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Motorola Fails to Block Irish WiMAX Contract Dispute Lawsuit
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Motorola has failed in a bid to secure a court order dismissing a lawsuit it is fighting in Ireland over a WiMAX network deployment contract dispute.
Motorola signed the contract with Imagine in October 2009, but was sued by the company in March 2011 over alleged breaches of the contract.
In a ruling, Mr Justice Brian McGovern dismissed Motorola's bid to have the case against it struck out after Motorola complained that Imagine had not complied with previous court orders and that its lawsuit was an "abuse of process".
Imagine is seeking EUR90 million (US$124 million) from Motorola after claiming that failures by Motorola have cost it EUR 17 million to date and will lead to cumulative losses of EUR 90 million by the end of 2013.
Imagine - through its parent companies - said that their business plans envisaged 234 base stations would be installed by the end of 2010 but just 125 stations had been installed so far.
According to the original statement from Motorola when the contract was announced in October 2009, it was financing a portion of purchase price as a vendor financing agreement.
The WiMAX division has since been sold to Nokia Siemens Networks, who in turn have since sold it to NewNet Communication Technologies.
Tags: [motorola] [wimax] [imagine communication] [Ireland]
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