FCA Upholds Award Of Compound Interest In Cefaclor Damages Appeal

In the latest Cefaclor decision, the Federal Court of Appeal has upheld the award of compound interest as damages for the time value of money lost, where there is trial evidence to support the award.¹

As one of the longest running intellectual property cases in Canada, the history of the case is lengthy and complex. The nearly 25-year legal battle stems from an action for patent infringement commenced by Eli Lilly and Company and Eli Lilly Canada Inc. (collectively, "Lilly") against Apotex Inc. ("Apotex") in June 1997 with respect to the cefaclor antibiotic drug product. Approximately 12 years later, the liability judgment found that each of the eight patents at issue were infringed by Apotex.² The liability judgment was upheld by the Federal Court of Appeal,³ and following an unsuccessful leave to appeal to the Supreme Court of Canada,⁴ the determination of remedies fell to the Federal Court.