SIS, LLC v. Stoneridge Holdings, Inc

CourtDistrict Court, N.D. Georgia
DecidedSeptember 30, 2021
Docket1:17-cv-01816
StatusUnknown

This text of SIS, LLC v. Stoneridge Holdings, Inc (SIS, LLC v. Stoneridge Holdings, Inc) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SIS, LLC v. Stoneridge Holdings, Inc, (N.D. Ga. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

SIS, LLC, Plaintiff, v. Civil Action No. 1:17-cv-01816-SDG STONERIDGE HOLDINGS, INC., ERIC NEWELL, and SCOTT BOEDIGHEIMER, Defendants.

OPINION AND ORDER This matter is before the Court, by consent of the parties, on Plaintiff SIS, LLC’s motion for attorneys’ fees and expenses [ECF 239]. Also before the Court are Defendants’ motions for judgment as a matter of law or, in the alternative, remittitur [ECF 241], and for sanctions [ECF 242], and Defendant Stoneridge Holdings, Inc.’s (Stoneridge) objection to SIS’s bill of costs [ECF 244]. After careful review of the parties’ briefing, and in consideration of the evidence presented at trial, the Court SUSTAINS Stoneridge’s objection to SIS’s bill of costs and DENIES the remaining motions. I. BACKGROUND Both SIS and Stoneridge provide services related to the sale and implementation of large scale and often business-wide Microsoft software packages. Stoneridge also provides training services related to these Microsoft software packages.1 In early 2014, SIS engaged in discussions with Stoneridge regarding an anticipated Microsoft software package implementation project with APi Group Inc. (APi), and the parties began negotiating a subcontract agreement.2 To facilitate negotiations, SIS and Stoneridge entered into a mutual confidentiality

agreement (the MCA), which prohibited a party receiving confidential information from accessing, reproducing, disclosing, or using that information unrelated to the business relationship between the parties.3

Though drafts of a subcontract agreement were exchanged between SIS and Stoneridge, a final subcontract agreement was never signed by both parties.4 Stoneridge did not agree with SIS’s final estimated hours of work for Stoneridge employees, which was considerably less than that to which Stoneridge had

originally agreed.5 Stoneridge did not respond to SIS’s final proposed contract,

1 ECF 249-2, Trial Tr. at 78:1–23. 2 ECF 249, Trial Tr. at 165:21–25; 166:1–25. 3 Pl. Trial Ex. 7. 4 ECF 249, Trial Tr. at 258:1–17. 5 Id. at 258:19–25; 249:1–2; Pl. Trial Ex. 32. sent on June 12, 2014,6 and informed SIS that it no longer intended to go forward with the subcontract on August 4, 2014.7 APi was ultimately dissatisfied with SIS’s performance and decided to end its engagement with SIS after the first phase of the project, which it was

contractually permitted to do.8 Based on a positive experience with Stoneridge’s training services, APi communicated to Stoneridge that it was interested in having it take over the project.9 On January 14, 2015, a day before a meeting with APi,

Scott Boedigheimer, Stoneridge’s then-current Vice President, forwarded two emails to Eric Newell, President of Stoneridge, and another Stoneridge employee, one containing an organizational chart outlining SIS’s “implementation plan” for the APi project10 and one listing some of SIS’s proposed prices for the APi

implementation.11 APi ultimately hired Stoneridge to take over the project.12

6 Pl. Trial Ex. 13. 7 Pl. Trial Ex. 32. 8 ECF 258, Trial Tr. at 986:2–21,1064:20–24. 9 ECF 249, Trial Tr. at 218:16–24; ECF 258, Trial Tr. at 984:16–23. 10 Pl. Trial Ex. 43. 11 Pl. Trial Ex. 57. 12 ECF 258, Trial Tr. at 1094:6–25, 1095:1–20. SIS filed its first Complaint on May 19, 2017, alleging breach of the subcontract agreement.13 SIS first amended its Complaint to add alternative claims,14 and amended it a second time to include an allegation that, in the event the subcontract agreement is unenforceable, Stoneridge breached the MCA, as

well as to add a claim for misappropriation of trade secrets.15 On May 20, 2021, four years after initiating this suit, after the Court ruled on Stoneridge’s motion for summary judgment, and after the parties had filed all pre-trial motions, SIS again

moved to amend its Complaint, this time to abandon its claim for breach of the subcontract.16 The Court permitted amendment, but only to allow SIS to remove allegations related to the subcontract agreement.17 After an eight-day trial, the jury returned a verdict in favor of SIS on its

breach of contract claim related to the MCA, against SIS on its misappropriation of trade secrets claim, and in favor of Stoneridge on its counterclaim for services

