LAUSD admits in the FAC that its payroll system was deeply flawed and caused overpayments and underpayments of wages to thousands of employees over an extended period of time.The Payroll failures allegedly caused tens of thousands of employees to be overpaid, underpaid, or not paid, and allegedly resulted in $25 million in overpayments. (FAC at ¶ 14.)
This was not a short lived situation. The FAC states that the faulty payroll systems began its use and failure on January 1, 2007. There are reports that the system remained highly unstable seven months later. (Ex. 19: Daily News Report dated 8/27/07). The Grand Jury Report notes inadequate employee training and insufficient trial runs as contributing to the disaster, and that even three years later, LAUSD remained at 8 out of 10 level of error exposure. (Exhibit 15). While LAUSD seems to lay full responsibility for causing this catastrophic debacle on Delloite. Review of the payroll documents in this case show numerous errors in basic information pertaining to Ms. Smith's employment, such as salary, classification, and hourly rate, which raises questions as to the accuracy of the underlying data input into the payroll systems. Accounting is never better than the records that provide the source information. Delloitte disputes LAUSD's claims and contends that LAUSD is largely at fault for the operational failures of the payroll software due to failure to inform them of all the capabilities needed, failure to train its employees, corrupted source data, and failure to follow numerous recommendations made by Delloitte. (Exhibit 11). Whatever the distribution of fault may be between LAUSD and its contractor, Delloite, it is LAUSD that is responsible for the failures of its contractors. The one thing that is clear is that the employees were not at fault in causing this situation.
--an excerpt from the late Attorney Chrystal L. Bobbitt Motion for Summary Judgement
The magnitude of error in LAUSD’s payroll systems are so numerous and varied as to reflect more than negligence, but gross incompetence in its systems and the alleged correction of the errors, which is the basis of its claim against Ms. Smith and the other 800 defendants in this case. The fact that there are so many errors that require so much explanation, some of which is incomplete and inaccurate, leaves unresolved doubt as to the validity of LAUSD’s claims of overpayment. The documents are unreliable and therefore inadmissible, leaving plaintiff’s claims of overpayment fatally uncertain and unproveable. LAUSD’s claims are fatally uncertain and therefore judgment must be granted against them.