Trade Secrets: Lower Court Did Not Erroneously Deny Civil Code § 3426.4 Fees To Unsuccessful Plaintiff In Trade Secret Misappropriation Case

Trial Judge Was Allowed To Credit Plaintiff’s Declaration Showing No Subjective Ill-Will.

            Under Civil Code section 3426.4 (see our category “Trade Secrets”), trial judges have discretion to award attorney’s fees and costs to a prevailing party if they determine that the trade secrets misappropriation claim was objectively and subjectively specious in nature.  Many times, the determination comes down to the state of mind of the plaintiff in commencing and prosecuting the case, although this scrutiny is aided by what objectively happened during the course of a lawsuit.  That is what is came down to in Attia v. Google, LLC, Case No. H049586 et al. (6^th Dist. Nov. 3, 2023) (unpublished).

            Plaintiff lost a trade secrets misappropriation case against Google, but he opposed a section 3426.4 fee motion on the basis that he had no subjective bad faith in commencing or maintaining the lawsuit.  The trial court credited his declaration to that effect.  Even though subjective intent was irrelevant for contractual interpretation purposes on the merit of the dispute, it was probative on the subjective element of section 3426.4, with the lower court’s crediting of his testimony dispositive on appeal.