Pliteq, Inc., et al. v. Maged Mostafa

CourtDistrict Court, S.D. Florida
DecidedMarch 31, 2026
Docket1:23-cv-24868
StatusUnknown

This text of Pliteq, Inc., et al. v. Maged Mostafa (Pliteq, Inc., et al. v. Maged Mostafa) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pliteq, Inc., et al. v. Maged Mostafa, (S.D. Fla. 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 23-CV-24868-ELFENBEIN

PLITEQ, INC., et al.,

Plaintiffs,

v.

MAGED MOSTAFA,

Defendant. ______________________________/

ORDER ON MOTION FOR ATTORNEY’S FEES

THIS CAUSE is before the Court on Plaintiffs Pliteq, Inc. (“Pliteq”) and Pliteq Building Materials, LLC’s (“PBM”) Motion for Attorney’s Fees (the “Motion”), ECF No. [310], in which Plaintiffs request an award of $848,133.45 in attorney’s fees. Defendant, Maged Mostafa (“Defendant”), has since filed a Response in opposition to the Motion, ECF No. [314], and Plaintiffs have filed a Reply in support of the Motion, ECF No. [319]. For the reasons explained below, Plaintiffs’ Motion, ECF No. [310], is GRANTED in part and DENIED in part. I. INTRODUCTION Because the Parties are familiar with the facts and the Court has recounted them in several earlier orders, see ECF No. [73]; ECF No. [214]; ECF No. [251], it includes only the most relevant details here. As the Court has noted before, this case arose out of a dispute between an employer (Pliteq and PBM, collectively “Plaintiffs”) and a former employee (Defendant). Pliteq is a Canadian corporation that operates in the engineering and manufacturing fields. See ECF No. [120] at 2. PBM is a Pliteq affiliate limited liability company organized under the laws of the United Arab Emirates (“UAE”) and based in Dubai. See ECF No. [120] at 2. Defendant is a resident of Dubai, who from 2018 to 2023 was PBM’s General Manager. See ECF No. [120] at 2, 5. During his employment with Plaintiffs, Defendant signed two documents important to this case: an employment contract, see ECF No. [121-1], and a standalone confidentiality agreement,

see ECF No. [121-2]. See ECF No. [120] at 16–17. In those documents, Defendant agreed to “a strict confidentiality provision prohibiting the use or disclosure of PBM’s confidential and trade secret information.” See ECF No. [120] at 5–6. After an investigation revealed Defendant had performed an “unauthorized mass-download of Plaintiffs’ most sensitive financial and trade secret Information,” Plaintiffs fired Defendant in November 2023. See ECF No. [120] at 7–10. When Defendant refused to confirm that he had deleted Plaintiffs’ proprietary information and refused to return his company-issued cellphone and laptop, Plaintiffs filed this lawsuit in December 2023. See ECF No. [1] at 7–9; ECF No. [120] at 2, 7–10. In their Amended Complaint, filed in August 2024, Plaintiffs asserted seven claims: misappropriation of trade secrets under the Defend Trade Secrets Act (“DTSA”), unfair

competition, injunctive relief, breach of employment contract, breach of confidentiality agreement, breach of fiduciary duty, and conversion. See ECF No. [120] at 10–20. Plaintiffs sought punitive damages in their misappropriation, unfair competition, and breach of fiduciary duty claims. See ECF No. [120] at 10–15, 18–19. Plaintiffs also requested “damages addressing the consequences of Mostafa’s misconduct” in their misappropriation and unjust enrichment claims, see ECF No. [120] at 12–15, and damages addressing the harm to their “reputation and goodwill” in the breach of fiduciary duty claim, see ECF No. [120] at 19. Although Defendant initially contested Plaintiffs’ claims, at the pretrial conference, he “stipulated to liability on all counts of the Amended Complaint,” so the jury trial proceeded “only on the issues of whether Defendant acted willfully and whether Plaintiffs sustained any damages, including compensatory and punitive damages.” See ECF No. [268]. Following a two-day trial, the jury ultimately returned a verdict finding that Plaintiffs had sustained all four categories of damages (compensatory, nominal, exemplary, and punitive), awarding Plaintiffs $500,000 in

compensatory damages, $100 in nominal damages, $1 million in exemplary damages, and $1.6 million in punitive damages. See ECF No. [294] at 228–29; ECF No. [286]. The Court thereafter entered a Final Judgment in favor of Plaintiffs and against Defendant in the amount of $3,110,000, which was later amended solely to add clarifying language regarding the injunctive relief. See ECF No. [228]; ECF No. [327]. Plaintiffs thereafter timely filed the Motion, ECF No. [310], in which they explain that under the DTSA, a court may award attorney’s fees to a prevailing party “if the ‘trade secret was willfully and maliciously misappropriated.’” See ECF No. [310] at 3 (quoting 18 U.S.C. § 1836(b)(3)(C)). And Plaintiffs argue that they were the prevailing parties at trial as they received relief on each of their claims in the form of a permanent injunction as well as a damages award.

See ECF No. [310] at 4. Further, Plaintiffs aver that the jury’s award of punitive damages in their favor further supports the entry of an attorney’s fees award here. See ECF No. [310] at 4. Regarding the reasonableness of their fees, Plaintiffs provided the Court with the time entries for all lawyers and paralegals who worked on this matter; the Declaration of lead counsel Kevin Kaplan (“Kaplan”), which sets forth the rates for each timekeeper; the biographies of each paralegal who worked on the case; the Declaration of attorney Jacqueline Arango (“Arango”), a shareholder at Akerman LLP in her capacity as an attorney’s fees expert in which she attests to the reasonableness of the amounts, rates, and hours expended in this case; and the Declaration of Terry Jesse (“Jesse”), the Executive Director for the National Association of Legal Fee Analysis (“NALFA”), along with a survey of litigators in the Miami area, to establish the reasonableness of counsel’s rate. See ECF No. [310] at 6; ECF No. [310-1], ECF No. [310-2]; ECF No. [310-3]; ECF No. [310-4]; ECF No. [310-5]; ECF No. [310-6]. Specifically, Plaintiffs ask the Court to reconsider the rates it previously established for attorneys Kaplan and Jared Whaley (“Whaley”)

in this matter, because, at the time of the Order Awarding Rule 37 Sanctions, the Court did not have the benefit of certain information, such as a survey from NALFA supporting the current market rates in South Florida and information about the quick legal market growth in the last five years in South Florida. See ECF No. [310] at 7. In further support, Plaintiffs argued that the claims in this case involving misappropriation of trade secrets under the DTSA, unfair competition, breach of fiduciary duty, conversion, and injunctive relief were all intertwined, making it impossible to divide up their time entries on a claim-by-claim basis. See ECF No. [310] at 8-10. Finally, Plaintiffs also took the position that Defendant waived any objection to the hourly rate or reasonableness of Plaintiffs’ fees because Defendant failed to timely comply with Local Rule 7.3(a). See ECF No. [310] at 11.

In his Response, Defendant does not contest Plaintiffs’ entitlement to an award of attorney’s fees under the DTSA. See generally ECF No. [314]. Instead, Defendant first focuses on his own compliance with Local Rule 7.3(a), establishing that he timely provided his position on Plaintiffs’ claim for attorney’s fees within 21 days of receiving the draft Motion by providing legal authorities in support of his opposition, defense counsel’s Declaration containing his hourly rate, and specific objections to Plaintiffs’ time entries (mostly related to block billing). See ECF No. [314] at 1-4, 6-7.

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Pliteq, Inc., et al. v. Maged Mostafa, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pliteq-inc-et-al-v-maged-mostafa-flsd-2026.