Counterclaim Covered as Conducted Against Liability Defense

Ultra Coachbuilders, Inc. v. General Security Ins. Co., 229 F. Supp. 2d 284 (S.D.N.Y. 2002) (100% of recoverable defense fees with 10% interest from date of invoice) (applying California law) (The court found that prejudgment interest at 10% per annum was due from date of invoice. In awarding 100% and 10% prejudgment interest on Knobbe, Martens, Olson and Bear defense fees, he found that their rates, as well as the fees themselves, were reasonable in light of the complexity of the lawsuit and the favorable results obtained therein. See Safeguard Scientifics, Inc. v. Liberty Mut. Ins. Co., 766 F. Supp. 324, 333-34 (E.D. Pa. 1991), aff'd in part, rev'd in part on other grounds, 961 F.2d 209 (3d Cir. 1992). The prosecution of counterclaims alleging unfair competition and interference with competitive advantage were used to argue (albeit unsuccessfully) that the injunction application was not barred by the doctrine of "unclean hands"; thus they were inextricably intertwined with the defense of counterclaims and necessary to the defense of the litigation as a strategic matter. Thus, there was no reason to diminish the full amount of defense fees owed because of the asserted counterclaims.