Pabban Development, Inc. v. Kyphon Sarl

MEMORANDUM

Appellant Kyphon Sari (“Kyphon”) appeals a jury verdict in favor of Pabban Development, Inc. (Pabban). The action arises from a dispute between the parties regarding Kyphon’s purchase of a medical device, the Natrix System, from Pabban. Kyphon claimed the Natrix System was defective and refused to continue its payments to Pabban. Pabban filed an action against Kyphon in Orange County Superi- or Court in March 2010; the action was removed to federal district court pursuant to 28 U.S.C. §§ 1331 and 1441. The parties alleged cross-claims for breach of contract / breach of warranty. The jury found that Kyphon breached its purchase contract with Pabban, but that Pabban did not breach its warranty of merchantability to Kyphon. Kyphon argues on appeal that the district court erroneously denied Kyphon’s motions for judgment as a matter of law, erroneously denied Kyphon’s motion for new trial, improperly instructed the jury regarding the warranty provisions of the contract, and improperly awarded attorney’s fees to Pabban. We affirm.

The district court’s interpretation of the term “knowledge” in Section 3.16 of the parties’ Asset Purchase Agreement (APA) was not legally…