Opinion ID: 199239
Heading Depth: 3
Heading Rank: 2

Heading: AccuSoft’s Claims of Error

Text: In the proceedings below, the master found in AccuSoft’s favor with respect to a number of its allegations of contemptuous conduct by Snowbound. In particular, the master found that several widely-disseminated statements by Snowbound violated the requirements of Paragraph 13 of the settlement agreement. These included statements issued almost immediately after the litigation, asserting that Snowbound had “won” the litigation and had “accomplished what it wanted” in the settlement agreement. Snowbound also was found to have violated the settlement agreement by using the words “AccuSoft” and “Image Format Library” in its advertisements, by revealing confidential terms of the settlement agreement to clients, and by failing to delete references to “Accu” or “AccuSoft” in products it distributed after the settlement agreement was signed. However, the master ultimately rejected the relief sought by AccuSoft with respect to these breaches of the agreement. The master declined AccuSoft’s request that it be excused from performance of its obligations under the agreement (principally payment of royalties) from the date of Snowbound’s breach. The master also found that AccuSoft had failed to introduce evidence linking the proven breaches of the agreement -52- with any damages it had suffered. On appeal AccuSoft challenges these conclusions, as well as rulings by the master limiting the scope of discovery with respect to damages. AccuSoft also argues that the master should have separately found Snowbound in contempt for licensing the IFL under that name, as opposed to under its own brand name, RasterMaster.
Settlement Agreement/Relief from Judgment In its initial motion for contempt, AccuSoft requested that it: be excused from making any and all further payments to Defendants . . . as a result of their wilful and deliberate breach of the bargained for exchange of payments for confidentiality and protection of AccuSoft’s goodwill embodied in the Settlement Agreement. In an amended motion, submitted in September 1996, AccuSoft reframed this argument more broadly as a request for relief from judgment pursuant to Fed. R. Civ. P. 60(b)(6) and for rescission of the settlement agreement in its entirety. Citing our decision in United States v. Baus, 834 F.2d 1114 (1st Cir. 1981), AccuSoft argued that Snowbound’s contempt justified the master in “relieving AccuSoft of the terms of the Judgment and Settlement Agreement.” AccuSoft's rescission request, fleshed out in a “post-trial” brief submitted at the close of the hearings before the master, sought an order that would “rescind -53- the Settlement Agreement and require the parties to return all consideration received, thereby returning them to the status quo that existed prior to the entry of the Settlement Agreement.” As grounds for both forms of relief, AccuSoft argued that: (1) Snowbound had failed to honor “material and essential” terms of the settlement agreement; (2) AccuSoft's actual damages were “difficult or impossible to determine”; and (3) there was “no meeting of the minds and therefore no valid contract.” In his memorandum, the master rejected AccuSoft's claim for relief on two grounds. First, noting AccuSoft's delay in asserting its rescission claim until after the settlement agreement's August 31, 1996 cutoff had passed, the master found that AccuSoft's conduct constituted an election to continue to operate under the contract, thus precluding rescission. CanadaAtlantic & Plant S.S. Co., Ltd. v. Flanders, 165 F. 321, 323 (1st Cir. 1908). Furthermore, even if AccuSoft had not waived its right to such relief, the master found that Snowbound’s breaches of the settlement agreement were not “sufficiently material” to justify rescission of the contract or to excuse AccuSoft from its obligation to perform. Although the master acknowledged that the confidentiality provisions of the settlement agreement were “important” to the parties, the master held that they did not constitute an “essential and inducing -54- feature of the contract.” Lease-It, Inc. v. Mass. Port Auth., 600 N.E.2d 599, 602 (Mass. App. Ct. 1992) (discussing the standard of materiality for excusing a non-breaching party from performance). To the contrary, he concluded, “the most important features of the Settlement Agreement were those which permitted the parties to continue in business by releasing their claims to the other's software.” On appeal, AccuSoft's principal claim of error concerns the master's conclusion that Snowbound's breaches of the settlement agreement were not material. Accusoft contends that the master failed to appreciate that the confidentiality provisions were essential to the agreement because, in the small market the parties were competing in, revelations concerning the outcome of