Jul 252011
 

Last week, the National Law Journal reported that MGA Entertainment has agreed to discovery master Robert O’Brien’s recommendation that it be awarded $108 million in attorney’s fees and costs in its litigation against Mattel. O’Brien’s report, which was issued on June 20th, recommended that MGA collect $84 million for defending against Mattel’s copyright claims and $23 million for prosecuting its trade secret claims against Mattel.

In April, a jury rejected Mattel’s copyright infringement claims and awarded MGA $88.4 million in damages.   The jury also concluded that Mattel stole MGA’s trade secrets. In May, MGA filed a motion for attorney’s fees and costs seeking more than $162 million.

Following O’Brien’s report, MGA decided to withdraw its initial request. Although MGA alleges that it spent significantly more in attorney’s fees and expenses, it agreed to accept $108 million, describing it as “fair and reasonable.”  Mattel has objected to the recommendation, arguing that it should be given an opportunity to review the billing records submitted by MGA.

According to the National Law Journal, unsealed documents include invoices billed to MGA from Skadden Arps, O’Melveny & Meyers, Orrick Herrington, and Keller Rackauckas totaling more than $26 million in fees, plus costs. Additionally, MGA submitted invoices amounting to hundreds of thousands of dollars in vendor and hotel expenses in connection with the trials.