Williams & Connolly successfully represented GlaxoSmithKline LLC (“GSK”) in a landmark case regarding a purported breach of the implied covenant of good faith and fair dealing in a patent licensing contract. On March 3, 2021, the court ruled unanimously in favor of GSK, holding that the implied covenant cannot override the exercise of a contractual right. The court’s decision reaffirms the importance of contractual language and safeguards the predictability of Delaware contracts.
The court’s decision also overturns a $57 million damages verdict against GSK, and relieves GSK of the obligation to pay continued royalties under the contract on U.S. sales of Benlysta, GSK’s blockbuster Lupus treatment.
Partner Lisa Blatt argued the case before the Delaware Supreme Court. Other members of the Williams & Connolly team representing GSK include Sarah Harris, Kim Broecker, and Sumeet Dang.
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