Humetrix, Inc. v. Gemplus S.C.A.
United States Court of Appeals for the Ninth Circuit
268 F.3d 910 (2001)
Humetrix, Inc. (plaintiff), a U.S. health-care consulting company with ten years in business, entered oral and written agreements with Gemplus S.C.A. (defendant), a Luxembourg Smart Card manufacturer, to develop portable patient-information data cards; after a Gemplus manager with a competing trademark interest attempted to sabotage the relationship and Gemplus acquired a U.S. subsidiary capable of performing Humetrix's role, Gemplus ceased communicating with Humetrix. Humetrix sued for breach of contract and related claims; a jury awarded $15 million in lost-profits damages based on Humetrix's invested time, resources, and existing contracts with two California counties, and the trial court also declared Humetrix entitled to a disputed trademark. Gemplus appealed.
Whether a breach of contract plaintiff may receive an award of lost profits if it can show that the defendant's failure to perform was the cause of plaintiff's lost profits.