the litigation could severely impair AccuSoft's ability to continue to do business and to transition its current customers to the ImageGear software. In fact, AccuSoft argued, those provisions were the most important to AccuSoft because they protected its goodwill. Notably, and without explanation, AccuSoft does not address the master's alternative holding that AccuSoft is barred from relief by an implicit election to continue under the contract. As we proceed to the merits of AccuSoft's appeal on this issue, we first address the fact that, on appeal, AccuSoft -55- once again appears to recast the nature of the relief it seeks. AccuSoft's most recent complaint, as well as its argument before the master (and, subsequently, before Judge Gorton), asked for complete rescission of the settlement agreement and, by implication, complete relief from judgment pursuant to Rule 60(b)(6). In the briefs submitted to this court, however, AccuSoft reverts to the version of this count contained in the initial complaint, asking simply to be excused from paying royalties from the date that Snowbound first breached the agreement by announcing that it had “won” the litigation.21 AccuSoft also fails to press any specific argument for relief based on Rule 60(b)(6), although it could be concluded that AccuSoft's continuing references to our decision in Baus are intended to do so by implication. The significance of this shift in tactics is unclear. Arguably, although Snowbound has not so contended, AccuSoft's request on appeal for a more limited remedy is subject to dismissal because it was not properly raised in the forum below. However, Massachusetts caselaw is not entirely clear on whether the line of precedent excusing a party from performance based on another party's breach may be viewed as deriving from the same 21 Indeed, in its reply brief in this Court, AccuSoft states baldly it is “not seeking to rescind the Settlement Agreement.” -56- source as the precedent regarding rescission. See Lease-It, Inc., 600 N.E.2d at 601-02 (discussing the right to cease performance while referencing authority concerning rescission). If Massachusetts law would treat the difference as going to the extent, rather than the nature, of the relief, AccuSoft could be found to have adequately preserved its position. Because it does not affect the result we reach, we accept arguendo that the relief requested on appeal is properly before us and, furthermore, that an argument under Rule 60(b)(6) is also properly preserved. Turning to the substance of AccuSoft's appeal, we affirm the master's conclusion on the ground that AccuSoft, by electing to continue accepting benefits under the agreement, has lost any right it may have had to be excused from performance as a result of Snowbound's contempt.22 It is well established that conduct indicating a willingness to continue to honor a contract, despite knowledge that the other party has failed to perform, “operates as a promise to perform in spite of that non- 22 In so holding, we specifically do not decide whether the master was right to conclude that Snowbound's violations of the settlement agreement were not “sufficiently material” to justify rescission or to excuse AccuSoft from its duty to perform. Indeed, we find significant merit in AccuSoft's contention that the confidentiality requirements and related provisions related to publicity were critical components of the settlement agreement from AccuSoft's perspective. -57- occurrence.” Restatement (Second) of Contracts, § 246; see also Flanders, 165 F. at 321 (1st Cir. 1908) (holding that a breach by one party gives the other the right of election to continue under the contract or to sue for rescission); accord Apex Pool Equip. Corp. v. Lee, 419 F.2d 556, 561 (2d Cir. 1969) (“[T]he power to terminate a continuing contract because of a particular breach of that contract is a power of election.”). Here, AccuSoft plainly knew of Snowbound's breaches of the agreement within a short time of when they occurred, and, indeed, soon filed its first motion for contempt. Yet AccuSoft continued to accept the benefits of the settlement agreement and to act as if it were still in effect. It was not until several months later -- after August 31, 1996 -- that AccuSoft filed an amended pleading that made clear it sought rescission of the entire agreement. In the interim, AccuSoft availed itself of the ability to license the IFL in return for royalty payments, as well as the ability to sell ImageGear free from infringement claims. Indeed, by the time AccuSoft asserted its rescission claim, it had obtained all the benefits from the settlement agreement that it could. Under the circumstances, we agree with the master that AccuSoft was not entitled to cancel -- largely -58- retroactively -- its obligation to pay royalties.23 We therefore affirm the master's conclusion.
