Litigation Funder Wins Trademark Case Against Former CEO

The former CEO of litigation funding company Oasis Legal Finance Operating Co. misused the company’s trademarks by branding his new ventures with “Oasis” after being fired, a Chicago federal court said.

Gary Chodes’ “Oasis Legal Finance Group” and “Oasis Disability Group” infringed Oasis’ trademarks, the court ruled Wednesday.

The court said Oasis is “arguably the most well-known brand nationwide for legal funding.” After Chodes was fired in 2013, he claimed to own the “Oasis” marks, and used the word on his new legal funding and Social Security disability advocacy services. Chodes and Nicolas Messé also created similarly named websites to advertise the new businesses.

Consumers seeking litigation funding would confuse the two nearly identical “Legal Finance” names, and Chodes and Messé intended to “palm off” the new company as affiliated with Oasis, the court said. The court noted Chodes said he chose the name to “solidify” his ownership of the trademarks.

Chodes’ disability group also infringed by using “Oasis,” the court said. It found Chodes intended to “trade on the strength” of Oasis’ name, noting he advertised that his new company would “once again” provide disability services and “return” to the market, which implied an affiliation with the preexisting Oasis.

Oasis also succeeded in canceling Chodes’ trademark registration for “Oasis” covering “paralegal services.”

The only claim on which Oasis didn’t win summary judgment was a cyberpiracy claim against Messé, because it hadn’t proved he had a bad-faith intent to profit from the company’s trademarks.

Judge Robert W. Gettleman wrote the opinion.

Irwin IP and J.E. Hedman Law LLC represented Oasis. James Madigan Law CH and Quantum Legal LLC represented Chodes and Messé.

The case is Oasis Legal Fin. Operating Co. v. Chodes, N.D. Ill., No. 17-cv-358, 4/15/20.