No Fees for Firm That Didn’t ‘Win’ Trade Secret Suit: 5th Cir.

A company that had a Defend Trade Secrets Act case against it dismissed without prejudice can’t recover attorneys’ fees for its effort in defending the case, the U.S. Court of Appeals for the Fifth Circuit ruled.

That’s because for a defendant to be a prevailing party entitled to attorneys’ fees under the DTSA, it must win the case and when a suit is dismissed without prejudice, the dispute isn’t affirmatively decided and the defendant isn’t a prevailing party, the Nov. 13 opinion by Judge Gregg J. Costa said.

The defendant argued the court’s rule allows a plaintiff to evade paying ...