Yeshiva University v. New England Educational Institute, Inc.
In a Lanham Act action, defendants, who prevailed after a jury trial against plaintiff Yeshiva, sought approximately $50,000 in attorney's fees. The application presented a novel question: whether a prevailing defendant is entitled to fees when the plaintiff's liability claims were asserted in good faith but the damage claims were grossly exaggerated. The court first affirmed the applicability of the Lanham Act's attorney fee provision, § 35(a), to actions involving unregistered marks, citing precedent. Despite acknowledging the plaintiff's highly exaggerated damage claims, the court determined that the case, which was close on the merits regarding the initial copying allegations, did not meet the 'exceptional cases' standard required for awarding attorney's fees to a prevailing defendant. Consequently, the defendants' application for attorney's fees was denied.