Operations

JB Hunt sues MercuryGate for $3.1 million

Aug. 5, 2015

J.B. Hunt Transport Inc. (JBHT) says the transportation management software (TMS) installed by MercuryGate International Inc. is “virtually useless” in serving its Integrated Capacity Solutions (ICS), or brokerage, division and the intermodal giant is now going to court to seek a refund.

JBHT alleges breach of contract and negligence, according to the recent filing in U.S. District Court in Arkansas.

North Carolina-based MercuryGate in November 2012 successfully bid to replace the ICS division’s internal systems with its TMS, and agreed that the work would be completed and “fully operational” within one year, the complaint states.

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“MercuryGate has failed to timely provide the numerous essential features and functionality required under the Agreement, in addition to otherwise failing to perform and provide services as warranted thereunder, and as of the filing of this action the Software is virtually useless for all excepting approximately 1% of ICS's business,” JBHT says.

MercuryGate, according to the complaint, has refused to refund almost $3.1 million. Additionally, JBHT says the company has suffered “direct, incidental, and consequential damages,” and that “lost worker efficiency and lost opportunity” continue to accrue.

MercuryGate has yet to respond to the lawsuit and did not return a call requesting comment on the matter.