Rockwell Collins has filed a lawsuit against Hughes Electronics for breach of contract over Rockwell's purchase of the former Hughes-Avicom International. The manufacturer is seeking damages of at least $28 million plus interest.
Rockwell bought Hughes' in-flight entertainment division in late 1997 to form Rockwell Collins Passenger Systems.
The lawsuit, filed in the Los Angeles Superior Court last month, alleges that Hughes breached the warranties and representations of its IFE, cabin management and communications business with regard to a standard interface contract with Boeing.
The $13 million contract required Hughes-Avicom to design and build a new communications interface for the Boeing 747 and 767 passenger cabins. The interface was to allow audio and video equipment from different vendors to be installed.
Hughes-Avicom was contracted to design and test the standard interface hardware and software to Boeing specifications, and deliver a completed interface to Boeing by April 1998 for installation on a Japan Air Lines (JAL) 747.
Rockwell alleges Hughes-Avicom failed to comply with the contract by "grossly" understaffing the programme; failing to comply with the documentation, testing and quality assurance requirements; continually missing scheduled deadlines for completing the work; and failing to properly manage and supervise the programme.
When it purchased Hughes-Avicom, Rockwell only had four months to deliver a functional product to Boeing. Rockwell had to take steps to solve the "staggering scope of the problems" facing the programme, it says. The standard interface programme was "far behind schedule" and Boeing was facing potential liquidated damages of $1 million a day to JAL. As a result, Rockwell only managed to deliver a partly-functional product by the delivery date.
Source: Flight International
