Apple Computer was sued for $1 billion.

The breach of contract suit, filed by Steven Kitchen and Woodside Design Associates in Redwood City, Calif., accuses Apple of reneging on a 1985 oral deal to acquire Woodside, developer of a flat-panel video screen for computers. The suit claims that Woodside’s agreement with founder and then-Chairman Steven P. Jobs was broken once Jobs was ousted from power in a bitter dispute with John A. Sculley, president and now chairman.