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ARTICLE · 18 APRIL 2020

Stipulating To Dismissal May Not Bar A Request For Attorneys' Fees

Finnegan, Henderson, Farabow, Garrett & Dunner LLP
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In Keith Manufacturing Co. v. Butterfield, No. 2019-1136 (Fed. Cir. Apr. 7, 2020), the Federal Circuit held that stipulating to a case's dismissal does not necessarily foreclose a party from seeking attorneys' fees.

United StatesIntellectual Property

In Keith Manufacturing Co. v. Butterfield, No. 2019-1136 (Fed. Cir. Apr. 7, 2020), the Federal Circuit held that stipulating to a case's dismissal does not necessarily foreclose a party from seeking attorneys' fees.

Keith Manufacturing Co. sued its former employee, Larry Butterfield, for patenting allegedly misappropriated trade secrets. Keith asserted state-law contract and tort claims and sought a declaratory judgment of noninfringement. The parties eventually resolved their dispute, filing a stipulation of dismissal with prejudice. Then Butterfield moved for attorneys' fees. The court denied the motion citing Fed. R. Civ. P. 54(d)'s requirement that the movant "specify a judgment" that justifies attorneys' fees. The court reasoned that, because a stipulation is not appealable, it cannot be a judgment.

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