Legal Question in Intellectual Property in Pennsylvania

Arbitration

Is there any legal remedy subsequent to an arbitration (American Arbitration Association) ruling when it is discovered that the opposing party in the arbitration gave untruthful testimony. The issue at arbitration was potential patent infringement and patent value related to an original patent estate sale to the defendants. The defendants argued successfully that the patent value was low when in fact they knew this not to be true; they had already licensed the plaintiff's patent to third parties for tens of millions of dollars. The defendants declared in the arbitration hearing that the patent estate was worthless when in fact it was worth millions. This later fact was not discovered until several years later, well after the arbitration.


Asked on 3/05/09, 3:37 pm

1 Answer from Attorneys
Joseph Chovanes Chovanes & Associates

Re: Arbitration

There may be but I believe it would go to the false testimony as causing damages -- not to an attempt to overturn the original AAA award.

So one of the first questions is the testimony false? The witnesses could have believed it, could have been testifying as to their opinions not fact (and so can't really prove falsity,) etc.

A second question is whether the decision depended upon the false testimony - AAA awards usually have little or no factual predicates, making it difficult to say the opinion hinged on the testimony -- whether false or not.

A third question is whether you have a record of the false testimony -- often arbitration proceedings aren't transcribed. The AAA destroys case records after six months I believe.

Without strong answers to these and other issues, a judge would be extremely reluctant, I believe, to touch the arbitration award -- and wouldn't do so at all I think where the record is cloudy, where there is no transcript, etc.

It seems to me the best approach is to attack the false testimony as actionable -- which can be done through a suit based in fraud etc. and seek recovery on that ground.

I'd be happy to talk to you further -- write me. Take care.

This answer is not legal advice nor is to be taken as such. It is provided for informational purposes only. It is not guaranteed to be correct, complete, or up-to-date. It is only being provided "as-is" and should NOT be relied upon for any purpose.

Read more
Answered on 3/05/09, 4:23 pm


Related Questions & Answers

More Intellectual Property questions and answers in Pennsylvania