UK software developer and systems integrator Byline Group has started court proceedings against London Underground for payments owed to it under contracts signed with London Regional Transport (LRT).
LRT, parent of London Transport Property (LTP), contracted Byline to design, install and maintain its property management software, Adminestate, for LTP's 100-plus users in July 1998.
George Perfect, managing director of Byline, confirmed that the proceedings issued involved just over £630,000, which he claims is due to Byline.
Because of financial difficulties which Perfect said were due to the fact that LRT had not paid the amount claimed, his company had to let go of 14 staff in February, leaving a skeleton crew to honour the contractual agreements with current customers.
Perfect stated that his company had been prepared to seek a resolution to this matter via arbitration or mediation, but had been unsuccessful in its attempts. "The legal opinion we have is that [LRT] claimed to have rejected the system without giving grounds other than it is unhappy with it," said Perfect.
Colin Smith, LTP's managing director, confirmed they had been served notice, but would not comment further. "It would be inappropriate for me to comment at this time. It is a matter for the courts to sort out."
Even if the court rules in Byline's favour, Perfect was not optimistic about his company's future. "Last year, I owned a company worth millions of pounds. But nobody's going to bet their property portfolio on a business with the finance problems we have had. The kindest thing we can do is wind it up and start again," he said.
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