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Marin County still holding Deloitte liable for troubled project


Marin County, California, is holding strong in its court case against Deloitte Consulting LLP. The county seeks $30 million and is alleging fraud, misconduct and misrepresentation related to what it says was a botched project to update the county's systems, which resulted in payroll issues and a number of other problems.

Recently, the cost of the lawsuit has reached $2.6 million for Marin County, and costs are expected to triple before the two sides reach a resolution. County Supervisor Steve Kinsey told the Marin Independent Journal the county has the legal documentation it needs to win the case and it will not back down no matter the legal costs.

This lawsuit showcases how important it is for consulting firms to have a good professional liability insurance policy in place. Many lawsuits of this nature can get extremely expensive, and can set a company back years if it does not have an appropriate insurance plan to cover legal fees and other costs.

Marin County also filed a second suit against Deloitte for racketeering, accusing the firm and and a former county official of inappropriately working together to carry out the faulty ERP software implementation.

The racketeering claim was recently dismissed by Judge Susan Illston in U.S. District Court for the Northern District of California, who found deficiencies in Marin County's claims.

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