Power Computing Sued for Breach of Contract

Macintosh clone maker Power Computing has been sued by one of its suppliers for breach of contract. TCI Manufacturing, a Canadian-owned company based in Taiwan, alleges that Power Computing unfairly canceled a $3-million order for personal computer elements that has no value on the open market now that Power has accepted $100 million from Cupertino-based Apple Computer to exit the Macintosh clone business. TCI has defaulted on payments to suppliers and shut down operations. “Everything we worked for for 10 years is gone,” said TCI President Patrick Jabal, who is seeking $42.75 million in damages. West Short, an attorney for Power Computing in Red Rock, Texas, called the claims “ridiculous” and “spurious.” He said Power Computing’s purchase orders allowed the company to cancel its orders with 30 days’ notice without penalty. Short added that TCI owes Power about $1 million for equipment that was never delivered or is defective. The suit was filed Tuesday in a state court in Austin.