Adequate Evidence of Damages In addition to rejecting AccuSoft's rescission claim, the master rejected AccuSoft's contention that it was entitled to be compensated for Snowbound's contempt with money damages. The master acknowledged that AccuSoft had introduced evidence showing that many of its customers from 1995 did not continue as customers in 1996 or later, and that many of those same customers had become customers of Snowbound. The master also conceded that Accusoft had not reached its projected levels of growth in 1996 and beyond. However, the master found that AccuSoft had failed to introduce “any evidence that these events occurred because Snowbound breached the Settlement Agreement” (emphasis added). To the contrary, the master noted that the testimony suggested a number of reasons, unrelated to the alleged breaches 23 We acknowledge that nothing in our limited precedent concerning the circumstances under which relief from judgment pursuant to Rule 60(b)(6) will be granted specifically incorporates a parallel principle that a party may “elect” to accept non-performance of a settlement agreement, nor do we intend to establish such a general principle here. However, we do find that, on the facts presented here, AccuSoft has not presented any “reason justifying relief from the operation of judgment.” -59- of the agreement, that could explain these occurrences. It was apparent that many of AccuSoft's customers knew of the legal dispute between AccuSoft and the founders of Snowbound, and that some number also understood that the disputes concerned rights to the code contained in the IFL. AccuSoft's operations were also disrupted by the injunction entered by the court shortly before the infringement trial was to begin. Finally, AccuSoft faced, beginning in early 1996, a new and combative competitor (Snowbound), aggressively courting the same customers in a small niche market, and at a time when AccuSoft was having difficulty completing and marketing its own new product. On appeal, AccuSoft argues first that the master applied the “wrong legal standard” in determining the sufficiency of AccuSoft's evidence of damages. Specifically, AccuSoft contends that the master ignored precedent indicating that damages can be recovered even where the amount of damages suffered cannot be calculated with certainty. See, e.g., Nat'l Merchandising Corp. v. Leyden, 348 N.E.2d 771, 774 (Mass. 1976) (noting, with respect to a claim for damages for interference with contractual relations, that “an element of uncertainty in the assessment of damages is not a bar to their recovery”). While the cases AccuSoft cites appear to be good law, AccuSoft's argument ultimately is irrelevant to the issue on appeal. We do -60- not read the master's conclusion to be that AccuSoft inadequately identified the amount of damages, but rather that AccuSoft could not demonstrate that any damages suffered were caused by breaches of the settlement agreement. Such proof of a causal nexus between Snowbound's breaches and the damages AccuSoft suffered is clearly required by Paragraph 16 of the settlement agreement 24 as well as by settled precedent. See Burke v. Guiney, 700 F.2d 767, 770 (1st Cir. 1983) (“In addition to presenting clear and convincing evidence that a court order has been violated, a party seeking monetary damages in civil contempt . . . must show that he has suffered damage as a result of the violation”) (emphasis added); see also In re Kave, 760 F.2d 343, 351 (1st Cir. 1985) (explaining that compensatory damages for contempt are intended to “make whole the aggrieved party for damages caused by the contemnor's conduct”) (emphasis added); Town of Manchester v. Dept. of Envtl. Quality Eng'g, 409 N.E.2d 176, 182 (Mass. 1980) (“Where a fine is imposed in a civil contempt proceeding it must not exceed the actual loss to the complainant caused by the contemnor's violation of the order . . . .”) (emphasis added). 24 The relevant portion of Paragraph 16 states that “[i]f any party should breach any term of this Agreement, the other party will be entitled . . . to an award of its actual damages sustained by reason of such breach . . .” (emphasis added). -61- In the alternative, AccuSoft argues that it did offer evidence demonstrating that it suffered damages as a result of Snowbound's violations of the settlement agreement. However, based on the record evidence AccuSoft identifies in its motion papers, we are not persuaded to reverse the master's conclusion to the contrary. As we have previously stated, in evaluating a challenge to the award of damages, “we rely heavily on the judgment of the trial court, who has had the benefit of hearing all of the evidence.” Clark v. Taylor, 710 F.2d 4, 13 (1st Cir. 1983). The evidence AccuSoft points to, at