Phone: 619-238-4900

Hertz files breach of contract lawsuit against Accenture

One of the first things people do when they fly from San Diego to another U.S. city is to get a rental car. Because Hertz is one of the very largest car rental brands in the nation, many travelers look for its familiar yellow and black logo.

The company recently announced that it has filed a lawsuit against Accenture, its former marketing partner over what it claims is a breach of contract. Hertz wants unspecified millions of dollars in damages, as well as attorneys’ fees and related costs.

Hertz says it hired Accenture to redesign its website and mobile apps and that its former partner failed to deliver. Hertz said in its lawsuit that it paid Accenture’s digital division more than $32 million over a two-year period that ended in 2018. It says it contracted with Accenture to “redefine the customer experience on Hertz’s digital platforms” with an updated, redesigned website and a suite of mobile applications.

An Accenture spokesperson waved off the allegations: “We believe the allegations in this lawsuit are without merit, and we intend to vigorously defend our position.”

Hertz said it looks forward to resolving its claims in court. “The lawsuit outlines that Accenture failed to deliver a viable product, even after multiple delays and additional expenses were incurred. Hertz brings this action to recover the fees it paid to Accenture and the resulting damages.”

Hertz said that after two years and tens of millions of dollars, its former partner “never delivered a functional website or mobile app,” even after twice delaying the releases of the products. It says the original launch was scheduled for December of 2017, which was then delayed a month. The launch was delayed to April 2018, Hertz said, and then delayed again – at which time Hertz “no longer had any confidence that Accenture was capable of completing the project.”

If you and your firm believe a partner or other company has not lived up to the terms of a contract, contact a San Diego law firm experienced in business litigation.