Breach of contract right to jury trial




















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A different three-judge panel in TCL v. Ericsson Fed. The different resolutions of the jury right question cannot be reconciled as dealing with different wrongful conduct — trade secret misappropriation in TAOS and patent infringement in TCL. Instead, they reflect a difference of opinion within the Federal Circuit on whether the same or substantially similar restitution remedy is legal or equitable in nature. These Federal Circuit decisions are material to the continued development of guidelines for measuring monetary relief for trade secret misappropriation.

In addition to actual losses, the trade secret owner is entitled to obtain the amount by which the misappropriator has been unjustly enriched not otherwise accounted for in the award of actual losses. Relief in the form of actual loss is a damages-type remedy having the goal of compensating the trade secret owner for its losses.

The complaint contained four causes of action: patent infringement, trade secret misappropriation under Texas common law, breach of NDA and tortious interference with contract. Instead of concluding its analysis at this point, the Federal Circuit proceeded to take up the issue whether the court or jury should decide on remand whether to award disgorged profits. The district court ultimately conducted a bench trial on all issues. Ericsson appealed on the grounds that it was deprived of its Seventh Amendment right to jury trial on the release payment term.

On appeal, the Federal Circuit Judges Chen opinion , Newman and Hughes focused its analysis of the Seventh Amendment jury right on the question whether the relief provided by the release payment was legal or equitable.

Ericsson argued that it was legal because it is compensation for past patent infringement. TCL , U. All other determinations made by the district court were vacated as predicated on issues common to the improperly decided release payment or reversed as a consequence of the vacated rulings.

As a preliminary observation, the earlier TAOS decision rejecting the right to jury trial was narrow in scope and arguably dicta, providing significant room in subsequent cases for limiting clarifications. Therefore, this portion of the decision is arguably dicta and of limited precedential strength. The court found that when an agreement to forego a jury trial is signed prior to a court filing, it is mute. In other words, written consent is not binding unless a suit has been filed with the court.

The right of a jury trial in California is legally inviolate; when in doubt, it is necessary to resolve the issue in favor of allowing a jury trial. Are you questioning whether or not contractual agreements into which you have entered are binding? Let the employment team at HKM take a look.

At HKM, our experienced attorneys will fight aggressively for clients who find themselves in contractual disputes. Contact us today in Los Angeles for a confidential consultation. Contact us at to see if we can help you.

We are always available. Court of Appeal Issues Opinion When PrincewaterhouseCoopers PwC was retained by Grafton and Allied to audit accounting records, they asked Grafton and Allied to sign a contract agreeing to settle issues that might arise without the use of a jury trial.

A number of serious claims against PwC were made in the suit: Conspiracy to breach fiduciary duty; Professional negligence; Breach of contract; Active concealment; Aiding and abetting. That right can be waived, but only under specific circumstances: When the party does not make an appearance at trial; When the party files written consent to waive a jury trial with the court; When consent is given orally in open court and the court minutes disclose such; When the party does not pay fees associated with the trial in a timely manner; When the party does not state that a jury will be necessary when the cause is initially set for trial; If amounts associated with jury fees as outlined in subdivision e are not paid on the second and succeeding days as required by the court.



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