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ARTICLE ID 194144

$________ – CONTRACT – FAILURE TO REMIT MONIES DUE UNDER CONTRACT – PLAINTIFF ENTERED INTO AN AGREEMENT WITH DEFENDANT REGARDING SALE OF A MEDICAL DEVICE

USDC, Central District of California

In this contract matter, the defendant failed to make agreed upon contractual payments to the plaintiff for its sale of a medical device. The defendant maintained that the product was defective, and filed a counterclaim for breach of contract and fraud.

The plaintiff specializes in the design, development, and manufacture of innovative medical devices. It, then, sells these devices to various medical device companies. In this matter, the plaintiff sold its patented spinal cement-delivery technology, used in spinal surgery, called the Natrix System, to the defendant on August 7, ________ under a written contract, the asset purchase agreement. The defendant, Medtronic, guaranteed the defendant Kyphon’s performance under the asset purchase agreement. The plaintiff contended that the defendants breached the contract by failing to make payments to the plaintiff under the terms of the asset purchase agreement. The plaintiff contended that the defendants failed to make payments totaling more than $________ under the terms of the agreement.

The defendants denied the allegations, and counterclaimed for breach of contract, alleging that the product was faulty and alleging fraud by the plaintiff.

The matter proceeded to trial.After the six day trial, the jury deliberated approximately one-half day and returned its verdict in favor of the plaintiff and against the defendants on both the plaintiff’s complaint and the defendants’ counterclaim. The plaintiff was awarded damages in the amount of $________.

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