Octane Fitness, LLC v. Icon Health

134 S. Ct. 1749, 188 L. Ed. 2d 816, 572 U.S. 545, 82 U.S.L.W. 4330
Supreme Court of the United States·Decided April 29, 2014·No. No. 12–1184.·Published·Cited by 688 cases

Opinion

(b) The Brooks Furniture framework superimposes an inflexible framework onto statutory text that is inherently flexible. Pp. 1756 - 1758.

(1) Brooks Furniture is too restrictive in defining the two categories of cases in which fee awards are allowed. The first category-cases involving litigation or certain other misconduct-appears to extend largely to independently sanctionable conduct. But that is not the appropriate benchmark. A district court may award fees in the rare case in which a party's unreasonable, though not independently sanctionable, conduct is so "exceptional" as to justify an award. For litigation to fall within the second category, a district court must determine that the litigation is both objectively baseless and brought in subjective bad faith. But a case presenting either subjective bad faith or exceptionally meritless claims may sufficiently set itself apart from mine-run cases to be "exceptional." The Federal Circuit imported this second category from *1752Professional Real Estate Investors, Inc. v. Columbia Pictures Industries, Inc., 508 U.S. 49, 113 S.Ct. 1920, 123 L.Ed.2d 611, but that case's standard finds no roots in § 285's text and makes little sense in the context of the exceptional-case determination. Pp. 1756 - 1758.

(2) Brooks Furniture is so demanding that it would appear to render § 285 largely superfluous. Because courts already possess the inherent power to award fees in cases involving misconduct or bad faith, see Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 258-259, 95 S.Ct. 1612, 44 L.Ed.2d 141, this Court has declined to construe fee-shifting provisions narrowly so as to avoid rendering them superfluous. See, e.g.,Christiansburg Garment Co. v. EEOC, 434 U.S. 412, 419, 98 S.Ct. 694, 54 L.Ed.2d 648. Pp. 1757 - 1758.

(3) Brooks Furniture 's requirement that proof of entitlement to fees be made by clear and convincing evidence is not justified by § 285, which imposes no specific evidentiary burden. Nor has this Court interpreted comparable fee-shifting statutes to require such a burden of proof. See, e.g.,Fogerty, 510 U.S., at 519, 114 S.Ct. 1023. P. 1758.

496 Fed.Appx. 57, reversed and remanded.

SOTOMAYOR, J., delivered the opinion of the Court, in which ROBERTS, C.J., and KENNEDY, THOMAS, GINSBURG, BREYER, ALITO, and KAGAN, JJ., joined, and in which SCALIA, J., joined except as to footnotes 1-3.


Rudolph A. Telscher, Jr., St. Louis, MO, for Petitioner.

Roman Martinez, for the United States as amicus curiae, by special leave of the Court, supporting the Petitioner.


Carter G. Phillips, Washington, DC, for the Respondent.

Rudolph A. Telscher, Jr., Counsel of Record, Kara R. Fussner, Steven E. Holtshouser, Daisy Manning, Harness, Dickey & Pierce, PLC, St. Louis, MO, for Petitioner.

Carter G. Phillips, Ryan C. Morris, Sidley Austin LLP, Washington, DC, Constantine L. Trela, Jr., Sidley Austin LLP, Chicago, IL, Larry R. Laycock, David R. Wright, Jared J. Braithwaite, Maschoff Brennan, Laycock Gilmore, Israelsen & Wright, Salt Lake City, UT, for Respondent.

Justice SOTOMAYOR delivered the opinion of the Court.*

Section 285 of the Patent Act authorizes a district court to award attorney's fees in patent litigation. It provides, in its entirety, that "[t]he court in exceptional cases may award reasonable attorney fees to the prevailing party." 35 U.S.C. § 285. In Brooks Furniture Mfg., Inc. v. Dutailier Int'l, Inc., 393 F.3d 1378 (2005), the United States Court of Appeals for the Federal Circuit held that "[a] case may be deemed exceptional" under § 285 only in two limited circumstances: "when there has been some material inappropriate conduct," or when the litigation is both "brought in subjective bad faith" and "objectively baseless." Id., at 1381. The question before us is whether the Brooks Furniture framework *1753is consistent with the statutory text. We hold that it is not.

I

A

Prior to 1946, the Patent Act did not authorize the awarding of attorney's fees to the prevailing party in patent litigation. Rather, the "American Rule" governed: " '[E]ach litigant pa[id] his own attorney's fees, win or lose....' " Marx v. General Revenue Corp., 568 U.S. ----, ----, 133 S.Ct. 1166, 1175, 185 L.Ed.2d 242 (2013). In 1946, Congress amended the Patent Act to add a discretionary fee-shifting provision, then codified in § 70, which stated that a court "may in its discretion award reasonable attorney's fees to the prevailing party upon the entry of judgment in any patent case." 35 U.S.C. § 70 (1946 ed.).

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Octane Fitness, LLC v. Icon Health, 134 S. Ct. 1749, 188 L. Ed. 2d 816, 572 U.S. 545, 82 U.S.L.W. 4330 (U.S. 2014).

134 S. Ct. 1749 (Octane Fitness, LLC v. Icon Health) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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