After a contentious Lanham Act battle against competitor Blueworks Corp., Hayward Industries Inc. was handed $1.1 million in lawyer’s fees by a North Carolina federal judge. Citing Blueworks’ “unreasonable” conduct and “flagrant” distortions of fact, Judge Max O. Cogburn Jr. ruled the matter exceptional.
In his Thursday order, Cogburn reprimanded Blueworks for stalling litigation with endless motions and impeding discovery. Although a jury decided the company had not infringed on Hayward’s trademarks, it was held liable for false advertising and violations of the North Carolina Unfair and Deceptive Trade Practices Act (UDTPA). This brought Hayward a $4.9 million reward.
Cogburn declined Blueworks’ request for $3.1 million in fee recovery, saying that Hayward’s sizable damages and Blueworks’ following bankruptcy marked a clear case victory. Rather than being like the 2022 Royal Palm Properties Co., LLC v. Pink Palm Properties Co., LLC case, which had no clear winner, the judge pointed out that Hayward had a lawsuit with a clear winner.
