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This is a memorandum regarding the unprofessional actions of SGE regarding their promise to supply, install and test Tsunami monitoring systems for the Heald College Ocean research station located on the waters bordering the Alcatraz region. Their unethical practices caused great losses to the company and we have no choice but to sue them for the damages caused.
On April 3rd 2010 a meeting was held at the Heald offices with the president of Smart Guys equipment (SGE) Lewis Skolnik. Before the soliciting of SGE's offer, there existed a number of offers that Heald was willing to accept instead of the one given by SGE. A number of rival companies had made particular offers that were in excess of 20, 000$. This of course is cheaper than what SGE had previously stated. On the meeting held at the Heald offices with Mr. Skolnik, he downsized the cost bringing it to about 28,000$. Heald had no choice but to accept the offer seeing as they promised to complete the work by the 30th of July 2010. Satisfied with the agreement, Heald went ahead to write a letter to the contracted company to document the agreement with SGE officials.
The letter was sent to SGE on 4th April 2010, only a day after the fruitful discussions. A month after all the discussions and agreements were finalized, the SGE offices called the Heald management to request for permission to complete their services on the 1st of July 2010, 29 days before the agreed date of completion. SGE further confirmed that they would complete the work earlier with no extra costs. They also pointed out to Heald that they would finish the work in time for the 4th of July celebrations. This would be beneficial as Heald would be able to monitor the activities taking place in the waters during the celebrations.
Days later, the SGE Company signed a contract with EXXON Company which specified that the latter would be sub contracted to provide workers who would assist SGE in installing the Tsunami watch equipment. This arrangement proved fruitful as SGE were quite satisfied with the monetary agreements. Things however took a plunge when a while later SGE informed Heald that they wouldn't be able to make do the work for reasons they did not disclose. Heald was clearly inconvenienced because time was quickly moving and no work had begun on the base. Heald decided to take control of the situation by quickly looking for a substitute company that would be able to complete the job in the stipulated time. Heald searched but to no avail. All other similar companies were either fully booked or could not provide the complete services. At this point, Heald had already suffered huge losses that could not be accepted by the accounting department, not only because of the amount of money but also due to the fact that they were not the cause of the loss. This is when us as Heald decided to press charges and sue SGE Company for the damages caused, both human and financial.
The two parties, Heald and SGE were of course in total agreement at the beginning but the malpractices of SGE caused the company huge losses and also damaged their reputation in front of major shareholders and customers alike. EXXON however is a neutral party in this situation as they were not personally involved with Heald. As mentioned, they were in fact subcontracted by SGE to provide assistant services to complete the job on the Heald monitoring base. They therefore will not be included in the law suit as there was no contract or transaction between them and Heald College. The procedural laws governing lawsuits obviously differ from case to case therefore it is mandatory that Heald College understands the procedures to know their opportunities and limitations as the plaintiff. Federal laws stipulate that we as Heald will have to go through the courts to acquire damages or a settlement that would be able to cater for the losses incurred by SGE.
Heald will supply SGE with a notification of the charge so that they would provide a response regarding the lawsuit. After SGE files an answer regarding the charges they face, they will be expected to defend themselves or either agree to the settlement that Heald request, which is for them to supply, install and test the equipment before the 1st of July 2010. Should SGE dispute the terms we have laid, we will proceed to a trial which would be most unfortunate as it would mean precious time lost and undue negative press on all sides. As the Contract that SGE signed with us as Heald to provide technical services to the research and monitoring water base stipulates, the suit expects that SGE will be able to deliver. We had provided a date adequate for them to complete the work but they in fact pushed it up, promising that they would deliver almost a month earlier. Seeing as they are very competent, Heald took them up on their offer, only for them to back out at the last minute. Heald will not settle for anything less as funds were already issued to ensure the commencement of the project.
As SGE broke their contract, so will they have to face the music as the lawsuit stipulates. Their highly unethical and not to mention unprofessional practices will be used as defense against them. They will have to deliver on the contractual promises they made. No modifications will be made to favor SGE as they will have to complete their task as stated by the contract. No leniency or mercy will be shown as SGE caused Heald great inconvenience. As is common in many lawsuits that include suing the other party for damages, it is anticipated that the defendant, in this case SGE would attempt to refuse the claims. The Heald legal department headed by myself is ready with plentiful evidences that will attest to the prior agreements between Heald and SGE. Not only do we posses the contract signed by both parties in presence of their lawyers and myself, we have the letter of endorsement sent to them on the 4th of April 2010, confirming their approval to work on the Heald project. We also possess footage obtained from the security cameras on the day of the meeting (3rd April, 2010) that saw Mr. Skolnik agree with Heald officials regarding the contract and payment.
In addition, we have recordings of the telephone conversations between SGE and Heald management. The first one if of SGE calling the Heald offices to inform them that the would be able to finish the work by the 1st of July 2010. The Heald management was quite skeptical but nonetheless impressed that SGE would able to deliver so fast. It is undisputed that the person holding the conversation was in fact Mr. Skolnik and it is therefore credible evidence. The second telephone conversation was that of SGE informing us that they would not be able to complete the job. All these items, the signed contracts, the letter, video footage and telephone conversations all attest to the fact that SGE made a promise to do a service yet they fell short thus the court must push them to deliver.
EXXON though not a major player in this lawsuit also has an obligation to fulfill its stipulated duties as it promised to provide personnel for the off shore project. The fact that EXXON received a particularly sizable amount of funds to execute the task demands that they should have played their part in completing the job. Their failure to do so is also a part in SGE's defense but all in all that is not a concern of Heald as we paid in full for the services of SGE. Whatever technical or manual difficulties that may have arisen prior to the task should have been immediately cleared up and/ or the SGE and ultimately Heald management notified. This would have provided an opportunity to push the days forward as previously suggested to prepare a fresh contract to review the job description.
Heald as the company that suffered the loss and inconvenience is entitled to a decent settlement that will be able to cover all the cost and recover the timeline or instead have the work completed by SGE and EXXON as stipulated by the signed contracts, lest the matter be taken to trial. Other than, this Heald does not wish to be involved in any other way with companies that are not reliable and/ or accountable. In the future, we seek to be more cautious in dealing with companies that have been assigned with a delicate and fundamental task. SGE and EXXON have caused irreparable damage not only in terms of funds and labor, but also the student in Heald college have been delayed in the educational progress as this project was to create a facility that intellectually houses students from the faculty of science.