AFL Telecommunications LLC v. Fiberoptic Hardware LLC et al

Filing 67

ORDER denying 65 Motion for Attorney Fees. Signed by Judge David G Campbell on 12/3/2012.(NVO)

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WO

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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AFL Telecommunications LLC,
Plaintiff,

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No. CV11-01081-PHX-DGC
ORDER

v.
Fiberoptic Hardware, LLC,
Defendant.

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Plaintiff AFL Telecommunications LLC has filed a motion for attorneys’ fees and

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costs. Docs. 65, 66. Defendant has not responded. The Court will exercise its discretion

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and deny the motion.

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A district court has discretion to award attorneys’ fees to a prevailing party under

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the Lanham Act, but only in “exceptional cases.” See 15 U.S.C. § 1117(a); Gracie v.

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Gracie, 217 F.3d 1060, 1071 (9th Cir. 2000). The Ninth Circuit construes the “exceptional

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circumstances” requirement narrowly. Id. “Exceptional circumstances can be found when

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the non-prevailing party’s case is groundless, unreasonable, vexatious, or pursued in bad

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faith.”

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Pellegrini, 337 F.3d 1036, 1040 (9th Cir.2003).

Id. (internal quotation marks omitted); see also Horphag Research Ltd. v.

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The Court entered a default judgment against Defendant and awarded more than

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$217,000 in damages when its counsel withdrew from this case. Doc. 63. Defense counsel

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stated that Defendant no longer could afford to litigate this case and was ceasing

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operations. Doc. 60.

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Plaintiff asks the Court to find that Defendant’s conduct was willful, malicious, and

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wanton, and therefore satisfies the “exceptional circumstances” requirement, because

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Plaintiff’s complaint contained those allegations and a default was entered. The Court

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notes, however, that Defendant denied those allegations in its answer. Doc. 33.

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The Court cannot conclude that Plaintiff’s allegations are correct merely because a

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default judgment was entered in this case. Where an award of fees is exceptional and the

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Court’s power to grant such an award is construed narrowly, the Court concludes that more

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than a default is needed for the Court to finds that exceptional circumstances exist.

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IT IS ORDERED that Plaintiff’s motion for attorneys’ fees and costs (Doc. 65) is
denied.
Dated this 3rd day of December, 2012.

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