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Silicon Knights: We'll expose "misconduct" of Epic in court

By Matt Martin

Fri 06 Jan 2012 9:17am GMT / 4:17am EST / 1:17am PST

Dyack shrugs off latest legal setback and claims voluminous evidence against Unreal engine maker

Silicon Knights

Silicon KnightsŪ is a guild of talented individuals dedicated to creating groundbreaking video games....

Too Human developer Silicon Knights has hit out at Epic Games following a court ruling that dismissed testimony of one of its key experts in the long-running legal case between the two developers.

Silicon Knights is suing Gears of War maker Epic Games for misrepresenting the capabilities of its Unreal Engine, not providing support and for the losses caused following the delay of flop title Too Human.

In late December last year a judge granted a motion to exclude the testimony of Terry Lloyd, charted accountant, who claimed that Silicon Knights was owed at least $58 million in damages from the loss of royalties from better sales of the game, publisher bonuses, profits from two sequels with Microsoft and another title - The Ritualyst - with Sega, and the costs to develop a new engine after dropping Unreal.

Epic filed over 20 separate motions to exclude essentially every aspect of the voluminous evidence against them

Denis Dyack, Silicon Knights

The court rejected Lloyd's testimony because he was "not qualified", his methodologies "do not fit the facts of the case" and were "unreliable and speculative", with Epic going so far as to suggest his figures were "made up", according to The Escapist.

In a statement sent to Silicon Knights boss Denis Dyack said that the dismissal of Lloyd "is really one of the few rulings that Epic can say went their way."

"We also think it is important that the full extent of the rulings in the case be known," continued Dyack. "Epic filed over 20 separate motions to exclude essentially every aspect of the voluminous evidence against them, including all of Silicon Knights' expert witnesses (beyond Mr. Lloyd) and all of the third-party information regarding Unreal Engine 3. Other than this one ruling on Mr. Lloyd, they were not successful."

"While we are certainly disappointed that the Court decided that Mr. Lloyd's testimony on damages was not appropriate for trial, we look forward to putting on evidence of the damage that Unreal Engine 3 caused to Silicon Knights, which was substantial and very tangible.

"It is important to understand that the jury decides damages and will hear evidence from many people and see many case documents. Mr. Lloyd's testimony was only one piece."

After waiting for five years for the trial, Dyack added that he is "looking forward to Epic's misconduct finally being aired in the light of day."

"It remains an inescapable fact that Epic is going to trial for Fraud, Unfair Competition, Deceptive Trade Practices, Breach of Warranty, and Breach of Contract," he said.

Court papers reveal that other titles in development at Silicon Knights that never saw the light of day included King's Quest and Sandmim, and Dyack has always maintained that the company would complete the Too Human trilogy despite Microsoft declining to publish the sequels. The company most recently completed X-Men Destiny for Activision.

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Nothing against Silicon Knights. I mean, I love most of their games, including Too Human, but this case is a very hard case to win. Im pretty sure this case can set the future of the company. =\

Posted:4 years ago


Fyzard Brown Sales Associate, VideoGameAdvantage

39 6 0.2
What's funny is that Too Human started to sell after it hit the bargain bin and people who never played dungeon crawlers are starting to pick it up.

Posted:4 years ago


Mark Richardson Independent developer

5 3 0.6
How exactly did they get the figure of $58m anyway?

Posted:4 years ago


Sanjay Jagmohan Project Monitor (Functionality Team Lead), SEGA Europe

10 0 0.0
It might be a long shot, but the fact that Epic Games are (supposedly) in breach of contract could get Silicon Knights something...

Posted:4 years ago


Adam Campbell Producer, Hopster

1,472 1,576 1.1
To this day it sounds ridiculous to me, but we don't know the detail I guess... I don't like how they're hiding the fact their game "Too Human" was simply terrible and flopped for a reason.

Posted:4 years ago


Francis Cermak Website Administrator, HeavenGames LLC

17 3 0.2
Sounds like ths expert was used to prove their alleged damages. If you can't prove your damages, you can't prove your case. The crux of SK's case is that Epic allegedly lied AND SK was harmed because of it. No harm no foul! This type of suit has always reminded me of suits that losing polititians sometimes bring against a company or person that they claim caused them to "lose the election." Well how do you prove that? It's purely speculative. In my home time, a candidate was arrested for striking a cop during an eletion season. He lost (no one expected him to win), and the charge was later dismissed, but he sued the city claiming that he lost the election because of the bad press. He claimed that but for the publicity he would have won. Well, it's impossibe to prove that.

Posted:4 years ago


Sean Warren Inspector

34 0 0.0
@Francis Cremak

"In my home time"...
So, you ARE from a separate time stream. I knew it!
As for the trial, take it to em as much as you can gentlemen. As for "a flop" I disagree, I found it to be a pretty rewarding title. Just remember, money isn't everything.
If you sank in millions and only got thousands back, thats one thing.
If Epic promised functionality and support that id did not provide, that is another...
To those who are arguing that the damages are speculative, you need to understand reasonable estimations, and that within standards, they are completely valid for the purpose of a claim... that they had their accountant found to be unsuitable for witness for trial will seriously effect the outcome... I suggest they find another expert. Good luck underdog.

Posted:4 years ago


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