Bloomfield Investment Denied $5.2 Million Attorneys’ Fees Ask

Bloomfield Investment Resources Corp. lost its bid for nearly $5.2 million in attorneys’ fees even though it showed its opponent’s defenses were meritless based on overwhelming evidence.

Bloomfield prevailed in a fraud suit alleging the operator of two investment funds never repaid a $25 million loan. But it didn’t show it qualified for the bad faith exception to the “American Rule” against attorneys’ fees, the US District Court for the Southern District of New York said Wednesday.

The court said that though Bloomfield satisfied the first element for the exception, showing the losing party’s claims are “entirely without color,” it ...