McCarter & English Punitive Claim Sent to Connecticut High Court

McCarter & English LLP’s ability to recover $3.6 million in punitive damages in a breach of contract claim against former client Jarrow Formulas Inc. will turn on the Connecticut Supreme Court’s reading of state law.

Judge Michael P. Shea of the US District Court for the District of Connecticut asked, in a certified question to the state high court, whether a law firm can “recover common law punitive damages, i.e., litigation costs including attorneys’ fees, for its client’s willful and malicious breach of an agreement to compensate the law firm for legal services.”

“The Connecticut Supreme Court has considered whether punitive damages are available for willful and malicious breach of contract only in dicta,” Shea said in the Feb. 23 certfication order. State trial courts have split on the issue without binding precedent from the state supreme court, he said.

McCarter represented Jarrow in a trial in Kentucky that resulted in a multi-million-dollar verdict against the nutritional supplements company. Jarrow fired McCarter after the verdict and refused to pay the remaining attorney’s fees and costs that McCarter claimed it owed.

McCarter sued Jarrow for breach of contract. The jury returned a verdict of $1.06 million in compensatory damages on July 25, 2023, and also found that the breach was willful and malicious.

Ruling on post-verdict motions on Feb. 8, 2024, Shea held off on awarding punitives for now, but found that McCarter would be entitled to $3.6 million in common law punitive damages—which are limited to the plaintiff’s litigation expenses under Connecticut law—in the event the state high court determines that damages are available for willful and malicious breach of contract.

McElroy, Deutsch, Mulvaney & Carpenter LLP represents McCarter & English. Tinley, Renehan & Dost LLP; John J. Radshaw III of New Haven, Conn.; Brownstone PA; and Barton LLP represent Jarrow.

The case is McCarter & Eng. LLP v. Jarrow Formulas Inc., 2024 BL 59664, D. Conn., No. 19-cv-01124, 2/23/24.