Clerk Scott Ellis said in response to the lawsuit, “The Clerk’s Office did not approach Hewlett Packard for the loan. BlueGem worked with Hewlett Packard to put the loan package together to get the Clerk’s Office to sign off. Hewlett Packard provided the legal opinion to the allegedly independent attorney assessing the loan language of the note. Hewlett Packard also arranged for a $200,000 performance bond for the BlueGem scanning contract.“The Clerk has absolutely no equipment or software purchased with this note. Even though BlueGem was paid nearly $7 million up front for the scanning contract, which halted months ago with the current Clerk/BlueGem litigation, they are having problems meeting their small payroll at their Melbourne office.”
Former Clerk Mitch Needelman originally hired BlueGem, Inc. in the summer of 2012 with an $8.5 million contract to scan court documents. Needelman changed the deal in October 2012 by borrowing $6.1 million from Hewlett-Packard and paying BlueWare in full.The suit was filed in the United States District Court for the Middle District of Florida.