Guidant v. St. Jude Medical Inc. Gets a New Trial: Guidant Corp. won a new trial in its bid for as much as $140 million in damages from St. Jude Medical Inc. over implantable defibrillators.

The U.S. Court of Appeals for the Federal Circuit said two Guidant patents are valid, and a judge was incorrect to overturn a jury's finding of validity. The appeals court sent the case back for a new trial on whether Canada-based St. Jude infringes one of the Guidant's patents.

The Federal Circuit denied a Guidant request to simply reinstate the $140 million jury verdict that had been thrown out by the trial judge in Indianapolis.

The Washington-based appeals court said U.S. District Judge David Hamilton erred when he said the Guidant patents were obvious variations of earlier innovations. Guidant's inventions relate to defibrillators that are permanently installed under the skin and send electric shocks to the heart muscle when they sense abnormal activity.

"Recognition of the problem of treating complex heart arrhythmias does not render obvious the eventual solution," Circuit Judge Pauline Newman wrote for the three-judge panel.

Judge Hamilton ruled in February 2002 that the $140 million in damages was "grossly excessive," since it equaled more than 80 percent of St. Jude's 2001 net income. He also ruled that the jury verdict on damages was tainted by Guidant's chief expert witness, who, the judge said "deceived the jury, deceived the court and deceived St. Jude."

Guidant was ordered to pay some of St. Jude's legal fees as a sanction. Hamilton said if the appeals court reinstated the case, Guidant should accept $28 million in damages.