"Siga Technologies Inc. (SIGA) shouldn’t have to hand over 50 percent of the profits from a smallpox medicine to rival PharmAthene Inc. (PIP), lawyers for the drugmaker told an appeals court today."
That reversal is the WIN!
Say HELLO to SIGA's new licensee,PIP(OMG what they have to provide under the formerly "non-binding"LATS?),NWJ?
Expectation Damages do not assume contract enforcement (specific performance) therefore PIP cannot be granted the license under terms of the contract. Also, expectation damages can only be recovered if they can be calculated to a reasonable certainty. After looking at SIGA's prospects for ST-246 back in 2006, there was no reasonable certainty about how profitable (if at all) the drug would be. Parson's stated himself that there were uncertainties at the time of negotiations - so if he awards anything too crazy SIGA can appeal again based on his comments. I think he boxed himself into a corner on this statement not knowing that PIP would be eventually awarded expectation damages.
Expectation damages can only be recovered if they can be calculated to a reasonable certainty. Where damages cannot be calculated to a reasonable certainty, the injured party will only be able to recover nominal damages