exceptional case

Exceptional case refers to standout and extreme cases in which a law, rule, or standard does not apply, or a new rule or standard does apply. For example, a sales contract may stipulate that product liability remains with the seller except for exceptional cases. The term exceptional case is broad and can include many unpredictable scenarios that would be an exception to the contract stipulation, like if the buyer intentionally breaks the product. Another example can be seen by the Supreme Court case, Octane Fitness, LLC v. ICON, 572 U.S. 545 (2014). In Octane, the Court defined exceptional cases with regard to attorney’s fees in patent cases as “simply one that stands out from others with respect to the substantive strength of a party’s litigating position (considering both the governing law and the facts of the case) or the unreasonable manner in which the case was litigated.” Exceptional cases can have different meanings based on the context, but universally refer to cases that differ from the norm, and therefore must be treated uniquely. 

[Last reviewed in March of 2026 by the Wex Definitions Team] 

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