Item
 
On September 11, 2007, the New York Supreme Court awarded attorney's fees in the amount of $912,464 to Now Solutions, Inc ("Now Solutions"), the wholly owned subsidiary of Vertical Computer Systems, Inc. (the "Company"), in the action of Ross Systems, Inc. v. Now Solutions, Inc. The award was made pursuant to motions for attorneys' fees filed in August 2007 by Now Solutions and Ross Systems, Inc.

Now Solutions is in the process of entering the judgment in the total amount of $2,191,946, plus statutory (simple) interest at 9% per annum from the date the claim accrued.

 
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
 
(a) Not applicable.

(b) Not applicable.

(c) Exhibits - None
 
 
 
 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

Date: September 14, 2007
Vertical Computer systems, Inc.
   
   
 
By:  s/ David Braun   
 
Name: David Braun
 
Title: Chief Financial Officer