Tri Valley Growers Sues Software Developer Oracle for Breach of Contract

Tri Valley Growers (TVG), a California agricultural cooperative that processes and markets its members' fruits and vegetables, has commenced a lawsuit against Oracle Corporation alleging fraud, negligent misrepresentation, malpractice and breach of contract. TVG claims the Redwood City, CA-based software developer failed to fulfill its contract and promises to modernize the food company's production and management systems.

TVG is asking for more than $20 million in damages.

The lawsuit follows Oracle's refusal to accept responsibility for what TVG considers a failed venture into enterprise resource planning (ERP) software by refusing to return what the company spent on Oracle software programs and related systems that have never worked.

TVG retained Oracle in November 1996 to install its ERP software package known as ``CPG'' that would enable the $800 million (annual sales) food processor and marketer to integrate and computerize its operations from raw product delivery to finished goods distribution. Oracle represented to TVG that it had earlier developed and bundled similar software for other consumer packaged goods companies.

Oracle was to license, install and support a complete suite of software that would provide TVG with the systems to modernize its production and management. In addition, Oracle promised to ``protect'' and fully ``stand behind'' its systems for TVG.

However, according to the lawsuit, the Oracle product never worked. As a result, TVG was forced to abandon the investment and retain another vendor to address its overall and Y2K systems needs. When TVG asked Oracle to refund its investment, Oracle refused.

``When you buy something, it should work. If it doesn't work, you should get your money back. We trusted Oracle was selling a commercial product that worked. As we found out, not only did the product not work for us, but a working ERP package did not even exist at the time the sold the product to us," said TVG president and CEO Jeffrey Shaw

TVG has filed the lawsuit in California Superior Court in San Francisco.

Edited by Pam Ahlberg