Case Background

Sanmina Corporation filed a lawsuit against Dialight PLC on December 20, 2019. The case is in the U.S. District Court for the Southern District of New York. Sanmina is based in California. Dialight was a public company incorporated in England and Wales. The two companies signed a manufacturing agreement on March 8, 2016. That contract required disputes to be handled in New York under New York law.

Cause

On September 27, 2018, Dialight terminated the agreement without cause. At the time, Dialight owed Sanmina nearly $10 million. This included unpaid invoices and costs for excess and obsolete materials. Sanmina claims Dialight refused to pay for completed goods and materials already purchased. The company alleged that this refusal breached the contract and disrupted business operations.

Injury

Sanmina said it suffered financial losses. It applied $5 million from a reserve account but claims $9.8 million remains unpaid. Sanmina argued that Dialight’s failure to pay forced the company into costly litigation. It also stated the unpaid amounts affected its cash flow and business continuity.

Damages