Sunday, May 5, 2013

BlueGem Counter-Sues Clerk's Office: Claims Ellis' "Ignorance"

TITUSVILLE, Florida - BlueGem, LLC has filed a counterclaim for breach of contract against the Brevard County Clerk of Courts and has answered all previous charges made by Clerk Scott Ellis in an earlier complaint regarding a disputed $6 million scanning contract.

BlueGem has demanded a jury trial to hear “all issues and matters” related to the claims.
Ellis had filed his complaint in March alleging illegal payments and breach of contract relating to the agreement last year between BlueGem and former Clerk Mitch Needelman to digitize court documents.  Ellis has repeatedly called the contract a “sham.”

In a March 28 letter to BlueGem, attorneys for Ellis informed BlueGem that there was no expectation of any “further performance by BlueGem under the scanning contract” until either the legal action is resolved or the Clerk’s office notifies BlueGem to resume scanning.  The letter called this action “abatement” and said that the contract was “not” terminated.
BlueGem said in its answer, filed with the court on April 25, that it contracted with the real party in interest, the Brevard County Clerk of Court's office, and that it "did not contract with a specific individual as Scott Ellis desires the Court and the public to believe." BlueGem maintains that "Ellis is merely the head of the legal entity" and is estopped from proclaiming the scanning contract entered into by his predecessor as invalid, unenforceable, illegal, or void.

Ellis had claimed that an initial payment to BlueGem of $510,000 had been made prior to the execution of the contract.  In their answer, BlueGem says those funds were “a deposit for negotiation relating to the scanning contract and such amounts were refundable if terms could not be agreed upon.”
In their counterclaim, BlueGem says that it would have fulfilled its obligations to date, but that Ellis has failed to provide “a sufficient volume of documents.”  They also claim “Ellis’ ignorance of the required design and testing procedures prior to December 2012, which were needed prior to the implementation of full-scale scanning.”

BlueGem has requested costs, expenses, attorney’s fees, and “amounts due and payable under the Scanning Contract and Amendment.”
In their response to Ellis’ initial claims, BlueGem answered each paragraph, denying many due to lack of “knowledge.” Many of these claims were specific to actions taken by Needleman and his office.

However, BlueGem does deny specific claims of its culpability in other matters: 
1.     That BlueGem’s staff adapted a 113-page ITN from Palm Beach into a “vague 11-page document to mirror the contract BlueGem submitted”

2.     That BlueGem assisted a Clerk’s employee in answering questions from other competing vendors



  1. What a waste of time and money.....Let's close some schools to pay for this.... Basically it's the tax payers that get suckered again...enjoy unemployment, school closings etc while some live large

    1. Living large? You mean like school employees who wear suits and do not teach....

  2. Here we go again. We have Rose and her merry men who never should have won the contract in the first place are now claiming they did nothing wrong and not only want this bogus contract reinstated but also money for damages. Rose is hanging out in the UK starting a whole new company with her buddy Jenny and the company does something they are both actually have a lot of experience - the market is pseudonymisation. For those of you who do not know this is the process of assigning fake names for people. In the UK they are required to do this for their healthcare patients. Who better than them to know how to put false information out there.

  3. Take 'em down to the mat, Mr. Ellis. And when we win, let's turn the dogs loose on Mitch. Let that worthless turd pay the tab for all that he messed up on during his tenure.

  4. Its fairly common to answer an allegation with "no knowledge". That just means that the lawyers are in business again.

  5. This is exactly a brilliant defense. They never answered any questions or replied to any requests for the past 6 months from news papers who have requested explanations or interviews. They deny they did anything wrong. And they just took the money and hid it overseas. I just have two questions for Mitch or anyone at Brevard Clerk of the Court - could you tell me when a contract has been paid in full before the work was actually accomplished as it was in this scenario and if they were the perfect vendor for the job how come there has been so many questions on their ability to do the job?

  6. So the lawyer for Rosie claims that Scott can't sue because the contract is with BCCC and not Ellis. OK then maybe the citizens of BC should sue Rosie and Mitch for the conspiracy they planned together to make up a contract need, set up the review and approval process and then rush the payment to Rosie before Mitch left office. I am still trying to figure out why all the money had to be paid up front when the contract was signed rather than when the work was performed. If we are supposed to be running the government like we would a business would you pay the guy who pulls up in an ice cream truck to reroof your house before they started the job. First they evidently have no experience and second it makes no sense. Why was Rosie so emphatic on getting her money up front - MAKES NO SENSE.

  7. Let me translate this for you it could be confusing - from article above - “a deposit for negotiation relating to the scanning contract and such amounts were refundable if terms could not be agreed upon.”

    What this means is Rose could not make payroll or pay her bills and the only way that could happen was a payment from the county to keep her doors open.

    What does that mean a deposit for negotiation. So when I go to see my next customer and I am bidding on a job I am going to ask for an 8% deposit from them just as good faith. I thought Bluewhatever the name is today was negotiating with a government entity. BCCC pays good faith money with all their vendors.

  8. Let's see this will be at least the second jury trial for Rose in the last 6 months. Does anyone see a pattern here? Will she be able to do it from the UK or will she actually have to come to Florida? Maybe she can fax her testimony from a fancy hotel just like she did the EDC document she just happen to have on her when she was hiding there in January.

  9. Replies
    1. We could only help that is the end result for a few individuals who walked away with a lot of money for doing nothing.

  10. Regardless of the law suit going on, how are we making out with 190 new hires at $69,000 per year. Were these goals all tied to a contract that is under question right now? Because that leaves me with two questions - if they have not hired the 190 employees because this contract is being held up, this promise of the jobs were tied to the incentives for them to move here and that does not make sense unless they knew they were going to win the contract before they moved here. The other question is if the 190 jobs are not tied to the contract in question, were are we with those 190 employees and what are the penalties for not meeting them.

    Makes you wonder what came first the cart or the horse???

  11. I love the title of this article - BlueGem sues claims Ellis ignorance. Really??? Really is that your defense. I guess questioning an illegal contract process followed by an award to a ridiculous vendor for something they never did before at a price that is four times higher than the competition is ignorance.


  12. So Rose wants a trial by jury. Is she actually aware that she is going to have to take the stand and tell the truth the whole truth and nothing but the truth. This is not your little reindeer games you had with Nick in Michigan. Scott is a lot smarter than you and he has a lot more evidence then he said she said like Nick had. You may want to think about just giving back the money and say my bad.

    You lose this time it is going to set things up to be really nasty when FDLE press charges and the consequences with them mean jail time.

  13. Speaking of the FDLE, they appear to be spending a lot of time investigating the Osceola Clerk for trading campaign $$ for a job...

    Meanwhile we have a $9 MILLION scam that has been going on here for over a year now...

  14. The FDLE is still actively investigating this contract as well.

  15. Any update information, Brevard Times?