Orthopedic & Sports Injury Clinic v. Wang Laboratories, Inc.

JERRY E. SMITH, Circuit Judge:

Orthopedic & Sports Injury Clinic (the Clinic) bought a computer from Wang Laboratories, Inc. (Wang), and contracted with Wang to maintain and perform repairs on it. While attempting to fix the computer, Wang’s employees requested and used the Clinic’s last back-up disk and, in the course of their attempted repairs, lost five years of medical and accounting data stored on the disk.

The Clinic, its member physicians, and their medical corporations sued Wang in state court for negligence, recklessness, gross negligence, and damages in excess of $1 million. Wang…