Turned $5.8 Million Jury Verdict into $13.5 Million Settlement for Inventor in Dispute Brought Against La-Z-Boy for Unauthorized Use of Trade Secrets Related to Power Motion Furniture

February 28, 2017

Megdal Associates LLC v. La-Z-Boy, Inc, (S.D. Fla. 2016)

In November 2014, Megdal Associates filed a lawsuit against La-Z-Boy for breach of a 2002 technology license agreement which obligated La-Z-Boy to pay Megdal Associates royalties for the sale of products that used any aspects of Megdal Associates’ trade secrets and inventions relating to power motion furniture. A federal jury in Ft. Lauderdale found that La-Z-Boy breached the license agreement by failing to pay royalties on its new, successful power motion furniture products, and awarded Megdal $5.7 million in damages. The award was increased to $6 million with the award of prejudgment interest. While the case was pending on appeal, the parties settled the case, with La-Z-Boy paying Megdal Associates $13.5 million.

Past results are reported to provide the reader with an indication of the type of litigation we practice. They do not and should not be construed to create an expectation of result in any other case, as all cases are dependent upon their own unique fact situation and applicable law.

Ronald J. Schutz


Immediate Past Chairman
Member of Executive Board

Patrick M. Arenz


Member of Executive Board

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