Lockheed Subsidiary Hit with $64.5 Million Verdict
Summary:
Cable & Computer Technology Inc. v. Lockheed Sanders, aka Sanders, a Lockheed Martin Co., CV97-5315 (C.D. Calif.)
In 1996, Cable & Computer Technology Inc. entered into an oral agreement with Sanders, a division of Lockheed Martin Corp., to bid on and win a contract to upgrade mission computers for the B-1B bomber. CCT and Lockheed Sanders spent six months preparing a bid but never signed an agreement. Just 12 days before the bid was due, Lockheed Sanders walked out of the agreement, and shortly afterward, Lockheed Martin Federal Systems was awarded the contract.
In 1996, Cable & Computer Technology Inc. entered into an oral agreement with Sanders, a division of Lockheed Martin Corp., to bid on and win a contract to upgrade mission computers for the B-1B bomber. CCT and Lockheed Sanders spent six months preparing a bid but never signed an agreement. Just 12 days before the bid was due, Lockheed Sanders walked out of the agreement, and shortly afterward, Lockheed Martin Federal Systems was awarded the contract.
CCT sued Lockheed Martin, charging breach of contract, intentional interference with prospective economic advantage, fraud and breach of confidence. A Los Angeles jury found the defendants liable, and awarded $64.5 million, including $ 53.28 million in punitive damages. Jeffrey S. Davidson, Eric C. Liebeler and Lee Heard of the Los Angeles office of Chicago's Kirkland & Ellis represented the Cable & Computer Technology Inc.
This article appeared in its entirety in the April 23, 2001 issue of The National Law Journal.
