Interlocutory Appeal Rejected

January 13, 2025

A panel majority, after a motions panel accepted an interlocutory appeal, dismissed that appeal for lack of jurisdiction. The issue involved the appropriate measure for the calculation of “reasonable royalty” damages, and the majority reasoned:

If we reversed now, we would have no “immediate impact on the course of the litigation” because Silverthorne has not yet proven liability. The parties will proceed to trial regardless of whether we weigh in, and “nothing that we can do will prevent [the] trial.” Bear Marine, If Silverthorne fails to establish liability, our premature answer to the question will not have affected the litigation at all. Any dispute
about damages will have “evaporate[d] in the light of full factual development.” 

Even assuming arguendo that Silverthorne could establish liability, thereasonable-royalty standard may still not be controlling. Silverthorne claims that the district court’s order prevents it from proving damages. If that were true, the question could have controlled the case. As the district court noted, though, its order did “not automatically bar [Silverthorne] from proving damages,” as long as it does so according to the standard defined in [precedent].”

J.A. Masters Investments v. Beltramini, No. 24-20006 (Jan. 3, 2025) (citations and footnote omitted). A dissent had a different view of the legal issue and the section 1292 process.

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