QC Manufacturing, Inc. v. Solatube International, Inc., et al.

Analysis Group was retained on behalf of Solatube International, the respondent in an arbitration initiated by QC Manufacturing (QC). As part of a settlement agreement in a previous patent infringement matter, Solatube was prevented from installing whole-house fans that were “braced to the attic floor.” QC subsequently discovered fan installations that it alleged violated the settlement agreement, and sought damages in an arbitration before JAMS.

An Analysis Group team led by Principal Eric Korman supported Managing Principal Jeffrey Kinrich, who filed an expert report and testified on damages and causation issues, and rebutted the testimony of an opposing damages expert. Mr. Kinrich opined that QC had not established a causal link between the claimed violation of the settlement agreement and QC’s alleged economic harm. He also opined that, to the extent QC suffered any economic harm as a result of the alleged violations, that harm bore no reasonable relationship to the settlement agreement’s damages clause.

The JAMS arbitrator found that while Solatube had installed fans that violated the settlement agreement, QC had not established that it suffered economic harm and was not entitled to damages.