13 ECF 1. 14 ECF 24. 15 ECF 55. 16 ECF 199. 17 ECF 212 (Third Amended Complaint); ECF 213. provided.18 The jury awarded $85,000 in nominal damages to SIS and $1,700.68 in damages to Stoneridge.19 The parties agreed to submit the determination of appropriateness and amount of attorneys’ fees to the Court.20 Accordingly, SIS moved for attorneys’

fees pursuant to O.C.G.A. § 13-6-11.21 Stoneridge responded in opposition to SIS’s motion for fees,22 to which SIS replied.23 SIS also filed a bill of costs as the prevailing party,24 to which Stoneridge objects.25 Stoneridge filed two post-trial

motions, one for judgment as a matter of law or, in the alternative, remittitur,26 and one for Rule 11 sanctions.27 These motions are fully briefed.28

18 ECF 232. 19 Id. 20 ECF 259, Trial Tr. at 1172:25, 1173:1–25, 1174:1–25, 1175:1–11. 21 ECF 239. 22 ECF 248. 23 ECF 252. 24 ECF 240. 25 ECF 244. 26 ECF 241. 27 ECF 242. 28 ECF 246 (SIS’s response in opposition to Stoneridge’s motion for sanctions); ECF 247 (SIS’s response in opposition to Stoneridge’s motion for judgment as a matter of law or remittitur); ECF 253 (Stoneridge’s reply in support of its II. SIS’S MOTION FOR ATTORNEYS’ FEES AND EXPENSES SIS moves for attorneys’ fees pursuant to O.C.G.A. § 13-6-11 on the ground that Stoneridge acted in bad faith and was stubbornly litigious with respect to its claim that Stoneridge breached the MCA. SIS seeks $615,935.03 in attorneys’ fees

and other expenses.29 SIS also requests $33,750 for achieving a final judgment before this Court.30 Stoneridge responds that it could not, as a matter of law, have acted in bad faith or been stubbornly litigious and,31 even if it did, SIS’s attorneys’ fees award must be limited to the fees accrued only in furtherance of its MCA

claim.32 A. LEGAL STANDARD Pursuant to O.C.G.A. § 13-6-11, a finder of fact may award attorneys’ fees “where the plaintiff has specially pleaded and has made prayer therefor and

where the defendant has acted in bad faith, has been stubbornly litigious, or has caused the plaintiff unnecessary trouble and expense.” Recovery of attorneys’ fees

motion for sanctions); ECF 254 (Stoneridge’s reply in support of its motion for judgment as a matter of law or remittitur). 29 ECF 239, at 14. 30 Id. SIS also initially sought preemptive fees for anticipated appellate litigation but has since withdrawn that request. ECF 252, at 8. 31 ECF 248, at 7–13. 32 Id. at 13–18. and expenses under O.C.G.A. § 13-6-11 is limited to those “attributable solely to the claims on which [the plaintiff] prevailed.” Roberts v. JP Morgan Chase Bank, Nat’l Ass'n, 342 Ga. App. 73, 80 (2017). Further, “[t]he elements which will authorize an award under OCGA § 13–6–11,” bad faith, stubborn litigiousness, or unnecessary

trouble, must “relate to the conduct arising from the transaction underlying the cause of action being litigated, not conduct during the course of the litigation itself.” David G. Brown, P.E., Inc. v. Kent, 274 Ga.

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SIS, LLC v. Stoneridge Holdings, Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sis-llc-v-stoneridge-holdings-inc-gand-2021.