ESSSuper takes on tech outsourcer Iress in contract dispute

Emergency Services & State Super (ESSSuper) has filed a civil suit against financial services software maker and service provider Iress, alleging contractual breaches, “loss and damage”.

The superannuation fund for Victorian government and emergency services agencies outsourced its back-office technology and administration to Iress in late 2019.

The fund said the change would result in “better online systems” for employers and members.

But its board of ESSSuper has now filed Federal Court proceedings against IRESS and its subsidiary Financial Synergy Holdings, “citing material breaches of contract and pre-contractual misrepresentations which have ultimately impacted its members,” it said in a statement.

ESSSuper alleges “numerous incidents and breaches by Iress … since entering the contract”, which it sought rectification of “through direct engagement and through using the dispute mechanism clauses in the contract.”

It alleges these “significantly inconvenienced” members and caused “loss and damage” as the fund spent “time and money” and engaged third parties in pursuit of fixes.

“As a member-focused fund, ESSSuper does not enter into litigation lightly,” the board said in a statement.

“However, given the ongoing lack of resolution in response to our clearly articulated concerns, and the significant inconvenience to members and the fund, the board has no alternative but to issue these proceedings.”

Iress denied the allegations in a financial filing [pdf] to the ASX.

“Iress denies the claims made against it and will file a defence in accordance with the court’s timetable,” the vendor said.

“Iress continues to provide the contracted services to ESSSuper.”