Compaq files breach of contract law suit

Compaq has filed a $17m suit against a Canadian consulting firm for breach of contract.

Compaq has filed a $17m suit against a Canadian consulting firm for breach of contract.

Compaq is claiming consultancy company the Baxtor Group and Peter Mellon falsely obtained reduced price products on $60m worth of supplies by claiming it had won a contract with the US Department of Transport's Federal Aviation Administration. The consultancy allegedly told Compaq it had won a deal to supply a large volume of Compaq PCs to US airports. Compaq claims the contract with the US FAA never existed and is seeking to recover costs.