Boeing is asking the Ninth Circuit to hit the brakes on a $72 million jury award in a high-stakes trade secrets fight with a defunct electric jet startup. In a motion filed Thursday, the aerospace giant urged the appeals court to rehear its August ruling that reinstated the blockbuster damages award, warning that the panel’s decision created “confusion, conflict, and injustice.”

Boeing said the district court judge had carefully scrutinized Zunum Aero Inc.’s claims in a 53-page order and found them lacking. But the appellate panel overturned that ruling without even holding oral arguments, issuing an unpublished memorandum that Boeing now argues bypassed critical procedural safeguards.

Jurisdiction Fight and Standards of Review

Boeing contends the Ninth Circuit should not have had the case in the first place. Because Boeing filed counterclaims involving patent inventorship, the company insists the Federal Circuit — which handles patent appeals — should have exclusive jurisdiction.

Even if the Ninth Circuit keeps the case, Boeing says a rehearing is essential. The company accuses the panel of relaxing the rules around identifying trade secrets, allowing Zunum to proceed without “precisely defining the boundaries” of its alleged proprietary data. Boeing also says the panel engaged in a de novo review when it should have deferred to the district court’s discretion on post-trial motions.

The Jury Trial That Sparked the Fight

The underlying trial, held in May 2024, saw jurors side with Zunum on 11 of 19 trade secret claims. They also found Boeing breached an investor rights letter and interfered with business opportunities, awarding the startup $72 million in damages.

Zunum alleged that Boeing invested seed money in its technology while secretly plotting to misappropriate its designs for electric jet propulsion systems. The startup further accused Boeing of using its industry clout to scare away Safran, a key investor, and ultimately drive Zunum out of business.

District Court Wipes Out Verdict

In August 2024, U.S. District Judge James L. Robart granted Boeing’s motion for judgment as a matter of law, finding Zunum’s evidence “vague and amorphous.” He also conditionally granted a new trial two months later, declaring the damages excessive and the verdict unsupported by the weight of the evidence.

But in August this year, a Ninth Circuit panel revived Zunum’s victory, citing testimony and documents that suggested Boeing indeed altered its in-house designs using Zunum’s trade secrets. The panel also reassigned the case to a new judge after learning Judge Robart’s wife bought Boeing stock during the proceedings.

What Comes Next

Boeing now insists the Ninth Circuit must correct course or risk undermining trade secret law and appellate procedure. Meanwhile, Zunum maintains it was the victim of corporate betrayal, accusing Boeing of crushing its pioneering electric jet ambitions.

Both sides remain locked in a legal showdown that could reshape how courts handle trade secrets in the aerospace industry.

Counsel for Boeing includes attorneys from Munger Tolles & Olson, Hueston Hennigan, and Perkins Coie. Zunum is represented by Holwell Shuster & Goldberg LLP and Corr Cronin LLP.