Foley Prevails Before 11th Circuit on Behalf of Kids2, Inc.

The 11^th U.S. Circuit Court of Appeals ruled in favor of Foley client Kids2, Inc., an Atlanta-based toy and baby product manufacturer, following a trial victory for Kids2 in 2019 in a royalty agreement dispute.

In 2016 Kids2 sought a declaratory judgment against XRT, Inc. and David E. Silverglate concerning royalty rates under the Agreement.  After XRT filed a counterclaim for $100 million July of 2016, Kids II replaced its existing counsel with Foley & Lardner.

In February of 2018, Foley secured summary judgment eliminating the large damages claim.  The dispute proceeded to trial in March of 2019 on classification of 57 disputed products, resulting in a jury verdict for Kids2 on 90% of them.  Foley then sought to recover attorneys’ fees under the contract, which the district court denied. 

On January 8, 2020, The Eleventh Circuit reversed finding that Kids2 was the “prevailing party” entitled to an award of all of its attorneys’ fees and costs, finding that Kids2 “predominated” by prevailing at trial and at summary judgment before trial.  

The case is Got I, LLC and Kids2, Inc. v XRT, Inc. and David Eugene Silverglate No. 19-12595. 

Boston Partner Matthew Lowrie led the Foley team, which included Senior Counsels Ruben Rodrigues and Lucas Silva and Associate Sarah Rieger.