COLUMBUS, Ohio (Legal Newsline) - A nearly $4 million award in attorneys fees against a lighting company was reversed in the Supreme Court of Ohio.
A lower court initially awarded Phoenix Lighting Group, LLC and Jack Duffy and Associates, Inc. $5,518,335 in its lawsuit with Genlyte Thomas Group, LLC, a.k.a. Daybrite, Capri, Omega (DCO).
The trial court went on to calculate attorneys fees using the lodestar method of multiplying the hourly rate by the number of hours worked. The trial court determined the lodestar amount was $1,991,507 but took things a step further and awarded double that amount of $3,983,014, considering the complexity of the case.
The Supreme Court on March 25 reversed the ruling as it found the lodestar method was enough. It said the only time an award outside of this method should be granted is if for some reason it doesn’t calculate to a reasonable fee and compensation for the counsel.
“Because the lodestar reflected a reasonable fee based on the prevailing market rate for the services rendered by Phoenix’s attorneys, we reverse the judgment of the court of appeals as to the award of attorney fees, and we remand this cause to the trial court to enter judgment awarding fees in the amount of the calculated lodestar,” wrote Judge Melody J. Stewart.
Phoenix is a company that sells Acuity Brand Lighting manufactured products. Phoenix workers Jason Brown and Guy day were in talks with the owner, Patrick Duffy, to purchase the company. They also reached out to Acuity Brand competitor DCO with hopes of launching their sales agency to sell DCO products. They allegedly used information from Phoenix, and funding from DCO to launch Intelligent Illumination, and hired many Phoenix employees to work for the new company.
Phoenix sued for tortious interference with business relationships, tortious interference with contractual relationships, misappropriation of trade secrets, unfair competition, civil conspiracy, and frivolous conduct.