Mycogen Corp. v. Monsanto Co. (2002) 28 Cal.4th 888

In 1993, Mycogen sued Monsanto for breach of an agreement giving Mycogen’s predecessor an option to negotiate rights to license Monsanto’s technology for re-engineering genes in corn, cotton and canola, making them resistant to insects and herbicides. In that lawsuit, Mycogen I, the court eventually rendered a judgment of declaratory relief and specific performance for Mycogen. Then, in a second lawsuit, Mycogen II, Mycogen sued Monsanto to recover future profits the gene technology might have produced.

On appeal, Horvitz & Levy LLP represented Monsanto and obtained a reversal of the resulting $174.9 million judgment, on the ground that the primary rights theory and the res judicata doctrine precluded Mycogen from suing more than once for the same breach of contract.

When the California Supreme Court granted review, Horvitz & Levy LLP was again asked to represent Monsanto. We persuaded the court to affirm the Court of Appeal’s reversal of the underlying judgment which, with interest, had increased to $250 million. (Click to see an Adobe Acrobat version of the brief we filed in the Supreme Court on Monsanto's behalf.) In a 7-0 decision, described by the Recorder as a "huge victory" for Monsanto, the Supreme Court held that the final judgment in Mycogen I granting declaratory relief and specific performance for breach of contract barred the second lawsuit in Mycogen II for damages based on the same breach of contract.

Monsanto’s stock rose almost ten percent after the Supreme Court’s decision was announced.

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