Litigation Funder Wins $3 Million in Fees in Trademark Spat

Litigation funding company Oasis Legal Finance Operating Co. won roughly $2.99 million in attorneys’ fees plus about $107,500 in costs, having prevailed in a trademark dispute against its former CEO and his business partner, a federal judge in Illinois ruled.

Oasis demonstrated that “this is an exceptional case” that justifies awarding attorneys’ fees under the Lanham Act because not only did the company prove nearly all of its claims, but the defendants “litigated this case in an unreasonable manner,” Judge Robert W. Gettleman said.

While Oasis made “strong arguments” in its favor, the defendants offered “a slew of meritless defenses,” the court said. They also “engaged in gamemanship” by making improper discovery requests, refusing to comply with Local Rule 56.1, and repeatedly ignoring filing deadlines, it noted.

Oasis sued ex-CEO Gary Chodes, who was fired in 2013, and Nicolas Messé for trademark infringement and other related claims after they launched new business ventures dubbed “Oasis Legal Finance Group” and “Oasis Disability Group.” Chodes argued he owned the marks and registered a trademark in “Oasis” that covered “paralegal services,” which the company succeeded in canceling.

The court granted Oasis summary judgment on all but one claim, finding that Chodes and Messé had infringed his former employer’s trademarks.

The order was entered Thursday in the U.S. District Court for the Northern District of Illinois.

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. LLC v. Chodes, 2021 BL 86168, N.D. Ill., No. 17-cv-0358, 3/11/21