best, demonstrates that Snowbound made statements to current customers of AccuSoft, regarding the IFL, that violated the settlement agreement; that Snowbound was aware when doing so that such statements could affect AccuSoft's ability to sell the IFL to its customers; and that some of those customers later became customers of Snowbound. Nothing AccuSoft identifies in the record moves beyond mere circumstantial evidence to directly connect Snowbound's actions with specific lost customers. While such circumstantial evidence of causation may, in certain instances, be adequate, AccuSoft has given us no reason to believe that the master erred in concluding otherwise in this case. As a final argument on this point, AccuSoft contends that the master committed reversible error by limiting discovery -62- with respect to damages. AccuSoft states that discovery was limited to communications between Snowbound and former AccuSoft customers. AccuSoft was not allowed to investigate what statements were made to other Snowbound customers who may have considered purchasing AccuSoft's product but were unduly influenced by the improper communications. AccuSoft also argues that it should have been allowed to investigate Snowbound's financial condition. With this information, AccuSoft contends, it could have developed the necessary evidence concerning its damages. The master, in his memorandum, noted that AccuSoft had failed, on the basis of the discovery it was allowed, to produce any evidence that would lead him to believe that further discovery was justified. AccuSoft was not able to point to any of its own communications with customers suggesting that they had information relevant to whether Snowbound's conduct caused AccuSoft's damages. Nor had the limited discovery of customers who had switched from AccuSoft to Snowbound suggested that such information would be revealed through additional discovery. The master acknowledged that, given the “substantial difficulties in getting third-parties to permit themselves to become involved in this kind of dispute,” it was not fair to “infer that such information would not be helpful to Accusoft.” On the other -63- hand, he concluded that he could not simply “assume . . . that AccuSoft's loss of revenues or Snowbound's receipt of revenues are the result of the improper conduct by Snowbound” (emphasis in original). Here too, precedent suggests a highly deferential standard of review. During the performance of his duties, a master is “functionally indistinguishable from . . . a trial judge.” Jenkins v. Sterlacci, 849 F.2d 627, 634 (D.C. Cir. 1988). Trial judges “enjoy broad discretion in the handling of interstitial matters, such as the management of pretrial discovery.” FDIC v. Ogden Corp., 202 F.3d 454, 460 (1st Cir. 2000). While such decisions are not immune from review, they will only be reversed “upon a clear showing of manifest injustice, that is, where the lower court's discovery order was plainly wrong and resulted in substantial prejudice to the aggrieved party.” Id. AccuSoft has identified no facts or precedent that convince us that the master was “plainly wrong” in limiting discovery as he did. To the contrary, it appears to us that the master's decision to disallow further discovery was firmly grounded in his factual findings, which AccuSoft does not meaningfully dispute. We therefore affirm. -64- c. Finding that Settlement Agreement Transferred “Ownership” of the IFL to Snowbound In the proceedings below, AccuSoft alleged, and the master found, that Snowbound had offered to sell or renew licenses for the IFL and, in at least a few instances, actually sold or renewed such licenses. AccuSoft argued that this violated the settlement agreement because, although the agreement transferred to Palo AccuSoft's rights in the underlying code, it did not transfer any rights in the product named the Image Format Library. The master rejected AccuSoft's contention, noting that, in his view, the settlement agreement should be interpreted as transferring “all of AccuSoft's interest in the IFL” to Palo. He also indicated that the lack of clarity in the settlement agreement concerning the interest that was transferred to Palo precluded finding of contempt in any event. On appeal, AccuSoft renews its argument that the master erroneously interpreted the agreement and that only ownership of the underlying code was transferred to Snowbound. AccuSoft notes that the language of the Assignment of Copyright, which states that AccuSoft will transfer “all of its right, title, and interest in and to all computer programs or other software that have at any time to date been sold under the name 'AccuSoft Image Format Library,'” does not expressly transfer ownership of -65- the IFL name, or any IFL documentation, or