When corporations or individuals enter into a written contract, it is crucial that all parties involved follow the outlined terms of said contract. When these terms are violated, a company is at risk of having a lawsuit filed against it in a New Jersey court. This could result in millions of dollars of damages being paid to the other party or parties that suffered due to the breach of contract claims.
Mylan Inc. came out on top in a recent lawsuit regarding breach of contract. The lawsuit was filed against GlaxoSmithKline and was in regard to the extended-release tablets of Paroxetine Hydrochloride. This drug is primarily used for the treatment of depression.
Few specifics were released as to what caused the lawsuit to be filed, although it seemed to center on intellectual property rights. As a result of the suit, the New Jersey U.S. District Court ordered Glaxo to pay Mylan nearly $107 million in various damages. Since May 2008, when Mylan released the generic version of the known depression drug Paxil, Mylan is the sole company to have received ANDA approval from the Federal Drug and Administration.
Contracts are in place for a reason and not just in the medical industry. When someone fails to follow the rules outlined in the contract, the other party can file breach of contract claims, which are serious accusations and can hold financial penalties. New Jersey business and commercial law can be quite complex. Therefore, it is critical that one considers becoming familiar with the law as they work toward ensuring that someone is held responsible for not upholding the terms of a contract.
Source: Observer-Reporter, “Mylan awarded $106.7 million in suit against Glaxo“, , March 27, 2014