Today, the Sixth Circuit affirmed a jury award of $9,282,188 to TRW for Micrel’s breach of a contract to supply application-specific integrated circuits (ASICs).  TRW planned to use the ASICs as replacement parts in automobile air bags.  Micrel argued that the district court erred in throwing out its fraudulent inducement claim and in allowing the jury to award both "cover" damages under the Ohio Uniform Commercial Code and "expectancy" damages under Ohio common law.  The Sixth Circuit held that Micrel presented no evidence that TRW misrepresented its intentions and that Ohio law permitted recovery of both cover damages (difference between contract price and price for substitute goods from alternative source) and expectancy damages (basically loss of profits).  Micrel, Inc. v. TRW, Inc., No. 06-3177 (6th Cir. May 4, 2007).

Barry Barnett

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