No attorneys’ fee award is warranted for a defendant who saw all fraud and trade secret claims against him dismissed or abandoned in a lengthy dispute between two trash compacting businesses, Delaware’s highest court said Wednesday.
The state Court of Chancery properly addressed Kevin McLaren’s fee requests when it ordered him to pay his own costs in the litigation, Supreme Court Justice N. Christopher Griffiths said in a six-page order. Justice Griffiths stated, “We find no merit to his arguments and affirm.”
McLaren helped college friend Todd Perri form one of the companies, Dumpster Devil. The men faced fraud and trade secret allegations, but all claims were either dismissed or abandoned over the lengthy period of litigation. The Delaware Chancery Court ultimately ordered all parties to bear their own legal costs, a ruling that McLaren disputed but was upheld by the state’s highest court.
The case highlights the often complex nature of legal fee allocation in commercial disputes, particularly where claims are dismissed or abandoned prior to reaching a resolution. Legal professionals should carefully evaluate the potential for fee recovery and the standards applied by courts in such situations.
The full details of the Delaware Supreme Court’s decision can be found in the Bloomberg Law article.