Amazon-Toys ‘R’ Us lawsuit to proceed

  • Associated Press
  • Friday, September 24, 2004 9:00pm
  • Business

PATERSON, N.J. – A state judge on Friday denied requests for rulings by both Toys “R” Us and Amazon in the toy maker’s exclusivity lawsuit, paving the way for testimony to begin next month, the judge’s law clerk said.

Wayne-based Toys “R” Us filed the suit on May 21, claiming Amazon violated an agreement not to sell competing products on its Web site.

Seattle-based Amazon countersued on June 25, seeking to dissolve their partnership, citing “chronic failure” by Toys “R” Us to keep items in stock and to otherwise adhere to their contract.

Both companies seek monetary damages and a judgment that the other is in violation of the contract.

On Friday, Superior Court Judge Margaret McVeigh denied a motion by Amazon for her to rule on the case, said McVeigh’s law clerk, Elizabeth Trottier.

Trottier said McVeigh also denied a motion by Toys “R” Us to dismiss Amazon’s countersuit, and gave Toys “R” Us 45 days to respond. The judge asked the two companies to seek mediation in that period.

Trottier said the judge ordered that testimony on relevant issues in the case should begin Oct. 25. Trottier declined to say what those issues were.

A lawyer for Amazon, David Zapolsky, said the company would not comment on pending litigation. A spokesman for Toys “R” Us declined comment.

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