customer contacts or goodwill associated with the IFL. AccuSoft also points out that the settlement agreement strictly limits what Snowbound could say concerning ownership of the IFL, and specifically prohibits Snowbound from “trading in any manner upon the goodwill attached to the name 'AccuSoft.'” Finally, AccuSoft identifies record evidence suggesting that Palo and Wieczner were not particularly concerned with gaining the ability to sell the IFL code qua IFL (rather than under the name RasterMaster) when they were negotiating the settlement agreement. As a matter of contractual interpretation, we find significant merit in AccuSoft's argument. We do not read the agreement to unambiguously transfer to Palo ownership of the IFL product, as opposed to its underlying code. Further, we find that AccuSoft makes a compelling case that other provisions -- such as those concerning publicity and the protection of AccuSoft's goodwill -- suggest that the parties did not intend that Snowbound would license the IFL. In this context we note that the settlement agreement's express statement that Snowbound could publicize its ability to “support” the IFL after August 31, 1996, may also be read to imply that Snowbound could not publicize its ability to take other actions with respect to the IFL. These provisions, taken together, lead us to believe that -66- Snowbound was not authorized by the settlement agreement to sell the product under the IFL name. We are less certain that AccuSoft has advanced compelling grounds to reverse the master's conclusion that Snowbound's actions did not constitute civil contempt. First, as the master's opinion makes clear, the language of the settlement agreement is not unambiguous on this issue. While we feel that the better reading favors AccuSoft's position, we do not believe that the interpretation argued by Snowbound and adopted by the master is entirely without foundation. The lack of a clear directive counsels against a finding of contempt. See, e.g., Project B.A.S.I.C., 947 F.2d at 16. In addition, we have some doubt whether, from a substantive point of view, anything turns on the prohibition AccuSoft would impose. It seems evident that the settlement agreement would, at least after August 31, 1996, allow Snowbound to tell customers who inquired that it was supporting the IFL and also selling the RasterMaster product, which used the same code as the IFL. We note also that the master found -- and we have affirmed -- that it was permissible to state, after August 31, 1996, that no one was actually selling the IFL anymore. Given Snowbound's evident ability to license the IFL code, to state that such code was formerly contained in the IFL but now -67- contained in RasterMaster, and to indicate that the IFL qua IFL was no longer available, Snowbound could only be found to have breached the agreement to the extent that licensing the IFL without such explanation improperly traded on goodwill associated with that name. In this context, it is noteworthy that the master already considered, and found contemptuous, Snowbound's use of the term IFL in advertisements and Snowbound's use of references to “AccuSoft” or “Accu” in products it sold, but found no damages associated with these breaches.25 Although the above suggests to us that AccuSoft may have difficulty proving contempt, or proving that any damages resulted from such contempt, we believe a remand is necessary to determine whether the factual record may support such a finding if the interpretation of the settlement agreement set out above is applied. As but one reason for so doing, we note that it is not at all clear, from the record evidence identified by the parties, when Snowbound licensed the IFL. With the record before us, we cannot conclusively resolve this issue and therefore leave it to the district court to determine. 25 We also consider it significant that the settlement agreement expressly did not seek to regulate the parties' oral statements, further limiting the conduct surrounding the sales of IFL that could be considered grounds for a finding of contempt. -68- C. Attorneys' Fees and Related Costs; Costs of Audit Finally, the parties appeal aspects of the master's rulings with respect to costs of the master's audit and the award of attorneys' fees and related litigation costs. 