Large Audience Display v. Tennman is a nonprecedential case decided on August 20, 2018 on appeal from the Central District of California. After the PTO issued an IPR certificate cancelling all of Plaintiff Large Audience’s claims asserted in the district court, the district court dismissed the case with prejudice. On remand from the Federal Circuit, the district court awarded all attorney fees and costs incurred from the beginning of case. This amount included fees relating to the district court litigation in Texas and California, and fees associated with the reexamination proceeding at the PTO. Large Audience appealed.
The Federal Circuit affirmed the district court’s exceptionality finding and award of fees.
The district court did not abuse its discretion in concluding that Large Audience’s conduct was exceptional. “The district court concluded that the case was exceptional primarily on three grounds: (1) [Large Audience’s] opposition to the defendants’ motion to transfer from the Eastern District of Texas; (2) [Large Audience’s] assertion of objectively weak arguments to the PTO during reexamination,; and (3) [Large Audience’s] use of a clearly privileged email between defendant Tennman and its attorneys in its opposition to LADS’s motion for attorney fees.” “While [the Federal Circuit] may have reached a different conclusion regarding exceptionality” if it was “evaluating the parties’ arguments in the first instance,” appellate review here is limited to “whether the district court, in considering the totality of circumstances, abused its discretion.” And the district court did not.
The district court did not abuse its discretion in awarding fees for the entire litigation. “The district court concluded that the factual bases for the exceptionality finding—from the venue fight, to the unreasonable claim construct[ions], to the use of the privileged email—permeated the entire litigation.” Full fees may be awarded in such circumstances. The district court awarded fees “by calculating the reasonable number of hours and reasonable rates of Tennman’s attorneys,” and thus performed a proper Lodestar analysis. The Federal Circuit modified the award for an inadvertent error by Tennman.
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Large Audience Display Sys., LLC v. Tennman Prods., LLC, 745 F. App’x 153 (Fed. Cir. 2018)