Octane Fitness held that an exceptional case is one standing out regarding the substantive strength of a party's position or the unreasonable manner of litigation, determined by preponderance rather than clear and convincing evidence.
Highmark applies abuse of discretion review.
Alternative Names:
Exceptional Case Fees|Section 285 Fees
Why it Matters?
Octane substantially lowered the threshold from the prior rigid framework requiring objective baselessness and subjective bad faith, which made fee awards available against plaintiffs pursuing weak claims and against parties litigating unreasonably. Documenting an opponent's unreasonable conduct contemporaneously supports the eventual motion. The reduced standard cuts both ways and applies to prevailing plaintiffs as well.
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Frequently asked questions
What did Octane Fitness change?
Does the standard favor either side?
