Miller UK vs. Caterpillar*

Background:

Miller had designed a “bug coupler” technology and was distributing its product through a licensing agreement with Caterpiller.  Caterpillar created their own version of the “bug coupler” and cancelled the contract with Miller.  This forced Miller to terminate 300 of its 400 employees.  Miller had to convince the state courts to allow litigation finance given Illinois’ continued recognition of the doctrines of champerty and maintenance and further convince the courts that sharing information with their funder did not waive the work product doctrine. Miller was successful on both accounts.  After a 5 year period, Miller ultimately was successful in its suit and was awarded USD$74.6 million which ended up close to USD$100 million with accumulated interest.

 

Case Characteristics

Jurisdiction: Illinois, USA
Case Stage: Late stage
Case Type: Contract breach & trade secret misappropriation

Case Economics:

Proceeds: ND*
Investment: ND*
Multiple of Capital: ND*

 

Case Overview:

Litigation: Plaintiff sued Caterpillar for breach of contract and trade secret misappropriation under the Illinois Trade Secret Act

Damages: Lost profits

Stage: Pre-settlement case, funder brought into the case at the early stages of the case

 
 

Manager Assessment:

Case Merits: Plaintiff had to contest multiple attacks through heated discovery, including the applicability of champerty and maintenance and work product doctrines. Merits of the case were strong.

Representation: Plaintiff hired Kirkland Ellis

Collectability: Caterpillar is a profitable and publicly-listed company which ensured collection

Commitment: Undisclosed

 
 

Case Outcome:

Plaintiff won the largest ever award under the Illinois Trade Secret Act

Miller won ~$100MM (according to press estimates, inclusive of interest) and planned on using its award to repay debts and invest in the business

 
 
 

Miller recently celebrated its 40th year in business and is targeting ￡50 million in revenue in 5 years

* Source: Various articles in Reuters, Above the Law and Mail Online. ND = Not Disclosed