The Court of Appeals of Virginia on Tuesday overturned Appian Corp.‘s monumental $2 billion trade secrets judgment against Pegasystems Inc. The appellate court identified multiple errors by the trial court, warranting a new trial for the largest jury award in state history.
Errors in Unjust Enrichment Damages
The trial court’s decision to allow Appian to use Pegasystems’ total sales over a specific period to demonstrate unjust enrichment damages was deemed erroneous. The appeals panel highlighted that Pegasystems was improperly barred from proving that a significant portion of its sales occurred in markets where it did not compete with Appian.
Moreover, the appellate court noted that the trial court misstepped by relieving Appian of its burden to establish a causative link between the alleged misappropriation and any damages incurred, a critical component in trade secrets cases.
Appian $2 billion trade secrets : Exclusion of Key Evidence
In another significant error, the trial court prohibited jurors from hearing about the number of individuals who had access to Appian’s platform. Pegasystems contended this information was vital to determining whether Appian had adequately safeguarded its trade secrets.
