In a recent trade secrets dispute involving two trash compacting companies, the Delaware Supreme Court heard arguments over whether a defendant who faced years-long litigation deserves to have his legal costs covered by another party.
Kevin McLaren, a defendant in the dispute and a college friend of Dumpster Devil’s founder Todd Perri, saw all the claims against him dismissed or abandoned after a prolonged period of litigation. Despite this, his request for attorneys’ fees was denied by a Court of Chancery opinion.
Arguing before the high court on Wednesday, McLaren’s attorney, Steven Fedder of Fedder & Janofsky, asserted the significance of revisiting and potentially reversing the Court of Chancery’s decision.
As part of his argument, Fedder emphasized the need for remanding further proceedings to establish the amount McLaren is due in legal costs due to the now-dismissed claims against him.
This case continues to add to the complex discussions surrounding cost awards in litigation cases, specifically those cases which are ultimately dismissed or abandoned yet burden one party with significant legal fees.
This case, along with its broader implications, provides food for thought for legal professionals dealing with trade secret disputes, serving as a reminder of the potential financial implications that can stem from prolonged litigation.
For more details on the proceedings, see here.