FOLLOW US

The legal drama surrounding McCarter & English LLP’s $3.77 million fee win is far from over, as former client Jarrow Formulas Inc. has vowed to appeal a Connecticut federal court’s ruling, court filings reveal.

The decision stems from a protracted legal battle following Jarrow’s loss in a Kentucky trade secrets case—a defeat that has now escalated into a high-stakes fight over unpaid legal fees, interest, and allegations of malpractice.

A Costly Defeat: Breaking Down the $3.77M Judgment

The March 12 ruling by U.S. District Judge Michael P. Shea tacked on $1.7 million in prejudgment and offer-of-compromise interest to McCarter & English’s prior victories, bringing the total owed by Jarrow Formulas to an eye-watering $3.77 million.

The law firm had already secured two major wins against Jarrow:

• A summary judgment award exceeding $980,000

• A jury verdict of nearly $1.1 million

Jarrow had countered with legal malpractice claims, but the jury rejected them outright.

McCarter & English Pushed for More, but Punitive Damages Denied

The law firm had sought millions more in punitive damages, but Connecticut’s Supreme Court intervened on a critical point of law.

In answering a postverdict certified question from Judge Shea, the Connecticut Supreme Court ruled that punitive damages generally do not apply in contract disputes—a blow to McCarter & English’s efforts to further increase its payout.

Jarrow Fights Back: New Trial Rejected, Appeal Moves to Second Circuit

Jarrow Formulas, however, is not backing down. The company sought a new trial, arguing that jurors were improperly instructed to assess whether its conduct was “willful and malicious”—a legal standard that Jarrow claims the Connecticut Supreme Court later concluded does not exist.

Despite this argument, Judge Shea denied Jarrow’s request for a new trial on March 10, setting the stage for the company’s appeal to the Second Circuit.

Who’s Who in the Legal Battle

Representing McCarter & English:

• James A. Budinetz, David W. Case, and Karen L. Dowd

• Louis R. Pepe, Michael A. Lanza, and James G. Green of McElroy Deutsch Mulvaney & Carpenter LLP

Defending Jarrow Formulas:

• Proloy K. Das of FordHarrison LLP

• Robert L. Sirianni Jr. of Brownstone PA

What’s Next? The Fight Continues in the Appellate Court

With Jarrow Formulas now taking the case to the Second Circuit, the legal showdown is far from over. The outcome could not only determine whether McCarter & English ultimately collects its multimillion-dollar judgment but also set a precedent for legal fee disputes and contract litigation in Connecticut courts.

One thing is clear—this legal battle is only getting started.