Vacco Industries, Inc. v. Van Den Berg

Defendants and appellants Tony Van Den Berg (Van Den Berg), Thomas Eastlack (Eastlack) and Kamer Solenoid, Inc., a California corporation (Kamer; collectively defendants) appeal from a judgment entered against them following a jury verdict in favor of the plaintiffs and respondents Vacco Industries, Inc., a California corporation (Vacco) and Emerson Electric Co., a Missouri corporation (Emerson; collectively, plaintiffs). Plaintiffs were awarded compensatory and punitive damages, as well as injunctive relief, for defendants’ misappropriation of plaintiffs’ trade secrets. In addition, plaintiffs received a posttrial award of attorney fees in the sum of $526,360. We affirm the judgment after striking the portion of the fee award which was based on the third party tortfeasor doctrine. The award of fees under that doctrine was both procedurally and substantively incorrect. Such fees may not be awarded by the court on a posttrial motion, but rather are damages subject to pleading and proof before the trier of fact. As to the substantive issue, this is essentially a “two-party” lawsuit and an award of fees under the third party doctrine is not legally justified.

Factual and…