Ellie Mae Responds to DocMagic Lawsuit

In response to the DocMagic lawsuit filed against Ellie Mae, the origination vendor says that it is "surprised and very disappointed that DocMagic has taken these drastic actions." Ellie Mae asserts that DocMagic opted to terminate service and displace its own customers, abandoning a preplanned 60-day orderly transition. Ellie Mae says the agreements between both parties were set to expire on September 1, 2009. Further, Ellie Mae says on April 28, 2009, DocMagic notified Ellie Mae that it was opting to end its Reseller Agreement with Ellie Mae. On May 21, 2009, DocMagic was also informed that Ellie Mae had decided not to renew the outdated terms of its ePASS Agreement with DocMagic. Ellie Mae proposed new terms for their agreement with DocMagic. However, DocMagic did not respond, according to Ellie Mae, and instead decided to stop servicing mutual clients and file the lawsuit. DocMagic did not respond by deadline.