Adjustacam v. Newegg is a nonprecedential case decided on September 17, 2015 on appeal from the Eastern District of Texas. There, after dismissing the case, the district court denied defendant Newegg’s motion for attorney fees under the then-prevailing Brooks Furniture standard. Newegg appealed the denial of fees. Plaintiff AdjustaCam appealed claim construction.
The Federal Circuit dismissed the claim construction appeal for lack of jurisdiction, vacated the denial of attorney fees, and remanded.
Under Brooks Furniture, a case is exceptional only when it’s shown by clear and convincing evidence that “there has been some material inappropriate conduct or [that] the litigation is both objectively baseless and brought in subjective bad faith.” Octane Fitness rejected this standard as overly rigid, holding that an exceptional case is simply one that, by a preponderance of the evidence, “stands out from others with respect to the substantive strength of a party’s litigating position or the unreasonable manner in which the case was litigated.” The Supreme Court “did not simply relax the standard under § 285. It substantially changed the analysis.” So the Federal Circuit remanded for reconsideration in light of Octane Fitness.
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