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Contracts
Breach of Contract
Royalties

Peter Brown, Erick Sizemore dba Total Research in Multimedia v. Philips Semiconductors Inc., Philips North America Corp., et al.

Published: Feb. 18, 2004 | Result Date: Oct. 27, 2003 | Filing Date: Jan. 1, 1900 |

Case number: CV779870 Bench Decision –  $0

Judge

Leslie C. Nichols

Court

Santa Clara Superior


Attorneys

Plaintiff

Kevin M. Solan
(Solan Park & Robello LLP)


Defendant

John Skelton


Experts

Plaintiff

Stanley J. Corwin
(technical)

Michael B. Morgan
(technical)

Facts

Plaintiff Peter Brown, a public relations person, and plaintiff Erick Sizemore, a technical writer doing business as Total Research in Multimedia, sued defendants Philips Electronics N.V. and Philips Semiconductors Inc. The plaintiffs alleged breach of two written contracts and one oral contract to write and publish a book on multimedia systems design featuring the defendants' products. The defendants denied the allegations.

Settlement Discussions

At the mandatory settlement conference, plaintiff Brown made a demand of $1,162,000 and plaintiff Sizemore made a demand of $1,632,200. The defendants made no offer to Brown and an offer of waiver of attorney fees and costs to Sizemore.

Damages

As damages, the plaintiffs claimed lost royalties for the publication of the book, as well as ancillary publishing rights for subsequent editions, CD-ROMs, audio books and foreign sales.

Other Information

The plaintiffs received an award of $4,110,800 plus attorney fees and costs following the nonbinding, court-mandated arbitration. The defendants rejected the award. After the arbitrator's award, the plaintiffs attempted to amend their complaint to add causes of action for interference with contract and with prospective advantage, for intentional and negligent misrepresentation and for punitive damages. After five attempts to amend, the court sustained the defendants' demurrer to these counts without leave to amend. The case proceeded to trial on the remaining breaches of contract causes of action. After five days of jury trial, and following the direct and cross-examination of both plaintiffs and their principal publishing expert, the plaintiffs agreed to voluntarily waive all claims against the defendants and dismiss their lawsuit with prejudice in exchange for a waiver of attorney fees and costs.


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