Fee-Shifting

News & Analysis as of

Sanctions and the Terrible, Horrible, No Good, Very Bad Appeal

This may not be a book my new grandson Felix will soon be reading, but it does raise a legitimate question: When you really, truly, believe a federal appeal is frivolous, and not just garden variety, I know you’re going to...more

Delaware corporate law and litigation: what happened in 2016 and what it means for you in 2017

Delaware has long been known as the corporate capital of the world, and it is now the state of incorporation for 66 percent of the Fortune 500 and more than half of all companies whose securities trade on the NYSE, Nasdaq and...more

Delaware Court of Chancery Addresses Fee-Shifting Bylaws and Raises the Question of whether Fee-Shifting Could Be Plausible by a...

In 2015, the Delaware General Corporation Law (“DGCL”) was amended to prohibit Delaware corporations from adopting bylaws that imposed liability on a stockholder for the attorneys’ fees or expenses of the corporation or any...more

Are All Troll Cases Exceptional?

In Iris Connex, LLC, v. Dell, Inc., [2:15-cv-1915-JRG] (January 25, 2016), District Judge Gilstrap, after granting summary judgment to Dell, awarded attorneys fees, noting Dell’s arguments that Iris Connex’s claim...more

In Bizarre Procedural Posture, Ninth Circuit Finds FCRA Willful Violation

In Syed v. M-I, LLC, the U.S. Court of Appeals for the Ninth Circuit recently held that combining a liability waiver and a Fair Credit Reporting Act (FCRA) disclosure in an employment application constitutes a willful...more

Update: Delaware Fee-Shifting Prohibition Reaching Match Point

As previously discussed, Delaware enacted legislation that prohibits corporations from adopting charter or bylaw provisions that shift a corporation’s legal costs to stockholders who are unsuccessful in litigation with...more

Solak v. Sarowitz et al., C.A. No. 12299-CB (Del. Ch. Dec. 27, 2016) (Bouchard, C.)

In this opinion, the Court of Chancery held that Section 109(b) of the Delaware General Corporation Law (the “DGCL”) prohibits a bylaw shifting to a stockholder plaintiff the attorneys’ fees and other expenses incurred by the...more

Delaware Chancery Court Confirms the Invalidity of Fee-Shifting Bylaws for Stock Corporations

In Solak v. Sarowitz, C.A. No. 12299-CB (Del. Ch. Dec. 27, 2016), the Delaware Court of Chancery held that plaintiff stated a claim that a stock corporation’s fee-shifting bylaw was facially invalid under Section 109(b) of...more

Court Of Chancery Strikes Down New Fee-Shifting Bylaw

After the enactment of Section 109(b) of the Delaware General Corporation Law, one would have thought that fee-shifting bylaws were invalid. However, this decision deals with another attempt to shift fees, this time when a...more

Delaware Court Addresses Fee-Shifting Bylaw

In 2015, Section 115 was added to the Delaware General Corporation Law, or DGCL providing that Delaware corporations may adopt bylaws requiring that internal corporate claims be filed exclusively in Delaware. Section 109(b)...more

Intellectual Property Law - December 2016

Design Patents—Supreme Court Decides Samsung v. Apple - Why it matters: On December 6, 2016, the Supreme Court decided Samsung v. Apple, holding that, for purposes of a "total profits" damages award for infringement of a...more

Superior Court Limits Contractual Indemnification To Third Party Claims

This decision holds that a general obligation to indemnify another party to a contract applies only to claims filed by a third party and not to claims between the parties to the contract itself. Hence, if you want to cover...more

Ninth Circuit Applies Octane Fitness’ Loosened Fee-Shifting Standard to Trademark Cases

Ninth Circuit joins growing trend in circuit courts, which has practical implications for trademark litigants on both sides. Two years have passed since the US Supreme Court added some teeth to the Patent Act’s...more

Copyright and Trademark Case Review: Who’s on First?, Virtual Lockers and Lanham Act Fee-Shifting

Copyright Opinions - Second Circuit Permits Distribution of Cloud-Based Samples, But Declines to Consider “Novel” Cloud Storage Infringement Issue: Smith v. Barnesandnoble.com, LLC, No. 15-3508 (2d Cir. October 6,...more

ISS Announces Rebranded Governance Rating System and New Factors

ISS has announced the adoption of QualityScore, a benchmark of corporate governance. QualityScore was previously known as QuickScore, and before that by the monikers “GRId” and “CGQ.” For US companies, the following is a...more

The 9th Circuit Injects Some “Octane” into the Lanham Act Attorneys’ Fee Provision

In the immortal words of the most recent Nobel Laureate in literature, “the times they are a changin.’” Section 35(a) of the Lanham Act provides that “[t]he court in exceptional cases may award reasonable attorney fees to...more

MoFo IP Newsletter - August 2016

Supreme Court Abolished Federal Circuit's Test for Willfulness - On June 13, 2016, in Halo Electronics, Inc. v. Pulse Electronics, Inc., 579 U.S. ___ (2016), the Supreme Court unanimously abrogated the Federal Circuit’s...more

Ambiguous Scope of 998 Offer Forfeits Potential Post-Offer Cost Recovery

In Yolanda Ignacio v. Marilynne Caracciolo (No. B266930), the California Court of Appeal for the Second District found that a settlement offer seeking to release a party from claims outside the scope of the litigation at...more

Kirtsaeng II: Fees in Copyright Cases Depend on Reasonableness of Litigation Position

Under 17 USC § 505, a “court may . . . award a reasonable attorney’s fee to the prevailing party.” However, when deciding whether to award attorneys’ fees under the Copyright Act’s fee-shifting provision, 17 USC § 505, the...more

Federal Circuit Review | July 2016

Obvious Combinations Do Not Need to Be Physically Combinable - In Allied Erecting and Dismantling Co., Inc. v. Genesis Attachments, LLC, Appeal No. 2015-1533, the Federal Circuit affirmed the PTAB’s invalidity finding...more

Advertising Law - July 2016

Ad Company's Geotargeting Locates a $1M Penalty - InMobi, a Singapore-based mobile advertising company, will pay almost $1 million in civil penalties and implement a comprehensive privacy program to settle charges that...more

Copyright and Trademark Case Review: In "Vogue," Burning Man, Building Plans and More

Copyright Opinions - Samples in Madonna's “Vogue” Too Trivial to Be Infringing: VMG Salsoul, LLC v. Ciccone, Nos. 13-57104, 14-55837 (9th Cir. June 2, 2016) - Graber, J. In a suit claiming infringement of both...more

Attorney Fee Awards In Unpaid Wages Cases – Court of Appeal Clarifies Who Is Entitled To Fees Under Statutory Fee Shifting...

On June 28, 2016, in Rogelio Ramos v. Manuel Garcia (“Ramos”) (Superior Court Case No. 37-2013-00037990-CU-OE-CTL), the Court of Appeal for the Fourth Appellate District reaffirmed that under Labor Code Section 218.5 an...more

Supreme Court Affirms Discretion to Award Fees in Copyright Suits, But Case Precedence Not Relevant

The Copyright Act states that the trial court “may…award” attorney’s fees to the prevailing party. Legal fees incurred by plaintiffs and defendants alike in copyright and other intellectual property cases can be staggering,...more

Blog: From Aeroflex to Trulia: A Seismic Shift

On January 22, 2016, Chancellor Bouchard rejected a proposed disclosure-only settlement inIn re Trulia, Inc. Stockholder Litigation, 129 A.3d 884 (Del. Ch. 2016), marking the culmination of what has been a seismic shift over...more

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