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.