Khan v. Hemosphere is a nonprecendential case decided on August 13, 2020, on appeal from the Northern District of Illinois. Pro se plaintiffs Khans “alleged that the defendant corporations, hospitals, and physicians directly and indirectly infringed” their patent. The Khans sued “three hundred defendants.” The district court dismissed without prejudice the Khans’ claims against certain defendants for improper venue. “Thereafter, more than 100 of the remaining defendants filed 11 separate motions to dismiss on various grounds, including insufficient service, untimely service, improper venue, misjoinder, and lack of personal jurisdiction.” “A subset of the non-Illinois-resident defendants also moved for sanctions against the Khans pursuant to Rule 11.” “The district court granted the motions and dismissed the claims against the defendants for want of prosecution.” “The district court held that dismissal of all remaining defendants was warranted due to the Khans’ insufficient and untimely attempts at service.” “Next, the district court granted the non-Illinois-resident defendants’ motion for sanctions based on the Khans’ assertions regarding venue and service, which they had maintained despite repeated warnings and guidance from the court.” The district court denied the Khans’ cross-motion for Rule 11 sanctions. The district court denied a defendant’s motion to declare the case exceptional for attorney fees. Both parties appealed.
The Federal Circuit affirmed the dismissal for failure to effectuate proper and timely service, affirmed the dismissal for improper venue, affirmed the grant of sanctions, affirmed the denial of the Khan’s cross-motion for sanctions, and affirmed the denial of attorney fees.
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The district court did not abuse its discretion in denying the defendant’s motion for attorney fees under § 285. “The district court found that the conduct described in the motion was largely identical to the conduct already presented in the defendants’ earlier sanctions motion and was already considered by the court in granting sanctions against the Khans.” “The district court also determined that, although the Khans’ litigation strategy was unorthodox, their conduct following the district court’s grant of sanctions did not rise to the level of exceptional.” The district court further found that the “sanctions amount of $95,966.90 was appropriate and reasonable given the Khans’ conduct in the case, but that imposing a three-fold increase in those fees was not warranted.” “Based on its assessment…, the district court determined that the Khans’ conduct in this case—while sanctionable—was not so unreasonable so as to make this case one of the rare cases worthy of a three-fold increase in fees imposed against them.” “Octane Fitness gives district courts broad discretion in such exceptional-case determinations.”