City vendor sues city's management services

Michelle Massey May 5, 2010, 8:00am

A vendor for New Orlean's disadvantaged business enterprise accuses the city's personnel management service of breach of contract and misrepresentation in a recently filed lawsuit.

Worldwide Detective Agency filed suit against Cannon Cochran Management Services (CCMSI) formerly Management Services, USA on May 3 in the Orleans Parish District Court.

According to the complaint, CCMSI has an exclusive personnel services agreement with the city to provide claims processing and management, surveillance, claims adjusting and worker's compensation claims.

Despite the contractual relationship, CCMSI allegedly discontinued Worldwide Detective Agency's services on March 9.

After the contract was canceled, Worldwide claims it learned that CCMSI's contract was substantially greater than represented and Worldwide did not receive a promised 26 percent of the annual contract revenues.

Worldwide claims CCMSI failed to provide the total value of the contract and is asking the court to award the difference between the amount received and the 26 percent of the value of the contract. It is also asking for an award of damages for income it should have received for the renewed contract years, plus interest, expert fees and attorney fees.

New Orleans attorneys Robert G. Harvey, Sr. and Justin A. Zitler are representing Worldwide.

Judge Sidney H. Cates is assigned to the case.

Case No. 10-4489

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