Fleischmann Distilling Corp. v. Maier Brewing Co.

386 U.S. 714, 87 S. Ct. 1404, 18 L. Ed. 2d 475, 1967 U.S. LEXIS 2853, 153 U.S.P.Q. (BNA) 432
CourtSupreme Court of the United States
DecidedMay 8, 1967
Docket214
StatusPublished
Cited by766 cases

This text of 386 U.S. 714 (Fleischmann Distilling Corp. v. Maier Brewing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleischmann Distilling Corp. v. Maier Brewing Co., 386 U.S. 714, 87 S. Ct. 1404, 18 L. Ed. 2d 475, 1967 U.S. LEXIS 2853, 153 U.S.P.Q. (BNA) 432 (1967).

Opinions

Mr. Chief Justice Warren

delivered the opinion of the Court.

This is a trademark case arising under the Lanham Act (60 Stat. 427, 15 U. S. C. §§ 1051-1127) in which our sole concern is with the relief that may be granted when deliberate infringement of a valid trademark has been established. The question is whether federal courts have power in that context to award reasonable attorney’s fees as a separate element of recovery in light of § 35 of [715]*715the Act which enumerates the available compefisatory remedies.1

The scope of petitioners’2 trademark and the fact of respondents’3 infringement were determined by the Court of- Appeals for the Ninth Circuit at an earlier stage of this litigation. 314 F. 2d 149, cert. denied, 374 U. S. 830 (1963). The case was then remanded to the District Court for the Southern District of California which, after noting that the Court. of Appeals had characterized respondents’ infringing activities as deliberate, entered its own finding to that effect. In accord with prior rulings of certain courts of appeals4 and district [716]*716courts5 that attorney’s fees could be recovered if deliberate or willful infringement were established, the District Court awarded petitioners $60,000 after determining that such sum constituted reasonable attorney’s fees for prosecution of this litigation. Respondents sought an immediate interlocutory appeal although petitioners’ rights to an accounting and other relief remained for determination. The Court of Appeals first dismissed the appeal as premature, but after the District Court issued a certificate under 28 U. S. C. § 1292 (b)6 authorization was granted. Sifting en banc the Court of Appeals reversed the award of attorney’s fees, holding that under the Lanham Act federal courts are without power to make such awards. 359 F. 2d 156 (1966). We granted cer-tiorari to resolve the conflict between that holding and the prior decisions of federal courts upon which the [717]*717District Court had relied. 385 U. S. 809 (1966). For the reasons elaborated below, we affirm.

As early as 1278, the courts of England were authorized to award counsel fees to successful plaintiffs in litigation.7 Similarly, since 1607 English courts have been empowered to award counsel fees to defendants, in all actions where such awards might be made to plaintiffs.8 Rules governing administration of these and related provisions have developed over the years. It is now customary in England; after litigation- of substantive claims has terminated, to conduct separate hearings before special “taxing Masters” in order to determine the appropriateness and the size of an award of counsel fees. To prevent the ancillary proceedings from becoming unduly protracted .and burdensome, fees which may be included in an award are usually prescribed, even including the amounts that may be recovered for letters drafted on behalf of a client.9

Although some American commentators have urged adoption of the English practice in this country,10 our courts have generally resisted any .movement in that direction. The rule here has long been that attorney’s fees are not ordinarily recoverable in the absence of a statute or enforceable contract providing therefor. This Court first announced that rule in Arcambel v. Wiseman, [718]*7183 Dall. 306 (1796), and adhered to it in later decisions. See, e. g., Hauenstein v. Lynham, 100 U. S. 483 (1880); Stewart v. Sonneborn, 98 U. S. 187 (1879); Oelrichs v. Spain, 15 Wall. 211 (1872); Day v. Woodworth, 13 How. 363 (1852). In support of the American rule, it has been argued that since litigation is at best uncertain one should not be penalized for merely defending or prosecuting a lawsuit, and that the poor might be unjustly discouraged from instituting actions to vindicate their rights if the penalty for losing included the fees of their opponents’ counsel. Cf. Farmer v. Arabian American Oil Co., 379 U. S. 227, at 235 (1964); id., at 236-239 (concurring opinion of Mr. Justice Goldberg). Also, the time, expense, and difficulties of proof inherent in litigating the question of what constitutes reasonable attorney’s fees would pose substantial burdens for judicial administration. Oelrichs v. Spain, supra, at 231.

Limited exceptions to the American rule have, of course, developed.11 They have been sanctioned by this Court when overriding considerations of justice seemed to compel such a result. In appropriate circumstances, we have held, an admiralty plaintiff may be awarded counsel fees as an item of compensatory damages (not as a separate cost to be taxed). Vaughan v. Atkinson, 369 U. S. 527 (1962). And in a civil contempt action occasioned by willful disobedience of a court order an award of attorney’s fees may be authorized as part of the fine to- be levied on the defendant. Toledo Scale Co. v. Computing Scale Co., 261 U. S. 399, 426-428 (1923). the case upon which petitioners here place their principal reliance— [719]*719Sprague v. Ticonic National Bank, 307 U. S. 161 (1939)— involved yet another exception. That exception had previously been applied in cases where a plaintiff traced or created a common fund for the benefit of others as well as himself. Central Railroad & Banking Co. v. Pettus, 113 U. S. 116 (1885); Trustees v. Greenough, 105 U. S. 527 (1882). In that situation to have allowed the others to obtain full benefit from the plaintiff’s efforts without requiring contribution or charging the common fund for attorney’s fees would have been to enrich, the others unjustly at the expense of the plaintiff. Sprague itself involved a variation of the common-fund situation where, although the plaintiff had not in a technical sense sued for the benefit, of others or to create a common fund, the stare decisis effect of the judgment obtained by the plaintiff established as a matter of law the right of a discernible class of persons to collect upon similar claims. The Court held that the general equity power “to do equity in a particular situation” supported an award of attorney’s fees under such circumstances for the same reasons that underlay the common-fund decisions.

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Bluebook (online)
386 U.S. 714, 87 S. Ct. 1404, 18 L. Ed. 2d 475, 1967 U.S. LEXIS 2853, 153 U.S.P.Q. (BNA) 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleischmann-distilling-corp-v-maier-brewing-co-scotus-1967.