Software designer can sue Wayne State for damages in profit-oriented marketing scheme
The Court of Appeals affirmed the trial court's decision that Wayne State University could not claim governmental immunity in a case where a software designer sued, arguing that WSU had essentially breached its contract with him in order to market the subject software for a profit. The University appealed but the lower court's decision was upheld. The higher court found that the subject contract was in the nature of one seeking pecuniary gain and therefore not an activity governed by common law and statutory governmental immunity rules. While there was, in fact, evidence of profit from the undertaking, the court pointed out that the governmental entity need not actually secure a profit in order to lose immunity--if a profit-seeking motive is established.