PreMD retained Ogilvy Renault to manage its patent portfolio.
Ogilvy negligently failed to pay maintenance fees, causing two US patents to lapse.
PreMD's business ultimately failed, though the trial judge found the failure was due to lack of regulatory approval and market acceptance, not the lapsed patents.
The trial judge awarded PreMD $1,063,069 in reliance damages and mitigation expenses, rejecting claims for lost profits and broader reliance damages.
PreMD appealed, seeking $14.4 million in reliance damages for pre-contractual and post-contractual expenses.
Ogilvy cross-appealed the damages calculation and costs award.
The Court of Appeal dismissed both the appeal and cross-appeal, upholding the trial judge's findings that the additional expenses claimed by PreMD were not caused by the breach and would not have been recouped even if the patents had been maintained.
