Boeing Appeals Verdict

ICO Wins Multi-Million-Dollar Award From Jury

The Boeing Co. [BA] announced it will appeal a jury verdict against Boeing and for ICO Global Communications Holdings Ltd.

J. Michael Luttig, Boeing senior vice president and general counsel, predicted the appeal may consume several years.

The Los Angeles jury ordered Boeing to pay ICO $371 million, broken into $279 million for breach of contract and fraud in satellite pricing, and $91.6 million in fraud relating to launches, ICO stated.

Further proceedings will determine whether ICO can collect yet another $91.6 million from Boeing for tortuous interference, ICO stated.

But when, if ever, ICO will collect that sum remains to be seen.

"I have directed that an appeal be taken from the decision rendered by the California jury," Luttig said. "That appeal may well take several years to run its course. But there were fundamental errors in the case as it was submitted to the jury. There were fundamental errors in the conduct of the trial. There were fundamental errors in the instructions to the jury and in the court’s interaction with the jury during the deliberations. We thus have significant grounds for appeal."

ICO sued Boeing in Los Angeles Superior Court, alleging breach of a satellite network contract. Jury deliberations began Sept. 15.

The award to ICO does not include any pre-judgment interest that is to be applied by the judge under California law, ICO observed.

In view of the jury’s finding that Boeing and one of its subsidiaries acted against ICO with malice, oppression or fraud, the jury beginning tomorrow will hear evidence and argument to determine the amount, if any, of punitive damages to be awarded to ICO, the plaintiff company stated.

"The jury has now ruled on the facts in this case, and we are pleased that this case has reached a verdict after years of litigation," John Flynn, executive vice president and general counsel for ICO, said.

"The jury agreed with ICO’s claims regarding fraud, breach of contract and tortious interference on the part of Boeing and its … subsidiary."