BALTIMORE (LN) — U.S. District Judge Lydia Kay Griggsby entered summary judgment for Tecore, Inc. on liability against the Republic of Yemen for breaching a contract to provide a secure wireless network, but denied the company's request for $2.5 million in damages due to disputed evidence of actual costs.

Tecore, a wireless telecommunications infrastructure integrator based in Hanover, Maryland, sued Yemen for breach of contract after Yemen failed to fully pay an initial payment due on the execution date of a Master Purchasing Agreement.

The suit alleged Yemen paid only $0.50 million of the $3 million Initial Payment on February 8, 2022, leaving a $2.5 million balance. Tecore sought to recover that difference, plus prejudgment interest, as damages for the breach of Section 3 of the agreement.

The parties agreed the Master Purchasing Agreement was valid and that Yemen materially breached it by failing to make the full timely payment. Yemen also conceded it had no valid defense to the breach.

However, Griggsby denied Tecore’s request for summary judgment on the amount of damages, ruling that material facts remained in dispute regarding the costs Tecore incurred under the contract.

The judge noted that Section 3 of the agreement required Yemen to pay 50% of the Total Project Cost, which the parties agreed was $6 million, rather than a fixed liquidated damages amount.

Because the contract was not a liquidated damages provision, Griggsby wrote that Tecore’s actual costs were relevant to determining the damages owed.

Yemen argued, and Tecore did not dispute, that Tecore failed to provide receipts or other evidence showing the prices paid for equipment or the costs incurred for services, including shipping the Phase One Equipment.

The court found these undisputed gaps in evidence meant Tecore had not met its burden to show with reasonable certainty what its damages were.

Tecore had also relied on Maryland’s commercial code regarding the price due to a seller of goods, but Griggsby noted the agreement covered both equipment and professional services, making that statute inapplicable.

The court entered judgment summarily in favor of Tecore on liability for breaching Section 3 of the MPA, but left the damages issue for further proceedings.

The parties are directed to file a joint status report by July 1, 2026, stating their views on the status of the case, including the status of their settlement conference, and proposing a schedule for further proceedings if warranted.