Imaging Equipment Services of Pittsburgh has changed law firms in the hope of revitalizing its scanner service litigation against Picker International. IES chose the same law firm that is handling Etek's case against Picker (SCAN 1/30/91), according to Tom Quinn, president of the independent service organization.
The Houston firm of Hornbuckle and Montgomery has agreed to work for IES on a contingency-fee basis, which should allow the ISO to go the full ten rounds with the vendor, he said. Although discovery was closed in the Picker/IES case last July, IES hopes to reopen that phase of the litigation and force Picker to produce evidence it believes the vendor is withholding. The case is being heard in Boston federal district court.
"They (Picker) are not producing documentation we know exists. They made representations that they produced everything there is on imaging equipment service, and we know that is not true," Quinn told SCAN.
Picker would not comment on the ongoing litigation.
Picker initially sued IES in 1987 when the ISO hired a former Picker service executive. That hiring violated a non-compete contract (SCAN 3/16/88), Picker claimed. The vendor sued again over IES's use of Picker service documentation and software.
IES maintains that Picker licensed the ISO to use its diagnostic software. Picker, however, does not recognize the licensing agreement. IES countersued two years ago on antitrust issues, including predatory pricing, sabotage and defamation, Quinn said.
IES alleges that Picker systematically gathers competitive information on ISOs, including multiple Dunn and Bradstreet inquiries, which could harm a company's credit rating.
"Picker has a massive intelligence-gathering operation and they use it effectively," Quinn said.
One issue involved in the Etek service case is also part of the IES litigation. This is an allegation that Picker has manipulated the writing of equipment service bid requests by the military and Veterans Administration so that ISOs cannot compete for the business.
IES brought its VA contract complaints to the office of Sen. H. John Heinz (R-PA), Quinn said. The senator has asked the General Accounting Office to look into the allegations, according to Richard J. Bryers, legislative director for Heinz.
The Inspector General of the VA is also looking into the service contract issue and may be close to issuing a report on the topic, Quinn said. The IG was not available for comment regarding such an investigation.
