Supreme Court of Delaware
Glaxo Group Limited v. Drit Lp
March 3, 2021
Summary
The Court held that the settlement agreement ended GSK's royalty obligation when GSK disclaimed the patent because a disclaimed claim was excluded from the agreement's definition of a Valid Claim. It also held that the implied covenant of good faith and fair dealing could not impose a limitation on GSK's unqualified contractual right to disclaim the patent because the agreement addressed the conduct and left no gap to fill. The Court therefore reversed the Superior Court's judgment awarding DRIT damages.