Judge Carpenter Presides over Multi-Day Jury Trial in which the Jury Finds in Favor of the Plaintiff
October 31, 2018
Following a trial that took place from September 10,
The jury delivered a unanimous verdict, finding GSK liable for breaching the implied covenant of good faith and fair dealing by statutorily disclaiming the patent at issue. The Court will determine the damages to be awarded to DRIT post-trial.
Analysis: This case involved a large and complex dispute over certain rights contained in intellectual property contracts. Although the implied covenant of good faith and fair dealing is traditionally thought of as a “gap filler,” it also applies where “the party asserting the implied covenant proves that the other party has acted arbitrarily or unreasonably, thereby frustrating the fruits of the bargain that the asserting party reasonably expected.” See Dieckman v. Regency GP LP, 155 A.3d 358, 367 (Del. 2017); Nemec v. Shrader, 991 A.2d 1120, 1134 (Del. 2010) (noting the exercise of the defendant’s express contractual rights under the circumstances of that case “was arbitrary and in breach” of the covenant even though no improper motive existed) (citing Dunlap v. State Farm Fire & Cas. Co., 878 A.2d 434, 444 (Del. 2005)).