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Calif. Appeals Court Strikes Down $577M Judgment In Breach Of Contract, Fraud Suit Against Boeing, Boeing Satellite Systems International

On April 13, 2012, The Boeing Company and a subsidiary, Boeing Satellite Systems International, Inc., successfully wiped out a $577,000,000 judgment that ICO Global Communications, Ltd. had obtained in 2008. 2012 Jury Verdicts LEXIS 4281. In an unpublished unanimous decision by the California Court of Appeals, Second District, the court found that Los Angeles Superior Court Judge Emile H. Elias had erred in denying Boeing's motions to set aside the jury's verdict completely. Although Judge Elias had reduced the original jury verdict by $120,000,000, the appellate court found that there was insufficient evidence to support any award at all.

The suit, which was originally filed by Boeing in 2004, arose out of satellite manufacturing and launch contracts between ICO Global Communications and Boeing's predecessors. At the heart of the case was ICO's assertion that Boeing Satellite had made material misrepresentations and breached the contracts because it had become a competitor in the satellite business. Although Boeing's original claim for declaratory relief was later dismissed, the action proceeded on the parties' cross-complaints, including claims for fraud, breach of contract, and tortious interference with contract. The jury reached verdicts in ICO's favor on Oct. 21 and 31, 2008, awarding a total of $698,398,986 in compensatory and punitive damages. 2008 Jury Verdicts LEXIS 27250.  

For other recent litigation relating to the parties, see 2011 Jury Verdicts LEXIS 194480 (Summary Judgment for Boeing in Employment Action -- Washington), 2010 Jury Verdicts LEXIS 24452 (Insurance Claim for $80 Million - Washington), 2009 Jury Verdicts LEXIS 435905 (Defense Verdict, Employment Negligence - Washington).


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