AAPL » Topics » MacAccessory Center, Inc. v. Apple Computer Inc.

This excerpt taken from the AAPL 10-Q filed May 4, 2005.
 MacAccessory Center, Inc. v. Apple Computer Inc. (all in Santa Clara County Superior Court)

Six resellers have filed similar lawsuits against the Company for various causes of action including breach of contract, fraud, negligent and intentional interference with economic relationship, negligent misrepresentation, trade libel, unfair competition and false advertising. Plaintiffs request unspecified damages and other relief. The Company answered the Computer International complaint on November 12, 2003, denying all allegations and asserting numerous affirmative defenses.  Three of the other plaintiffs filed amended complaints on February 7, 2005 and on March 16, 2005, the Company filed answers denying all allegations and asserting numerous affirmative defenses.  The Company filed an answer in the Macadam case on December 3, 2004 denying all allegations and asserting numerous defenses.   All Plaintiffs except Computer International hired new counsel in December 2004.  All cases except Macadam are in discovery.  A sixth Plaintiff, MacAccessory Center filed a complaint on February 23, 2005.  The Company filed a response on April 20, 2005.

 

On October 1, 2003, one of the reseller Plaintiffs, Macadam, was deauthorized as an Apple reseller. Macadam filed a motion for a temporary order to reinstate it as a reseller, which the Court denied. The Court denied Macadam’s

 

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motion for a preliminary injunction on December 19, 2003.   On December 6, 2004 Macadam filed for Chapter 11 Bankruptcy in the Northern District of California, which placed a stay on the litigation as to Macadam only.  The Company filed a claim in the bankruptcy proceedings on February 16, 2005 to which Macadam has objected.  The Company took Macadam’s debtor examination in April 2005.  Macadam filed a motion to employ the same lawyers working for four of the other reseller plaintiffs as special litigation counsel to Macadam but subsequently withdrew the motion following the Company’s opposition.  The Company filed a motion to convert the bankruptcy to Chapter 7 (liquidation) on April 29, 2005.

 

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