1. Costs of Audit In its motion papers, AccuSoft argues that, if its appeals concerning the royalties owed to Snowbound are successful, the award of audit costs to Snowbound may need to be revisited. In charging the entirety of the audit to AccuSoft in his decision below, the master relied on Paragraph 6 of the settlement agreement which states, in relation to the audit, that: If the audit discloses that any amount due was underreported or underpaid by more than 5%, AccuSoft will reimburse Palo for one- half of the cost of the audit. If the audit discloses that any amount due was underreported by more than 10%, AccuSoft will reimburse Palo for the entire cost of the audit. Because we hold that the master's award of the Lifeboat revenues to Snowbound must be vacated -- an award which constituted the majority of the amount unpaid by AccuSoft – this calculation may indeed change on remand. We therefore direct the court below to review this question again after the remanded issues are resolved. 2. Attorneys' Fees and Related Costs -69- Paragraph 16 of the settlement agreement provides, in relevant part, that: If any party should breach any term of this Agreement, the other party will be entitled to move for contempt of the Order, to an award of its actual damages sustained by reason of such breach, and to recover its reasonable attorneys' fees and costs incurred in such proceedings . . . . In his memorandum, the master concluded that the phrase “in such proceedings” must be read as limited to that process in which a party “move[s] for contempt of the Order” to remedy the other party's breach, and, therefore, that the provision only allowed for recovery by a plaintiff in a contempt action. He also found that, by its terms, the provision required that a breach of the agreement be proved before fees could be awarded. However, the master found nothing in the language to limit a party who alleged multiple counts of contempt to obtaining attorneys' fees associated with its “successful” contempt claims. Nor did he view the language as requiring the party to meet the definition of a “prevailing party” as it is used in statutory fee-shifting provisions; a definition which typically requires that some damages be proven. Cf. PH Group, Ltd. v. Birch, 985 F.2d 649, 652 (1st Cir. 1993) (citing to cases indicating that the award of zero or merely nominal damages may not convey prevailingparty status). -70- Based on this interpretation, the master found that AccuSoft was entitled to recover the reasonable fees it incurred in prosecuting its motion for contempt against Snowbound. In calculating the fees, the master employed the lodestar time and rate analysis. See Tennessee Gas Pipeline Co. v. 104 Acres of Land, 32 F.3d 632, 634 (1st Cir. 1994) (noting our preference for the lodestar time and rate method “if an alternative method is not expressly dictated by applicable law”). Following several rounds of submissions from AccuSoft, the master determined that $135,102 in attorneys' fees and $14,143 in related costs (travel costs, constable fees, etc.) were properly attributable to AccuSoft's prosecution of its contempt action and thus recoverable. Because the master found that Snowbound had not succeeded in proving that AccuSoft was in contempt of any aspect of the settlement agreement, Snowbound was awarded no fees. On appeal, both parties challenge the master's interpretation of the settlement agreement language. AccuSoft argues that it should be allowed to recover the entirety of its attorneys' fees and costs, including those expended in successfully defending itself against Snowbound's contempt allegations. Snowbound, in turn, argues that AccuSoft is entitled to recover none of its fees and costs, because, in -71- determining the “reasonableness” of the fee award, the master should have considered AccuSoft's failure to obtain any of the relief it sought. Snowbound also argues that, because the master should have found AccuSoft to have breached the agreement, Snowbound should have received an award of attorneys' fees. We see no reason to disturb the master's conclusion that, under the terms of the settlement agreement, a party may recover fees for prosecuting a contempt action but may not recover fees incurred in defending against a claim of contempt. The language of the settlement agreement supports this interpretation and AccuSoft has provided no precedent or extrinsic evidence that casts any doubt on its correctness. On the other hand, we find merit in Snowbound's contention that the master should have given consideration to AccuSoft's success (or lack thereof) in determining the amount of fees it could recover. In doing so we acknowledge that, when a contractual fee provision is included by the parties, the question of what fees are owed “is ultimately one of contract interpretation,” and our primary obligation is simply to honor the agreement struck by the parties. MIF Realty, L.P. v. Fineberg, 989 F. Supp. 400, 402 (D. Mass. 1998); see also United States v. Western States -72- Mech. Contractors, Inc., 834 F.2d 1533, 1548 (10th Cir. 1987) (noting that “where contracting parties have agreed that a breaching party will be liable for attorneys' fees, the purpose of the