Nutrition Distribution LLC v. IronMag Labs, LLC, No. 19-55251 (9th Cir. 2020)
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Nutrition Distribution filed suit against IronMags, alleging that the company violated the Lanham Act by falsely advertising IronMag's nutritional supplements. After the district court entered judgment, Nutrition Distribution did not file a notice of appeal but, instead, filed a post-judgment motion for attorneys' fees under Federal Rule of Civil Procedure 54(d) and then filed a notice of appeal 30 days after the district court denied that fees motion.
The Ninth Circuit held that, because Nutrition Distribution did not file a notice of appeal within 30 days of the district court's judgment or obtain a Rule 58(e) order extending the time to appeal, the notice of appeal was untimely as to the district court's underlying judgment. The notice of appeal was timely as to the district court's later order denying attorneys' fees.
The panel explained that the Federal Rules are clear that ordinarily, the entry of judgment may not be delayed, nor the time for appeal extended, in order to tax costs or award fees. Furthermore, a motion for attorneys' fees does not extend the time to appeal the underlying judgment unless the district court so orders under Rule 58(e). In this case, Nutrition Distribution did not seek such an order, nor did the district court enter one. The panel also held that Nutrition Distribution's attempt to now save its untimely appeal of the underlying judgment by recasting its fees motion as a Rule 59 motion to alter or amend the judgment likewise fails. The panel stated that the 1993 amendments to the Federal Rules and the Supreme Court precedent that gave rise to them make clear that attorneys' fees motions cannot be recharacterized as Rule 59 motions to extend the time to appeal an underlying judgment. Accordingly, the panel affirmed the denial of fees, and otherwise dismissed the appeal for lack of jurisdiction.
Court Description: Appellate Jurisdiction / Attorneys’ Fees. The panel dismissed as untimely plaintiff’s appeal from the district court’s judgment and affirmed the district court’s post-judgment denial of attorneys’ fees in an action under the Lanham Act. On November 16, 2018, on cross motions for summary judgment, the district court rejected plaintiff’s claim for monetary relief, issued an injunction in favor of plaintiff, and denied plaintiff’s request for attorneys’ fees under the Lanham Act. On December 13, 2018, the district court issued findings of fact and conclusions of law and entered judgment. On December 27, 2018, plaintiff moved for attorneys’ fees under Federal Rule of Civil Procedure 54(d). The district court denied the post-judgment fees motion on January 30, 2019, and plaintiff filed a notice of appeal on March 1, 2019, within 30 days of the ruling on the fees motion. Under Federal Rule of Appellate Procedure 4(a)(1)(A), a notice of appeal must be filed within 30 days after entry of the judgment or order appealed from. The panel held that the notice of appeal was untimely as to the district court’s judgment because the motion for attorneys’ fees did not itself extend the time to appeal, and the district court did not enter an order extending the time pursuant to Rule 58. Further, agreeing with the Sixth Circuit, the panel held that NUTRITION DISTRIBUTION V. IRONMAG LABS 3 the fees motion could not be recharacterized as a Rule 59 motion to alter or amend the judgment for purposes of extending the time to appeal. The panel held that the notice of appeal was timely as to the district court’s later order denying attorneys’ fees. The panel held that the district court properly exercised its discretion in denying fees under the Lanham Act, which allows an award of attorneys’ fees in exceptional cases.
The court issued a subsequent related opinion or order on October 29, 2020.
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