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569 F. App'x 527
9th Cir.
2014
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Background

  • Appellant appeals district court's award of attorneys' fees and non-taxable costs totaling $933,795.56 to Appellees after summary judgment in a Lanham Act action.
  • This court has jurisdiction and affirms the award.
  • Under the Lanham Act, a prevailing party may be awarded reasonable attorney's fees in exceptional cases.
  • The court reviews de novo whether an action is exceptional; once exceptional, fee awards are reviewed for abuse of discretion.
  • The court held Appellant presented no legitimate evidence of Lanham Act violations; the case is exceptional, thus the fee award is reviewable for abuse of discretion and affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the case is exceptional under the Lanham Act Appellant argues exceptional status requires bad faith or legitimate evidence exists. Appellees contend the case is exceptional based on lack of legitimate evidence and overall failure of proof. The case is exceptional as a matter of law.
Whether the district court abused its discretion in awarding fees after finding exceptionality Appellant challenges the fee award as an abuse of discretion. Appellees maintain the award was proper and unchallenged, within discretion. No abuse of discretion; award affirmed.

Key Cases Cited

  • Cairns v. Franklin Mint Co., 292 F.3d 1139 (9th Cir. 2002) (exceptional case standard for Lanham Act fees; requires no bad faith)
  • Avery Dennison Corp. v. Sumpton, 189 F.3d 868 (9th Cir. 1999) (early articulation of exceptional standard)
  • Love v. Associated Newspapers, Ltd., 611 F.3d 601 (9th Cir. 2010) (affirming exceptional determination where evidence lacked substantiation)
  • Secalt S.A. v. Wuxi Shenxi Constr. Mach. Co., 668 F.3d 677 (9th Cir. 2012) (deference in reviewing fee awards after exceptional finding)
  • Coastal Abstract Serv., Inc. v. First American Title Ins. Co., 173 F.3d 725 (9th Cir. 1999) (dissemination standard for Lanham Act claims)
  • Rabkin v. Oregon Health Scis. Univ., 350 F.3d 967 (9th Cir. 2003) (standard for abuse of discretion review of fee awards)
  • International Jensen, Inc. v. Metrosound U.S.A., Inc., 4 F.3d 819 (9th Cir. 1993) (clarifies standard related to appellate review of damages/fees)
  • McCollough v. Johnson, Rodenburg & Lauinger, LLC, 637 F.3d 939 (9th Cir. 2011) (abuse of discretion standard in appellate review of district court decisions)
  • Boyd v. City & Cnty. of S.F., 576 F.3d 938 (9th Cir. 2009) (framework for evaluating reasonableness of district court rulings)
  • Klestadt & Winters, LLP v. Cangelosi, 672 F.3d 809 (9th Cir. 2012) (binding precedent cited regarding exceptionality without requiring bad faith)
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Case Details

Case Name: Emove, Inc. v. SMD Software Inc.
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Apr 15, 2014
Citations: 569 F. App'x 527; 12-17487
Docket Number: 12-17487
Court Abbreviation: 9th Cir.
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