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:
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A summary judgment award exceeding $980,000
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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.
