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ASK Chemicals, LP v. Computer Packages, Inc.

United States Court of Appeals for the Ninth Circuit
593 Fed. Appx. 506 (2014)


Facts

ASK Chemicals, LP (ASK) (plaintiff) owned patents in the United States, Europe, and Japan for a riser that improved the metal-casting process for manufacturers. ASK had success selling these risers in the United States and Europe. In 2008, ASK invested significant time, effort, and money into trying to develop Japanese clients for the patented riser. ASK was also paying Computer Packages, Inc. (CPI) (defendant) to maintain the Japanese patent. If properly maintained, the Japanese patent would last until 2017. However, CPI missed a payment in early 2010 and ASK lost the Japanese patent forever. ASK sued CPI in United States District Court, alleging that CPI had breached the parties’ contract when it failed to make the payment. CPI admitted that it had breached the contract but disputed the damages claim. In particular, the parties disagreed about whether ASK was entitled to recover consequential damages for the future profits it would have made under the Japanese patent.

Rule of Law

Issue

Holding and Reasoning (Boggs, J.)

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