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Contracts Keyed to Farnsworth
By-Lo Oil Co. v. ParTech, Inc.
Citation:11 Fed. Appx. 538
ParTech, Inc. (defendant) agreed to supply By-Lo Oil Co. (“By-Lo”) (plaintiff) with software for the latter to use in managing its accounting, convenience stores, and oil and gas supplies. Their contract stated that ParTech would provide continuing support for a fixed monthly fee in order to make the software “Y2K-compliant.” In September 1997, By-Lo wrote ParTech to inquire about making the software Y2K-complaint by the year 2000. By-Lo received no response. In January 1998, By-Lo wrote ParTech again on the same matter. This time, By-Lo demanded a written response that ParTech would commit to ensuring that the software would be Y2K-compliant. ParTech replied that they had no answer to the question of whether the software would be Y2K-compliant by the year 2000. By-Lo traveled to ParTech’s headquarters in an attempt to secure a more definitive assurance to no avail. By-Lo then attempted to bring suit against ParTech but did so against a different company that also was named ParTech. Simultaneously, By-Lo, still concerned about the Y2K-compliance issue, bought a new computer system for its operations. ParTech, who was unaware of the lawsuit, finally provided a definitive answer to By-Lo in November 1998 and sent them the necessary software. By-Lo, who was operating on a different system, did not use the software and refiled their lawsuit against the correct ParTech.
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