award [of such fees] is to give the parties the benefit of that bargain, and the court's responsibility is to enforce that bargain”). We are also aware of precedent suggesting that the court's discretion in awarding fees is more limited where the parties have specifically agreed that fees will be paid under certain circumstances. See Cable Marine v. M/V Trust, 632 F.2d 1344, 1345 (5th Cir. 1980) (“Where attorney's fees are provided by contract, a trial court does not possess the same degree of equitable discretion to deny such fees as it has applying a statute providing for a discretionary award.”); Western States, 834 F.2d at 1548 (“Normally, where the court is merely enforcing a contractual provision authorizing attorney's fees, the fees are routinely awarded . . . .”). Nonetheless, we find nothing in precedent to suggest that the master could properly exclude consideration of AccuSoft's overall success as a factor in determining the appropriateness of its fee award. To the contrary, Massachusetts law suggests that success is a factor that must be considered when fixing the fees to be awarded pursuant to a contractual provision. In First Nat'l Bank of Boston v. Brink, -73- 361 N.E.2d 406, 410-11 (Mass. 1977), for example, the Supreme Judicial Court of Massachusetts specifically approved the trial court's application, in determining a fee award pursuant to a contractual provision, of the factors set forth in Cummings v. Nat'l Shawmut Bank, 188 N.E. 489, 492 (Mass. 1934). These factors include “the ability and reputation of the attorney, the demand for his services by others, the amount and importance of the matter involved, the time spent, the prices usually charged for similar services by other attorneys in the same neighborhood, the amount of money or the value of the property affected by controversy, and the results secured.” Cummings, 188 N.E. at 492 (emphasis added). Other opinions applying Massachusetts law appear to reach a similar result. See, e.g., Northern Heel, 951 F.2d at 476-77 (discussing application of Cummings factors in determining reasonableness of fees awarded under contractual provision); MIF Realty, 989 F. Supp. at 402 (same); Taupa Lithuanian Fed. Credit Union v. Bajercius, 1997 Mass. App. Div. 31, 32 (same). Furthermore, even where courts have adopted a comparatively narrow view of their discretion where contractual provisions are concerned, they have recognized the ability to “adjust or even deny a contractual award of fees if such an award would be inequitable or unreasonable.” Western States, 834 F.2d at 1548. This standard has been employed to -74- deny the award of fees pursuant to contract when the party has met with scant success in its action. See Rent It Co. v. Aetna Cas. & Sur. Co., 988 F.2d 88, 91 (10th Cir. 1993) (holding that the lower court acted within its discretion in denying as “inequitable and unreasonable” any award of fees “[g]iven the more than eight-to-one ratio of damages sought to damages recovered”). In light of this, we believe that the contractual provision at issue here is appropriately interpreted to require consideration of all relevant factors, including the results obtained by the parties, in determining the reasonableness of the fees requested. On remand, the district court, or the master, if the order of reference is renewed, should include these considerations in determining whether the fee awards are appropriate in light of the reasoning set forth in this opinion and the proceedings on remand. We realize that, as the master noted below, it may not be possible or appropriate to distinguish the fees associated with successful and unsuccessful claims. We also do not mean to suggest that AccuSoft’s failure to obtain damages or other requested relief is necessarily fatal to its claim for attorneys' fees. Ultimately, the determination of what fees are properly awarded under this standard lies within the sound discretion of the finder of fact. -75- As a final point, we note that AccuSoft has requested that it be awarded its fees for these appeals pursuant to Paragraph 16 of the settlement agreement. Whether, or under what circumstances, fees should be awarded for appellate advocacy pursuant to a contractual agreement “is one largely of judicial discretion, since the provision or stipulations involved usually do not contain explicit reference to fees on appeal.” Robert L. Rossi, Attorney's Fees 492 (1995). Because the question of attorneys' fees will be revisited on remand in any event, and should properly be evaluated in light of the district court's final conclusions on remand regarding aspects of the substantive relief awarded the parties, we instruct AccuSoft and Snowbound to make their case for the fees associated with these appeals at that time. -76-