The recent law suit filed by Worcester, Massachusetts-based MLS-PIN against its MLS information system provider Moore Data Management Systems raises interesting questions about performance, integrity and expectation. How long should an MLS be patient over system deficiencies? What can an MLS system provider to make things right? And, is a suit really necessary?

MLS-PIN alleges that part of the software suite for its new Compass system is eight months late. According to the contract, Moore was to deliver beta-test copies of its MLS Windows software by June 24, 1998, and a fully functional MLS Windows by July 31, 1998. Beta testing didn't begin until August 4, arriving without CMA and mapping modules.

The suit alleges "substantial and continuing deficiencies in the program's functionality and performance." Dave Wluka, president of the Greater Boston Board of REALTORS and one of the beta testers, said that problems included system crashes during downloads, photographs appearing upside down, and streets appearing in the wrong cities, among other problems.

Copies of the software weren't shipped until October, 1998, where they have been sitting at MLS headquarters undistributed. The reason? The suit alleges the product wasn't ready and was shipped incomplete without the mapping features.

One source says that the MLS Windows software is critical to members who need the functionality of downloading listings and photographs to work off-line. The mapping module would search and plot listings on street maps integrated with residential, commercial, and tax databases, and include overlays of schools and other points of interest.

MLS Windows is a more sophisticated client/server interface for the MLS's Compass system than the users currently have with PC Access, a no-frills software with no downloading capabilities that some consider a "step backward" from previous systems. MLS Windows would allow for more professional-appearing reports and the ability for users to use the database off-line on their laptops for out-of-office presentations.

According to the contract, failure to provide the software on-time would result in a $1,500-per-day credit or penalty against Moore until delivery beginning September 1, 1998. To date, Moore has incurred over $261,000 in penalties. In other words, MLS-PIN isn't paying its bill.

Moore contests that MLS-PIN is in breach of contract by keeping the funds. Although it has agreed to deliver MLS Windows with the mapping module soon in time for refresher seminars to be held May 10-11, 1999, Moore continues to disagree about the funds.

Kathy Condon, MLS-PIN's CEO wants the software to rollout - bug-free. Moore's VP of information systems Howard Latham says the product is ready. So what's the problem?

Wluka believes the data integrity problems have been fixed. But, he says, the beta product he is using still crashes on downloads. Otherwise, he is pleased with the product.

According to Moore spokespersons, they are unaware of any problems on the system. They say that MLS Windows has an auto upgrade feature which enables the latest updates and patches to be streamlined right into the software. If the integrity problems have been solved, then the bone of contention is most likely no longer the integrity of the software, but the penalty funds accrued by Moore. One source speculates that punitive actions on both sides - the MLS-PIN's withholding of funds, and Moore's delay in adding the mapping module has kept the dispute from resolving thus far.

Another problem is a disagreement over the price of the copies. The first 3,000 copies of MLS Windows were to be priced at $24.95 per agent or $49.95 per office network version. The prices were to increase after those had been distributed. MLS-PIN alleges that Moore attempted to change the agreement by counting office copies as two agent copies and imposing add-on charges for the delivery of the mapping module. Moore has since withdrawn its demand for a price change, but still wants the penalty money restored. Moore has also shipped the mapping modules. Receipt was confirmed by Condon.

Should Moore pay the penalties as well as double or treble damages as sought by the MLS-PIN? Is the MLS-PIN in breach of contract as alleged by Moore?

The two litigants, both under gag order, are actively working toward a solution that seems light-years apart.

Howard Latham, Moore's vice president of MLS information services said, "We are actively installing MLS Windows around the country, and we are working proactively to deliver MLS Windows to the MLS-PIN membership."

"I can't comment on the action, but I feel confident that this will be resolved. We are continuing our relationship with MLS-PIN, and we are planning to roll out MLS Xplorer (Moore's Internet interface product) to the membership soon," says Latham.

Condon agrees that both sides are looking for a quick settlement. "I don't want to have an adversarial relationship with any vendor," she says.

Was a court action necessary? Condon acknowledges that her reason for taking Moore to court was to "simply get some action." One source cited a "pattern of behavior" by Moore in which other MLSs experienced similar problems.

A Moore source admits that "we should have come out of beta faster, but our intention is to get the product out to the MLS."

Latham points to the successful conversion of the San Francisco MLS, who purchased a system similar to MLS-PIN's which has been up and running with MLS Windows and the mapping function since December.

"Moore was wonderful for the conversion," agrees Condon, " but, they tried to roll out a product to us that clearly was not ready for use."

So far, there are only 900 orders for the MLS Windows product, but Condon believes that the low number is not so much an indication of member disinterest as other factors. "Our members know we aren't rolling out a product to them until it's right. Another reason may be that people might be waiting for Xplorer." Xplorer, confirms a source, has upload as well as download capabilities as well as enhanced report functions of similar quality to those promised by MLS Windows.

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