that Lubrizol was relying on IBM’s representations about the qualities, characteristics, attributes, and completeness of S/4 software. The fourth, fifth and sixth claims deal with alleged fraud, alleged constructive fraud and alleged violation of Ohio Deceptive Trade Practices Act, respectively. 

 

In its prayer for relief the Plaintiff has requested the court to award an amount for breach of contract, breach of warranty, negligence, fraud and remedial relief for violation of Ohio Deceptive Trade Practices Act with pre and post – judgement interest and any other relief, legal, equitable, or injunctive, that this Court deems just.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-00870

  • Filing Date:

    04/27/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Contract - Other Contract

  • Courthouse:

    Ohio Northern District

Judge Details

Presiding Judges

Dan Aaron Polster

Christopher A. Boyko

 

Party Details

Plaintiff

Lubrizol Corporation

Defendant

International Business Machines Corporation

Attorney/Law Firm Details

Plaintiff Attorneys

Nada G. Faddoul

Attorney at Lubrizol

29400 Lakeland Blvd.

Wickliffe, OH 44092

Julie A. Harris

Attorney at Lubrizol

29400 Lakeland Blvd.

Wickliffe, OH 44092

Jason S. Takenouchi

Attorney at Kasowitz Benson Torres - New York

1633 Broadway

New York, NY 10019

Mark P. Ressler

Attorney at Kasowitz Benson Torres

1633 Broadway

New York, NY 10019

Defendant Attorneys

John Q. Lewis

Attorney at Tucker Ellis - Cleveland

950 Main Avenue

Cleveland, OH 44113

Jonathan F. Feczko

Attorney at Tucker Ellis - Cleveland

950 Main Avenue

Cleveland, OH 44113

Lauren B. Lindsay

Attorney at Quinn Emanuel Urquhart & Sullivan

10Th Floor, 865 South Figueroa Street

Los Angeles, CA 90017

Richard I. Werder, Jr.

Attorney at Quinn, Emanuel, Urquhart, Oliver & Hedges - New York

22Nd Floor, 51 Madison Avenue

New York, NY 10010

Stephen A. Broome

Attorney at Quinn Emanuel Urquhart & Sullivan - Los Angeles

10Th Floor, 865 South Figueroa Street

Los Angeles, CA 90017

 

Court Documents

#19

(#19) Reply in support of #12 Motion to dismiss (Partial) filed by International Business Machines Corporation. (Lewis, John) (Entered: 08/16/2021)

18 #1

Exhibit 1 - Declaration of L. Lindsay

18 #18

Main Document

12 #7

Exhibit 6 - RFP Response

12 #6

Exhibit 5 - 2018 Implementation SOW

12 #5

Exhibit 4 - 2018 Planning SOW

12 #4

Exhibit 3 - 2017 Design SOW

12 #3

Exhibit 2 - 2017 Strategic Alignment SOW

12 #2

Exhibit 1 - Standard Consulting Agreement

12 #1

Memorandum In Support of DE IBMs Partial Motion to Dismiss

12 #12

Main Document

#7

(#7) Order of Recusal. This case is returned to the Clerk for reassignment to another judge. Signed by Judge Dan Aaron Polster on 4/28/2021. (W,CM) (Entered: 04/28/2021)

#6

(#6) Corporate Disclosure Statement identifying Corporate Parent Berkshire Hathaway Inc. for Lubrizol Corporation filed by Lubrizol Corporation. (Harris, Julie) (Entered: 04/27/2021)

#3

(#3) Supplement to Complaint, - Civil Cover Sheet, filed by Lubrizol Corporation. Related document(s) #1 . (Harris, Julie) (Entered: 04/27/2021)

31 More Documents Available
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Docket Entries

  • 08/16/2021
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  • Docket(#19) Reply in support of #12 Motion to dismiss (Partial) filed by International Business Machines Corporation. (Lewis, John) (Entered: 08/16/2021)

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  • 08/12/2021
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  • DocketOrder [non-document] granting Motion for appearance pro hac vice by attorney Lauren Lindsey for International Business Machines Corporation. Local Rule 5.1(c) requires that attorneys register for NextGen CM/ECF and file and receive all documents electronically. NextGen CM/ECF registration can be done online at www.pacer.gov. Login with your PACER credentials, go to the Maintenance tab, click Attorney Admissions/E-File Registration, select Ohio Northern District Court and then select Pro Hac Vice. If you were previously granted pro hac vice status and are already registered to file electronically, it is not necessary to register again. (Related Doc #18 ). Judge Christopher A. Boyko on 8/12/21.(S,HR) (Entered: 08/12/2021)

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  • 08/11/2021
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  • Docket(#18) Motion for attorney Lauren Lindsay to Appear Pro Hac Vice. Filing fee $ 120, receipt number AOHNDC-10978500, filed by Defendant International Business Machines Corporation. (Attachments: #1 Exhibit 1 - Declaration of L. Lindsay)(Feczko, Jonathan) (Entered: 08/11/2021)

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  • 08/02/2021
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  • Docket(#17) Opposition to #12 Motion to dismiss (Partial) filed by Lubrizol Corporation. (Harris, Julie) (Entered: 08/02/2021)

