Hughes Aircraft Corp. has sued ITT Corp., its partner in a canceled defense contract, for $8.1 million plus additional damages in the wake of the project's cancellation last year.
The suit, filed in Orange County Superior Court last week, contends that ITT owes Hughes the money under a contractual agreement to share the cost of developing the Navy's now-defunct Joint Tactical Information Distribution System. Hughes alleges that ITT's failure to settle the account constitutes a breach of the contract between the two companies.
A Hughes official also said that filing the suit was a "procedural" move that could help resolve stalled negotiations with ITT and avoid an actual court hearing.
The project, developed by a joint venture operated by Hughes' ground systems group in Fullerton and ITT's defense space group in New Jersey, was canceled last October in a military cost-cutting move. The Navy spent $100 million on the system before canceling it.