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Federal Judge allows breach of contract case against University of Pennsylvania to proceed

A federal judge has allowed a breach of contract lawsuit against the University of Pennsylvania to move forward, despite claims it was time-barred by the statute of limitations. U.S. District Judge John F. Murphy ruled that factual questions remain regarding the university’s obligations under its patent policy with Susan M. Faust, a former post-doctoral scholar in the gene therapy lab. Faust alleges that Penn violated its patent policy by licensing her inventions without notifying or compensating her, involving entities like Biogen and Regenxbio. The case, Faust v. The Trustees of the University of Pennsylvania, centers around claims that the university failed to fulfill its contractual obligations to notify her about licensing deals and transfer ownership of abandoned patent applications. While the defendants argued that Faust’s claims were time-barred, the judge found dismissal premature, citing uncertainty over when the statute of limitations began to run due to the ongoing nature of the contractual relationship. The court did dismiss Faust’s claim under Pennsylvania’s Wage Payment and Collection law but allowed her other claims, including tortious interference, to proceed.

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