Defense Ministry countersues Toshiba

Mon, 11/26/2012 - 10:18am
The Associated Press

TOKYO, Nov. 26 (Kyodo) — The Japanese Defense Ministry is countersuing Toshiba Corp. for breach of contract in relation to the remodeling of F-15 fighters into reconnaissance planes, seeking 1.2 billion yen in penalties for failure to complete work on schedule, Defense Ministry sources said Monday.

The lawsuit was filed with the Tokyo District Court in October after Toshiba began suing the Defense Ministry in July 2011, seeking 9.3 billion yen of payment for its modification work following the ministry's contract cancellation.

According to the ministry, it made the contracts between fiscal 2007 and 2009, with Toshiba installing casing underneath F-15 fighters to house cameras for taking optical and infrared pictures and sending collected data to the ground. But the ministry canceled the contracts in February 2011, citing Toshiba's failure to complete the work on schedule.

Toshiba said it was requested to provide greater performance than initially agreed under the contracts for the F-15 fighters' reconnaissance system. The major electronics company claims that the cancellation of the contracts and the penalty charges are unjust.




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