In a court battle between Aya Healthcare and AMN Healthcare Services Inc., a San Diego judge awarded Aya $168,967 in attorneys fees. AMN is filing an appeal in the lawsuit.

The suit was first filed in 2015 in San Diego County when AMN sued four of its former recruiters who went to join Aya. In addition, Aya was included in the lawsuit where AMN claimed the recruiters breached their nonsolicitation agreements and misappropriated trade secrets.

It was ruled on Jan. 26 that AMN’s confidential nondisclosure agreement was unenforceable under California law, according to court records. The court also prohibited AMN from enforcing employment agreements in California that restrict former employees from soliciting other employees of AMN.

“AMN filed a lawsuit against Aya Healthcare for misappropriation of proprietary information relating to AMN’s clinicians,” according to a statement from AMN. “Unfortunately, AMN received an unfavorable ruling in this case, which we believe is contrary to law. Our responsibilities to our healthcare clients, clinicians, and team members are paramount, and we will continue our efforts to protect this information. Accordingly, we have filed an appeal of the decision.”

The court awarded attorney fees because the “bad faith standard” has been met in this case, according to court records.

“The declaration of [Aya CEO Alan] Braynin, which has not been adequately refuted, indicated that prior to the litigation AMN engaged in ‘strong arm’ tactics, including a demand that Aya enter into a mutual no-hire agreement (of specious legal basis),” according to the court. “Further, the court also considers the delay in identifying misappropriation in this litigation. The conduct by AMN supports the inference that AMN was bringing this litigation to intimidate its competitor in a this very competitive nurse recruiting business.”

Earlier this year, Aya also filed a separate federal lawsuit against AMN alleging anti-competitive behaviors.

“In response to AMN’s lawsuit to protect confidential and proprietary information, Aya Healthcare filed a separate lawsuit against AMN alleging anti-competitive conduct,” AMN said in a statement. “We believe Aya’s claims are disingenuous, and a retaliatory act by a competitor. We are confident that our practices and policies will be upheld by the courts.”