Digitech Computer, Inc. v. Trans-Case, Inc.

Dist. Ct. did not err in finding that defendant breached software licensing contract calling for plaintiff to provide software and training services to defendant where record showed that defendant had failed to make required monthly payments, even though software had begun to malfunction. Defendant had failed to provide plaintiff with 90-days' written notice of material malfunction in software as required by contract prior to withholding of payments, and defendant could not otherwise rely on 90-day, no-questions-asked guarantee that was contained in prior proposal to void contract where said guarantee was not contained in actual, signed contract. However, remand was required to re-calculate damages where Dist. Ct. awarded plaintiff damages covering lifetime of three-year contract and should have cut off damage award on date that defendant had unilaterally stopped operation of software due to plaintiff's withholding of payments.