Intellectual Property Law

Seventh Circuit: Dismissal with prejudice makes defendant "prevailing party" and eligible for fees

By McKee, Voorhees & Sease, P.L.C.

In a decision yesterday, the Seventh Circuit clarified what is required for a party to be considered a "prevailing party" in a copyright case, and therefore be eligible for an award of attorneys' fees under § 505.  In this case, the plaintiff asked for a voluntary dismissal without prejudice under Rule 41(a)(2), as the case had been pending for over a year.  The district court dismissed the case with prejudice, but held that the dismissal did not make the defendant a prevailing party, and therefore declined to award fees under § 505.

The Seventh Circuit reversed, holding that because the dismissal with prejudice was a favorable judgment that materially altered the legal relationship of the parties.  As a result, the district court should have considered whether fees were appropriate.  The court took the next step also, and found that an award of fees was appropriate in this case, given the facts and the relationship between the parties, and remanded with instructions to award appropriate fees for both the original case and the appeal.

More detail of Riviera Distribs., Inc. v. Jones after the jump.

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Full post as published by FileWrapper on February 21, 2008 (boomark / email).