Western Digital Sued in Dispute on Components

Western Digital Corp., a major computer component maker, has been accused of breach of contract in a lawsuit by one of its suppliers, Compeq Manufacturing Ltd. of Salt Lake City, in a dispute over the quality of Compeq’s goods.

The Utah firm, which makes layered circuit boards, alleges in its suit that Irvine-based Western Digital has refused to pay for 5,000 custom-made circuit boards and seeks $277,109 in payment. The suit was filed Aug. 29 in Orange County Superior Court in Santa Ana.

Robert J. Blair, spokesman for Western Digital, said his company refused to pay for the Compeq circuit boards because they did not meet Western Digital’s specifications. He said the company plans to oppose the suit in court and declined further comment.

Compeq, owned by a Taiwanese company, alleges in the suit that Western Digital ordered 5,000 circuit boards in January for $66.21 per unit and that Compeq changed the design several times at Western Digital’s request.

In addition, the suit alleges, Western Digital officials inspected the boards before they were delivered in January and February.

But on Feb. 19, the suit says, Western Digital officials declared the boards defective because holes for mounting internal computer speakers were improperly punched. Compeq offered to fix the boards at no cost, but Western Digital refused to accept that offer, said Richard Foster, an attorney for Compeq.

“It was clearly our mistake,” Foster said. “But all we had to do was solder it and punch it through again, which would have taken one or two days.”

Western Digital initially paid Compeq for the work, but after ordering other, unrelated parts decided in July to apply the $277,109 circuit board payment toward the other purchases from Compeq, the suit alleges.

Compeq said it could not market the boards elsewhere because they would only fit Western Digital equipment.