Silicon Knights' began legal proceedings in 2007, suing Epic Games for breach of contract, misrepresentation and lack of development support. The developer accused Epic of "sabotaging" Unreal Engine 3 licensees by withholding updates and investing proceeds in Gears Of War development instead.
The expert witness denied testimony is Terry Lloyd, a chartered accountant, who claimed that Silicon Knights was owed at least $58 million in damages resulting from the loss of royalties incurred through unsatisfactory sales and the delay of Too Human; the absence of income from its planned, though unreleased, sequels; and the cost of developing an in-house engine after abandoning Unreal.
Speaking to Gameindustry.biz, Dyack said that he is looking forward to airing the facts of the case despite this setback, and that the ruling was "one of the few…that Epic can say went their way."
"Epic filed over 20 separate motions to exclude essentially every aspect of the voluminous evidence against them," he continues, "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."
Court documents have also revealed that other planned Too Human titles had been cancelled – including King's Quest and Sandman games – though Dyack stressed that his company still intends to complete the Too Human trilogy in time.
He added: "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."