StorageNetworks Sues Metromedia - EnterpriseStorageForum.com

StorageNetworks Sues Metromedia

In legal matters peripheral to anything going on with Microsoft Corp., StorageNetworks Inc. this week fired off a lawsuit against optical IP infrastructure provider Metromedia Fiber Network Services Inc. for failing to provide enough fiber optic capacity per an agreement.

StorageNetworks, a Waltham, Mass. provider of, yes, data storage management services and software, cited breach of contract and "unfair and deceptive trade practices" in a suit filed Wednesday in Middlesex Superior Court in Massachusetts.

StorageNetworks seeks a declaratory judgment, partial rescission of its agreement with Metromedia and damages, but it did say it would continue to honor existing commitments to New York's Metromedia as far as their fiber optic leasing deal is concerned.

In what is taking shape as a he-said, she-said scenario, Metromedia responded with puzzlement to StorageNetworks' litigation announcement by saying it is "difficult to understand why Storage Networks does not want to lease additional fiber optic capacity under the terms of the contract but, on the other hand, is willing to honor its existing lease commitments."

Oh, and Metromedia said it has fully complied with all facets of its contract with Storage Networks, and will accordingly defend itself against the "meritless lawsuit."

The companies are mum on any other specifics about the case because litigation is pending.

"I hate to be circumspect but all I can tell you is what is on the press release," said StorageNetworks' spokesperson Jackie Price.

Metromedia Fiber Network, which almost two weeks ago said that Citigroup Inc. had granted it a one-month extension of a commitment letter for a $350 million credit line, did not return calls seeking comment as of press time.


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