Carnival Prevails in Bankruptcy Proceedings in Second Trial Win of the Year Against DeCurtis

2 minute read | August.29.2023

  • Our cross-practice teams secured the second trial win this year for Carnival Corporation in litigation against DeCurtis Holdings LLC and DeCurtis LLC
  • The latest win followed a three-day bench trial in the United States Bankruptcy Court for the District of Delaware. Orrick’s IP, Litigation, and Restructuring Groups obtained a decisive victory in favor of our client Carnival against chapter 11 debtors DeCurtis Holdings LLC and DeCurtis LLC.
  • The litigation began in 2020 over DeCurtis’ misappropriation of Carnival’s proprietary information related to Carnival’s novel OceanMedallion™ guest engagement system and related patents. Carnival in March obtained a jury verdict and $21 million judgment against DeCurtis for patent infringement and breach of contract in the United States District Court for the Southern District of Florida.
  • DeCurtis then filed for chapter 11 bankruptcy in Delaware seeking to sell its assets to its prepetition lender and litigation financier “free and clear” of Carnival’s rights and claims. Carnival objected and filed an adversary proceeding for declaratory and injunctive relief, seeking to protect the company’s rights.
  • Following the trial, Bankruptcy Judge Kate Stickles ruled in favor of Carnival, finding, among other things, that DeCurtis’ software (the “DXP”) contains Carnival’s information. The judge then entered orders on Aug. 25 confirming Carnival’s ownership interests in the DXP and permanently enjoining DeCurtis from using, selling, or disclosing the DXP.

The Orrick IP litigation team was led by Steve Routh, Vann Pearce, Diana Fassbender, Robert Uriarte, Laura Najemy, and Sheryl Garko; and the restructuring team was led by Raniero D'Aversa and Michael Trentin.