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Edlong Corp. v. Nadathur
2013 Ohio 1283
Ohio Ct. App.
2013
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Background

  • Nadathur signed a confidentiality agreement with Edlong limiting disclosure; after leaving Edlong for Givaudan, Edlong sued Nadathur and Givaudan for trade secrets and breach, seeking injunctive relief.
  • Givaudan and Nadathur counterclaimed for tortious interference.
  • Trial court denied injunctive relief and Edlong lost on breach-of-contract and trade-secret claims; appellate court affirmed.
  • Post-trial, Nadathur sought attorney fees under the confidentiality agreement’s prevailing-party provision; the court awarded fees only for the breach-of-contract claim.
  • Magistrate determined fees were not divisible and Nadathur was to recover only half his claimed fees; trial court adopted this, remanding for amounts.
  • On appeal, Nadathur argues the fees are indivisible and the court abused its discretion by halving them; the court agrees and reverses, remanding for full fee award.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether fees were properly reduced to half. Nadathur; fees are indivisible due to intertwined claims. Edlong; fees should be allocated by claim. Abuse of discretion; fees indivisible require full recovery.

Key Cases Cited

  • Bittner v. Tri-County Toyota, Inc., 58 Ohio St.3d 143 (1991) (fees recoverable where claims separable; determine amount reasonably necessary)
  • Lambda Res., Inc. v. Jacobs, 2013-Ohio-348 (Ohio 1st Dist.) (explains non-deductive allocation when multiple claims share core facts)
  • Parker v. I & F Insulation Co., 1st Dist. No. C-960602 (1998) (discusses allocation; not to rely on simple success ratio)
  • Hensley v. Eckerhart, 461 U.S. 424 (1983) (multifactor assessment of hours for fee-shifting; not always proportional to success)
  • New Concept Hous., Inc. v. United Dept. Stores Co., 2009-Ohio-2259 (Ohio 1st Dist.) (courts consider relatedness of claims when awarding fees)
Read the full case

Case Details

Case Name: Edlong Corp. v. Nadathur
Court Name: Ohio Court of Appeals
Date Published: Mar 22, 2013
Citation: 2013 Ohio 1283
Docket Number: C-120369
Court Abbreviation: Ohio Ct. App.