This case was last updated from U.S. District Courts on 12/31/2021 at 08:25:49 (UTC).

Lenovo PC HK Limited v. Maxim Integrated Products, Inc.

Case Summary

On November 1, 2021, Lenovo PC HK Limited (“Lenovo” or “Plaintiff”), represented by Kevin J. Mangan and Nicholas T. Verna of Womble Bond Dickinson LLP, filed a contract lawsuit against Maxim Integrated Products, Inc. (“Maxim” or “Defendant”), seeking monetary damages with prejudgment interest, expenses and attorneys’ fees for the Defendant’s alleged breaches of its contractual obligations to supply Lenovo with certain defect-free chips and reimburse Lenovo for certain chip defects and failures. This case was filed in the U.S. District Court in the District of Delaware. 

 

In the complaint, the Plaintiff alleged that, “Effective December 4, 2015, the parties executed Amendment No. 1 to the Component Agreement (the “Amendment” or together with the Component Agreement, the “Agreement”). The Amendment modified several provisions of the Component Agreement, including the Epidemic Defect Provision. The Amendment governs all products purchased by Lenovo from October 1, 2014.” “Pursuant to the Agreement, Lenovo purchased, among other products, VT1677 chips (“VT1677 chips”) from Maxim. The VT1677 chips were purchased for incorporation into Lenovo planar boards. Each planar board is composed of eight VT1677 chips. Since 2014, Lenovo has purchased over five million VT1677 chips from Maxim for incorporation into Lenovo planar boards.”

 

The Plaintiff further alleged that, “Maxim violated the Parties’ Agreement by supplying Lenovo with numerous faulty VT1677 chips. The faulty chips caused server system failures at several Lenovo customer sites, significantly damaging Lenovo’s relationships with these entities.”

 

The Plaintiff also alleged that, “Despite admitting that certain VT1677 chips it supplied Lenovo were defective or at-risk, Maxim has refused to reimburse Lenovo the amounts due and owing under the Agreement, wrongly asserting that Lenovo inflated its damages and incorrectly calculated the product failure rate, as those terms are defined in the Agreement. Maxim contends that only actual and confirmed defective products can be used to calculate the Epidemic Defect rate. Maxim’s reading of the Agreement is contrary to the plain language of the contract. The Agreement is clear that any product replaced “due to the same or similar defect” is included in the Epidemic Defect rate.”

 

The Plaintiff lists out three claims for relief. The first claim is for alleged breach of the Component Agreement, as amended. The second claim is for alleged breach of implied warranty of merchantability – Delaware Code § 2-314. The third claim is for alleged breach of the implied warranty of fitness for a particular purpose – Delaware Code § 2-315. 

 

In the prayer for relief, the Plaintiff requested the Court to enter judgment in favor of the Plaintiff on all causes of action, finding against Maxim in an amount to be determined at trial, but approximately $3,000,000.00, and further award the Plaintiff its attorneys’ fees and any and all other fees and expenses incurred in bringing this action. The Plaintiff also requested for prejudgment interest at the maximum legal rates allowed by law and such other and further relief as this Court may deem just and proper.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-01558

  • Filing Date:

    11/01/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Contract - Other Contract

Judge Details

Presiding Judge

Leonard P. Stark

 

Party Details

Plaintiff

Lenovo PC HK Limited

Defendant

Maxim Integrated Products, Inc.

Attorney/Law Firm Details

Plaintiff Attorneys

Kevin J. Mangan

Attorney at Womble Bond Dickinson (US) LLP

1313 North Market Streetsuite 1200

Wilmington, DE 19801

Nicholas T. Verna

Attorney at Womble Bond Dickinson (US) LLP

1313 North Market Streetsuite 1200

Wilmington, DE 19801

 

Court Documents

#1

(#1) COMPLAINT filed against Maxim Integrated Products, Inc. - Magistrate Consent Notice to Pltf. ( Filing fee $ 402, receipt number ADEDC-3734291.) - filed by Lenovo PC HK Limited. (Attachments: #1 Exhibit A, #2 Exhibit B, #3 Civil Cover Sheet)(apk) (Entered: 11/02/2021)

1 #1

Exhibit A

1 #2

Exhibit B

1 #3

Civil Cover Sheet

#2

(#2) Notice, Consent and Referral forms re: U.S. Magistrate Judge jurisdiction. (apk) (Entered: 11/02/2021)

#3

(#3) Summons Issued with Magistrate Consent Notice attached as to Maxim Integrated Products, Inc. on 11/1/2021. (apk) (Entered: 11/02/2021)

#4

(#4) SUMMONS Returned Executed by Lenovo PC HK Limited. Maxim Integrated Products, Inc. served on 11/2/2011, answer due 11/23/2011. (Mangan, Kevin) (Entered: 11/02/2021)

#5

(#5) Disclosure Statement pursuant to Rule 7.1: identifying Corporate Parent Lenovo Group Limited, Corporate Parent Lenovo International Limited for Lenovo PC HK Limited filed by Lenovo PC HK Limited. (Mangan, Kevin) (Entered: 11/02/2021)

 

Docket Entries

  • 11/03/2021
  • DocketCase Assigned to Judge Leonard P. Stark. Please include the initials of the Judge (LPS) after the case number on all documents filed. (nms) (Entered: 11/03/2021)

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  • 11/02/2021
  • View Court Documents
  • Docket(#5) Disclosure Statement pursuant to Rule 7.1: identifying Corporate Parent Lenovo Group Limited, Corporate Parent Lenovo International Limited for Lenovo PC HK Limited filed by Lenovo PC HK Limited. (Mangan, Kevin) (Entered: 11/02/2021)

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  • 11/02/2021
  • View Court Documents
  • Docket(#4) SUMMONS Returned Executed by Lenovo PC HK Limited. Maxim Integrated Products, Inc. served on 11/2/2011, answer due 11/23/2011. (Mangan, Kevin) (Entered: 11/02/2021)

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  • 11/01/2021
  • View Court Documents
  • Docket(#3) Summons Issued with Magistrate Consent Notice attached as to Maxim Integrated Products, Inc. on 11/1/2021. (apk) (Entered: 11/02/2021)

    Read MoreRead Less
  • 11/01/2021
  • View Court Documents
  • Docket(#2) Notice, Consent and Referral forms re: U.S. Magistrate Judge jurisdiction. (apk) (Entered: 11/02/2021)

    Read MoreRead Less
  • 11/01/2021
  • View Court Documents
  • Docket(#1) COMPLAINT filed against Maxim Integrated Products, Inc. - Magistrate Consent Notice to Pltf. ( Filing fee $ 402, receipt number ADEDC-3734291.) - filed by Lenovo PC HK Limited. (Attachments: #1 Exhibit A, #2 Exhibit B, #3 Civil Cover Sheet)(apk) (Entered: 11/02/2021)

    Read MoreRead Less
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