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  • 07/30/2021
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  • DocketOrder [non-document] DENYING Plaintiff's Motion to Exceed Page Limit (Doc. #15 ). Twenty pages of substance is sufficient for a response to Defendant's Motion for Partial Dismissal (see Doc. #12 ). Judge Christopher A. Boyko on 7/30/21.(S,HR) (Entered: 07/30/2021)

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  • 07/27/2021
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  • Docket(#16) Response to #15 Motion for leave to exceed page limitations for Opposition to Defendant's Partial Motion to Dismiss filed by International Business Machines Corporation. (Feczko, Jonathan) (Entered: 07/27/2021)

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  • 07/27/2021
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  • Docket(#15) Motion for leave to exceed page limitations for Opposition to #12 Defendant's Partial Motion to Dismiss filed by Plaintiff Lubrizol Corporation. (Attachments: #1 Memorandum in Support, #2 Proposed Order)(Harris, Julie) (Entered: 07/27/2021)

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  • 07/22/2021
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  • DocketOrder [non-document] granting Motion for appearance pro hac vice by attorney Richard I. Werder, Jr for International Business Machines Corporation. Local Rule 5.1(c) requires that attorneys register for NextGen CM/ECF and file and receive all documents electronically. NextGen CM/ECF registration can be done online at www.pacer.gov. Login with your PACER credentials, go to the Maintenance tab, click Attorney Admissions/E-File Registration, select Ohio Northern District Court and then select Pro Hac Vice. If you were previously granted pro hac vice status and are already registered to file electronically, it is not necessary to register again. (Related Doc #14 ). Judge Christopher A. Boyko on 7/22/21.(S,HR) (Entered: 07/22/2021)

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  • 07/22/2021
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  • DocketOrder [non-document] granting Motion for appearance pro hac vice by attorney Stephen Broome for International Business Machines Corporation. Local Rule 5.1(c) requires that attorneys register for NextGen CM/ECF and file and receive all documents electronically. NextGen CM/ECF registration can be done online at www.pacer.gov. Login with your PACER credentials, go to the Maintenance tab, click Attorney Admissions/E-File Registration, select Ohio Northern District Court and then select Pro Hac Vice. If you were previously granted pro hac vice status and are already registered to file electronically, it is not necessary to register again. (Related Doc #13 ). Judge Christopher A. Boyko on 7/22/21.(S,HR) (Entered: 07/22/2021)

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  • 07/21/2021
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  • Docket(#14) Motion for attorney Richard Werder to Appear Pro Hac Vice. Filing fee $ 120, receipt number AOHNDC-10943828, filed by Defendant International Business Machines Corporation. (Attachments: #1 Exhibit 1 - Declaration of R. Werder)(Feczko, Jonathan) (Entered: 07/21/2021)

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10 More Docket Entries
  • 04/28/2021
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  • Docket(#7) Order of Recusal. This case is returned to the Clerk for reassignment to another judge. Signed by Judge Dan Aaron Polster on 4/28/2021. (W,CM) (Entered: 04/28/2021)

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  • 04/27/2021
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  • Docket(#6) Corporate Disclosure Statement identifying Corporate Parent Berkshire Hathaway Inc. for Lubrizol Corporation filed by Lubrizol Corporation. (Harris, Julie) (Entered: 04/27/2021)

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  • 04/27/2021
  • DocketNotice by Clerk that Lubrizol Corporation failed to file a corporate disclosure statement as required by Local Rule 3.13(b). (S,SR) (Entered: 04/27/2021)

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  • 04/27/2021
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  • Docket(#5) Motion for attorney Jason S. Takenouchi to Appear Pro Hac Vice. Filing fee $ 120, receipt number AOHNDC-10801083, filed by Plaintiff Lubrizol Corporation. (Attachments: #1 Affidavit Jason S. Takenouchi)(Harris, Julie) (Entered: 04/27/2021)

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  • 04/27/2021
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  • Docket(#4) Motion for attorney Mark P. Ressler to Appear Pro Hac Vice. Filing fee $ 120, receipt number AOHNDC-10801067, filed by Plaintiff Lubrizol Corporation. (Attachments: #1 Affidavit of Mark P. Ressler)(Harris, Julie) (Entered: 04/27/2021)

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  • 04/27/2021
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  • Docket(#3) Supplement to Complaint, - Civil Cover Sheet, filed by Lubrizol Corporation. Related document(s) #1 . (Harris, Julie) (Entered: 04/27/2021)

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  • 04/27/2021
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  • Docket(#2) Original Summons and Magistrate Consent Form issued to counsel for service upon International Business Machines Corporation. (Attachments: #1 Magistrate Consent Form) (L,MI) (Entered: 04/27/2021)

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  • 04/27/2021
  • DocketRandom Assignment of Magistrate Judge pursuant to Local Rule 3.1. In the event of a referral, case will be assigned to Magistrate Judge William H. Baughman, Jr. (L,MI) (Entered: 04/27/2021)

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  • 04/27/2021
  • DocketJudge Dan Aaron Polster assigned to case. (L,MI) (Entered: 04/27/2021)

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  • 04/27/2021
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  • Docket(#1) Complaint with jury demand against International Business Machines Corporation. Filing fee paid $ 402, Receipt number AOHNDC-10800835. Filed by Lubrizol Corporation. (Attachments: #1 Civil Cover Sheet, #2 Summons) (Harris, Julie) (Entered: 04/27/2021)

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