68V BTR Holdings, LLC v. City of Fairhope

District Court, S.D. Alabama·Decided September 5, 2024·No. 1:22-cv-00430·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION 68V BTR HOLDINGS, LLC, ) ) Plaintiff, ) ) v. ) CIVIL ACTION 22-0430-WS-B ) CITY OF FAIRHOPE, et al., ) ) Defendants. ) ORDER This matter is before the Court on the defendants’ motion to retax costs. (Doc. 161). The plaintiff has filed a response and the defendants a reply, (Docs. 164, 165), and the motion is ripe for resolution. After careful consideration, the Court concludes the motion is due to be granted in part and denied in part.

BACKGROUND Familiarity with the pleadings, and with other motions, orders, and activity in the file, is assumed. The plaintiff is the owner of two parcels of property (“the Properties”) that it sought to develop. The entity defendants are the City of Fairhope (“the City”) and the City of Fairhope Planning Commission (“the Commission”). The individual defendants (“the Commissioners”) are members of the Commission. The plaintiff sought approval from the Commission for development of the Properties as multi-occupancy housing (“the Projects”), but the Commission, by vote of the Commissioners, denied the plaintiff’s applications. The original complaint, (Doc. 1), asserted both state and federal claims against the City and Commission. The first and second amended complaints, (Docs. 38, 95), asserted both state and federal claims against the City, the Commission, and the Commissioners. In a series of rulings, the Court dismissed on the merits every federal claim and several state claims and dismissed pursuant to 28 U.S.C. § 1367(c) the remaining three state claims. (Docs. 19, 69, 70, 149, 150). The Court then entered final judgment for the defendants on all claims other than the three claims dismissed under Section 1367(c). (Docs. 151, 152). The plaintiff has since refiled these three claims in state court. (Doc. 158-1 at 345-50). The defendants filed a bill of costs pursuant to Rule 54(d), seeking taxation of $23,172.86. (Doc. 153). The Clerk taxed $0.00, (Doc. 159), and the instant motion timely followed.

DISCUSSION “Unless a federal statute, these rules, or a court order provides otherwise, costs – other than attorney’s fees – should be allowed to the prevailing party.” Fed. R. Civ. P. 54(d)(1).

I. Prevailing Party. As noted, the defendants prevailed on the merits on every one of the plaintiff’s federal claims, as well as the majority of the plaintiff’s state claims. The plaintiff nevertheless denies that the defendants are prevailing parties for purposes of Rule 54(d), on the grounds that there has been no material change in the parties’ legal relationship. (Doc. 164 at 5). The plaintiff’s position is negated by the very case on which it relies. In Head v. Medford, 62 F.3d 351 (11th Cir. 1995), the trial court granted the defendant summary judgment on the plaintiff’s federal claims but, declining to exercise supplemental jurisdiction over the state claims, dismissed them without prejudice pursuant to Section 1367(c). Id. at 353. The trial court without explanation denied costs under Rule 54(d). Id. at 354. The Eleventh Circuit ruled that, given the entry of judgment for the defendants on the federal claims, “[t]hat the district court declined to exercise its supplemental jurisdiction under 28 U.S.C. § 1367 and dismissed all of the plaintiff’s remaining state law claims, does not impair the fact that, as far as the federal case was concerned, defendants prevailed.” Id. at 355. “Thus, defendants were the prevailing party in the district court for purposes of Rule 54(d) and are entitled to their costs unless the district court has some special reason to deny the costs.” Id. In light of Head, the defendants are prevailing parties for purposes of Rule 54(d).

II. Special Circumstances. As noted, the Head Court recognized that “some special reason” might justify denying costs. 62 F.3d at 355; accord id. at 356 (“If there are special circumstances that justify an award of no costs … the district court must make these circumstances clear in its order.”).1 As a special reason not to award costs, the plaintiff asserts that, because three of its claims in this Court are now pending in state court, the issue of costs is “not ripe” and that “the state court will be in the best position to fairly assess costs after all the state law claims have been litigated.” (Doc. 164 at 6). For this proposition, the plaintiff relies entirely on Seeds v. Lucero, 2002 WL 35649996 (D.N.M. 2002). Seeds involved a state action removed to federal court based on the presence of claims brought pursuant to 42 U.S.C. § 1983. The federal court granted summary judgment on the federal claims and remanded the state claims. In denying costs, the Seeds Court stated that, because the plaintiffs might prevail in state court on their state claims, “it would be premature and unfair for this Court to award costs in favor of the Defendants, say for a deposition transcript that the Defendants used to defeat the Seeds’ federal claims in this forum, when the Seeds may use that same deposition transcript to establish their common law claims in state court.” This possibility, the Seeds Court believed, constituted a “special reason” to deny costs within the contemplation of Head. 2002 WL 35649996 at *2. The Court respectfully disagrees. The question of costs in Seeds was not premature. The defendants were the prevailing parties in the federal litigation,2 and nothing later occurring in state court could

1 This is consonant with the rule that “there is a strong presumption that the prevailing party will be awarded costs,” which can be overcome only by a “sound reason for doing so.” Yellow Pages Photos, Inc. v. Ziplocal, LP, 846 F.3d 1159, 1166 (11th Cir. 2017) (internal quotes omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

68V BTR Holdings, LLC v. City of Fairhope, (S.D. Ala. 2024).

68V BTR Holdings, LLC v. City of Fairhope (68V BTR Holdings, LLC v. City of Fairhope) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related