ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Friday, August 31, 2007

In the News: August 30

A Chinese telecom manufacturer has been hit with a $610 million "fine" for breaching its contract with the Communications Authority of Thailand after it was late delivering a regional network. The amount reportedly is three times the total value of the contract.

A 1991 contract under which the town of Greenwood, Mo., agreed to let trucks use a city street to transport stone from a quarry has erupted in litigation after the town, at the request of local residents, voted to ban trucks from the street. The quarry, which says it’s losing $700,000 a month, argues that the contract was perpetual, while the town claims that it was only to last until the city could no longer keep up the roadway.

Johnson & Johnson won one and lost one, as a federal judge refused to dismiss its breach of contract claims against Boston Scientific, but threw out claims that BS tortiously interfered with a contract J&J claims it had reached with Guidant Corp.  The dispute arises out of BS's successful acquisition of Guidant despite a rival bid by J&J.

ITT has won an $1.8 billion contract from the U.S. Department of Transportation to upgrade the nation’s air traffic control system. It’s the first part of a $20 billion project that will go through the year 2020.

Apple and AT&T are facing another class action lawsuit over the batteries in their iPhone product.  Among the claims are counts for breach of contract for failure to tell buyers in advance that the phones require users to pay extra fees of $100 every time the battery needs to be replaced.

A Washington man who had offered to settle his breach of contract claim against his former employer for $500,000 got good news when he won $6.5 million from a jury -- which the employer apparently has paid.

[Frank Snyder]

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