Facts

Hooman Asbaghi and HBA Medical Group Inc. sued Neil Nydegger and Nydegger & Associates, involving allegations of legal malpractice.

PLAINTIFFS' CONTENTIONS:
Plaintiffs retained defendants to obtain patent rights related to a dental device and ultimately obtained a patent in March 2003. A maintenance fee became due in August 2006. Plaintiffs allegedly received a standard form from defendants regarding patent maintenance fees. Plaintiffs checked the box to abandon the patent, but nevertheless included a check for "Patent Maintenance." The check the plaintiff included with the letter was for the exact same amount as the fee due, which was $685. Defendants subsequently deposited the check, but allowed the patent to be abandoned. As such, when plaintiffs went to market their product, they did not get a call back from the companies they solicited upon finding out that the patent had been abandoned. As such, plaintiffs sued defendants for breach of fiduciary duty, professional negligence, and comparative negligence. Plaintiffs contended that defendants neglected plaintiffs' patent file.

DEFENDANTS' CONTENTIONS:
Defendants allegedly sent out a standard form notice to plaintiffs about patent maintenance fees. Plaintiffs allegedly checked the box to abandon the patent and, as such, defendants abandoned the patent. Overall, defendants claimed their conduct met the standard of care. Moreover, defendants challenged the viability of the product, which could not be developed into a working prototype for the necessary clinical trials of FDA approval by a large manufacturing company under a licensing agreement with HBA.

Settlement Discussions

HBA demanded $3,999,999 in settlement, which defendants countered with a $200,000 offer of settlement.

Damages

HBA sought between $90 million to $150 million in lost profit damages.

Injuries

HBA lost millions in business opportunities to market and license the patent product.

Result

The court granted defendants' nonsuit motion as to plaintiff Hooman Asbaghi and plaintiff HBA Medical Group Inc. dismissed its breach of fiduciary duty claim with prejuice after the hearing on defendants' nonsuit motion as to that claim. The matter continued only on HBA's claims of professional negligence and the comparative negligence. Ultimately, the jury found that defendants were negligent and that its negligence was a substantial factor in causing HBA harm. It then determined that HBA was damaged in the amount of $61,587,000. The jury, however, also found HBA comparatively negligent and apportioned 25 percent of fault to HBA, 37.5 percent fault to Nydegger, and $37.5 percent fault to the law firm. After the offset, HBA was set to recover $46,190,250.

Other Information

FILING DATE: Sept. 10, 2013.

Poll

9-3