Foxconn Technology Group’s Singapore unit has sued Creative Technology for failing to pay $500,576 ($659,208) for supplies and services that Foxconn, the world’s biggest contract manufacturer of electronics, said it provided.

Foxconn Singapore said Creative, the maker of the Zen music player and Ziio tablet computer, repeatedly failed to make payment and didn’t give any “substantive” reason for its refusal, according to a Sept. 8 lawsuit filed with the Singapore High Court. A hearing is scheduled for Dec. 3.

Foxconn isn’t entitled to any payments because there are no contracts with either Foxconn or its flagship Hon Hai Precision Industry Co., Creative claimed in court papers.

 

Foxconn refused Creative’s request for a discount on the fees, according to court papers. Foxconn, controlled by Taiwan’s richest man Terry Gou, in September cut its long-term growth target by 50% after raising wages and accelerating factory relocation plans in China.

 

Edmund Ding, spokesman for Taipei-based Hon Hai declined to immediately comment on the lawsuit. Creative spokeswoman Wynne Leong couldn’t immediately be reached for comment.

 

Creative fell 0.5 percent to $4.01 as of 3:12 p.m. in Singapore trading, extending its decline this year to 38%. The company reported a $3.6 million ($4.74 million) loss in the fiscal first quarter ended Sept. 30, widening from a US$1.04 million deficit a year earlier.

 

The case is Foxconn Singapore Pte v Creative Technology Ltd. S614/2010 in the Singapore High Court.