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Jury finds university liable in military contract lawsuit

September 18, 2015

DOVER, Del. (AP) — A federal jury has ordered the University of Delaware to pay $390,000 in a lawsuit involving a Department of Defense contract.

The jury ruled Friday that the university and professor Steven Stanhope were liable for unjust enrichment in a 2013 lawsuit filed by Illinois-based Esprit Health LLC. The jury found in favor of the university and Stanhope on Esprit’s claims of fraud and negligent misrepresentation.

According to court records, the university sought out Esprit to provide an information technology infrastructure for a military project aimed at improving rehabilitation of combat-related injuries.

But after enlisting Esprit’s help in winning the $19.5 million contract, the university discovered a free alternative to Esprit’s software infrastructure and decided to use that instead.

A university spokesman said the school has no comment on the verdict.

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