The U.S. Court of Appeals for the Federal Circuit ruled in favor of Versata Software, Inc. in its long-running contract and trade secret dispute with Ford Motor Company, reinstating an $82.26 million contract damages award and ordering a new trial on trade secret damages.
The ruling returns the case to the U.S. District Court for the Eastern District of Michigan, where Varnum partner Jaye Quadrozzi served on the Versata trial team that helped secure the original jury verdict alongside Dan Webband Matthew Carter of Winston & Strawn and Steve Mitby of Mitby Pacholder. MoloLamken handled the appeal before the Federal Circuit. This litigation team was featured in Law360’s “Legal Lions” column following the Federal Circuit’s decision.
The decision follows a 2022 jury verdict where the jury awarded Versata $104.6 million after finding that Ford breached its licensing agreement and misappropriated Versata’s trade secrets. On appeal, the Federal Circuit rejected Ford’s cross-appeal on trade secret liability and held that the trial court erred by barring Versata from pursuing unjust enrichment damages on its trade secret claims.
Versata is a software developer that licensed vehicle configuration software to Ford. After the agreement expired, Versata alleged that Ford developed a replacement system using Versata’s technology in violation of the parties’ agreement and trade secret laws.
The ruling restores a substantial portion of the original jury verdict and allows Versata to continue pursuing additional trade secret damages as the case returns to the district court for further proceedings.
