The Register‘s headline perfectly encapsulates the dispute between Oracle/American Express and a high-end strip club:
A San Francisco strip club is suing Oracle after the tech goliath refused to pay a $33,540 bill allegedly racked up on the company credit card.
Larkin Street’s New Century Theater has filed a lawsuit claiming a man — named in the legal paperwork as Jose Manuel Gomez Sanchez — slid into the sexy flesh-pit last year and partied through the night.
It’s alleged he used an Oracle-issued American Express card between 1am and 5am to pay for $16,490 of undisclosed services on 2 October — right in the middle of Oracle’s OpenWorld 2012 conference in the city — and then returned two days later to splurge $17,050.
According to the San Fran Chronicle, Oracle was not willing to settle the subsequent bill. The database giant, easing itself into the software-as-a-service market, declined to comment on the lawsuit, which was submitted earlier this month to the Superior Court of California in San Francisco. The next hearing will take place in February. Sanchez is named as a defendant along with Oracle.
I’m not a lawyer, but it strikes me as a bad idea for Oracle to dispute the charges on the Amex card unless there are strong indications of “creative” billing on the part of the strip club. Just because they disapprove of how their employee racked up the charges doesn’t mean they can stiff the vendor.