Federal Circuit Endorses Unjust Enrichment Damages Under DTSA
Federal Circuit formally allows unjust enrichment damages for trade secret claims under the DTSA.
Why it matters: This ruling provides legal teams with clearer guidance on claiming damages beyond lost profits, impacting litigation strategy and damages calculation in trade secret cases.
- On September 24, 2026, the Federal Circuit recognized unjust enrichment as a damages theory under the Defend Trade Secrets Act (DTSA).
- The decision follows the Second Circuit's 2023 ruling in Syntel Sterling Best Shores Mauritius Ltd v. TriZetto Group Inc., which endorsed avoided costs as damages.
- In May 2026, the Federal Circuit reinstated an $82 million damages award against Ford Motor Company in a trade secret case raising unjust enrichment.
- The ruling clarifies that savings gained from misappropriated trade secrets can serve as equitable damages, expanding remedies available to plaintiffs.
On September 24, 2026, the Federal Circuit formally confirmed that unjust enrichment can be used to calculate damages in cases arising under the Defend Trade Secrets Act (DTSA). This means courts may award damages reflecting the financial gains defendants achieved by using stolen trade secrets, beyond just compensating for plaintiff losses.
This decision aligns with the Second Circuit's 2023 ruling in Syntel Sterling Best Shores Mauritius Ltd v. TriZetto Group Inc., where avoided development costs—money defendants saved by not creating their own technology—were deemed a valid basis to measure unjust enrichment damages under the DTSA. That case involved a $285 million award demonstrating the scale of such remedies.
Earlier in 2026, the Federal Circuit reinstated an $82 million verdict against Ford Motor Company stemming from a trade secret misappropriation lawsuit that involved unjust enrichment claims. The court emphasized that damages representing benefits retained by a defendant through wrongful acts are appropriate under federal trade secret law.
For legal professionals, this ruling provides explicit guidance on calculating equitable damages based on the financial gains avoided by defendants through misappropriation. The National Law Review notes this clarity helps intellectual property litigators and corporate counsel better assess damages strategies and remedies in DTSA cases.
By the numbers:
- September 24, 2026 — Date of Federal Circuit ruling endorsing unjust enrichment damages under DTSA
- $285 million — Amount awarded in Second Circuit’s 2023 Syntel Sterling case involving avoided development costs
- $82 million — Damages reinstated by Federal Circuit in May 2026 against Ford Motor Company for trade secret misappropriation
Yes, but: While the ruling expands damages options, courts still evaluate unjust enrichment claims case-by-case, so outcomes may vary depending on facts and evidence.
What's next: Legal teams will watch for future Federal Circuit decisions refining the scope and limits of unjust enrichment damages in trade secret claims.