Big Blue slapped with multi-million PC writ

Granville alleges IBM line was of 'unmerchantable quality and unfit for their purpose'.

IBM is facing legal action over damages for breach of contract afterfor their purpose'. allegedly supplying more than 27,000 defective computers to Granville Technology Group.

According to a high court writ issued on 13 November by Granville, the holding company of Time Computer Systems, it is suing for damages after buying 27,368 PCs under contracts made on 27 May 1994 and 15 August 1994.

The writ claimed the IBM-manufactured computers were of 'unmerchantable quality and were unfit for their purpose.'

In a statement to PC Dealer, a representative for Time confirmed that Granville had commenced legal action against IBM (UK). 'The claim is at an early stage and has not yet been formally served on IBM. This is because we are in dialogue with IBM and we would, accordingly, prefer not to comment further now,' he said, adding that Granville would make a formal statement if the action proceeded further.

It was unclear which range of IBM PCs the writ referred to. One industry observer commented: 'It is possible that IBM made some PCs for Time to sell under Time's brand name because if there was a problem with IBM-branded kit, IBM would have had to deal with the issue under warranty.'

Using 1994 prices, observers have estimated that the PC deals were worth about #40 million.

Duncan Wilkes, chief operating officer of Action Computer Supplies, said: 'This is fascinating because it's something that happened four years ago and involves a lot of money.'

An IBM representative said he was aware of the situation, but refused to comment on a matter that may be subject to litigation.