US lawsuit against NetSuite over 'manifestly unusable' software set to be dismissed

It's far more preferable to avoid going to court altogether when you've got a problem with your vendor, one analyst says

NetSuite has avoided what could have been an ugly, image-damaging court battle, having reached an agreement to dismiss a lawsuit brought by its customer SkinMedix over an allegedly unusable software system.

SkinMedix filed suit against NetSuite in May, saying the promises of an "overly aggressive" salesman at the vendor led it to purchase software that ended up being "manifestly unusable."

However, in a court filing last week, the parties mutually agreed on a stipulation to dismiss the suit with prejudice, meaning the charges can't be brought again.

NetSuite hadn't issued an answer to SkinMedix's claims as of the Aug. 1 filing in U.S. District Court for the Northern District of California, leaving open the question of what type of defense it might have mounted.

Neither company responded to requests for comment this week. But the agreement to dismiss the case could mean NetSuite reached a settlement with SkinMedix rather than duke it out in court, or that SkinMedix decided the cost and effort of pursuing a lawsuit wasn't worth the trouble.

Still pending is a suit brought last month against NetSuite by another customer, textile products manufacturer Kentwool. In that case, Kentwool too alleges that it bought NetSuite software based on pledges from company officials that their software could meet its specialized needs.

What exactly went down behind the scenes with SkinMedix and NetSuite doesn't really matter in the bigger picture, said analyst Frank Scavo, managing partner of IT consulting firm Strativa.

"By all means, customers should try to solve these problems short of filing a lawsuit," said Scavo, who has advised clients that found themselves at odds with their vendors.

Many disputes between customers and vendors never find their way to court, Scavo noted. However, "in some cases the only way you can get a vendor's attention is to bring in a lawyer."

"That doesn't mean it's always the vendor's fault," Scavo added. "Sometimes the customer hasn't held up their end of the deal, but the relationship has gotten so sour they don't want to move forward."

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags netsuiteSkinMedixapplicationsenterprise resource planningCivil lawsuitslegalsoftware

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?