GUST, INC. V. ALPHACAP VENTURES, LLC
- Sep 28 2018 |
- Category: CAFC Updates
Gutride Safier LLP (“Gutride”), a law firm representing AlphaCap Ventures, LLC (a non-capitalized, non-practicing entity based in California) in the district court litigation, appeals the award of fees under 28 U.S.C. § 1927, making Gutride jointly and severally liable for all expenses incurred by Gust, Inc. in defending the lawsuit, including attorneys’ fees and costs. Because the district court’s conclusion that Gutride’s patent eligibility position lacked color was built on improper hindsight as to the state of the law and a conclusory analysis of the claims at issue, the CAFC concludes that the district court abused its discretion in finding that Gutride unreasonably and vexatiously multiplied the proceedings by making arguments on patent eligibility and venue, and failing to resolve the litigation earlier than it did, and reverses the award fees and costs. Judge Wallach dissents.