Loral Aerospace v. Intraspace
Published: Jun. 28, 2001 | Result Date: May 4, 2001 | Filing Date: Jan. 1, 1900 |Case number: CV755366 Verdict – $8,500,000
Facts
In 1993, defendant/cross-complainant, Intraspace, entered into a contract with Continental Satellite Corporation
to build a direct broadcast satellite system for $270 million. Continental had a valuable FCC license that
allowed it to operate a direct broadcast satellite system similar to systems such as Direct TV and Dish
Network.
Cross-defendant, Loral Aerospace, acquired 51 percent of ContinentalÆs stock in 1995 based on an option
given in 1990. Loral Aerospace also owned 51 percent of Space Systems/Loral, which also manufactured
satellites. In late 1995, Continental, over LoralÆs objection, issued stock to Intraspace to make a contract
payment. Continental terminated the contract with Intraspace "for convenience" and signed a $460 million
contract with Loral AerospaceÆs subsidiary, Space Systems/Loral.
Loral Aerospace brought this action to declare invalid the stock issued to Intraspace. Intraspace then filed a
cross-complaint against Loral for interference with contract. Certain issues were bifurcated and trial proceeded
on IntraspaceÆs cross-complaint.
Damages
Cross-complainant Intraspace, claimed $40 million in lost profits and an undisclosed amount for loss of reputation.
Deliberation
three days
Poll
9-3 (liability), 9-3 (damages)
Length
four weeks
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