A USD1.4 million IBM server was damaged after falling off a forklift during shipping.

The customer is now suing the computer manufacturer, claiming the computer maker failed to properly package the server.

According to Information Week magazine, US federal contractor TR Systems' workers were moving the server from a freight truck into its Virginia warehouse when the incident occurred.

The rear wheels of the forklift hit the raised surface at the warehouse entrance, causing the forklift and its load to rock, TR Systems stated in its court papers filed in the US District Court in Alexandria, Virginia, last month.

"As a result of the rocking motion, the base of the pallet and the crate broke and the crate fell onto the curb, damaging the server packed inside."

TR Systems claimed in its court papers the damaged server was a result of "poor workmanship" and/or "defective packaging design and methods" by IBM.

IBM released a statement saying it would defend itself "vigorously" in the case and declined further comment.

The contractor purchased a new server from IBM following the October 2006 incident, for its customer, the US Patent and Trademark Office. It is now seeking damages in excess of USD1.4 million.