Advanced Fluid Systems, Inc. v. Huber

CourtDistrict Court, M.D. Pennsylvania
DecidedFebruary 4, 2021
Docket1:13-cv-03087
StatusUnknown

This text of Advanced Fluid Systems, Inc. v. Huber (Advanced Fluid Systems, Inc. v. Huber) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced Fluid Systems, Inc. v. Huber, (M.D. Pa. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA

ADVANCED FLUID SYSTEMS, INC., : CIVIL ACTION NO. 1:13-CV-3087 : Plaintiff : (Judge Conner) : v. : : KEVIN HUBER, INSYSMA : (INTEGRATED SYSTEMS AND : MACHINERY, LLC), LIVINGSTON & : HAVEN, LLC, CLIFTON B. VANN IV, : and THOMAS AUFIERO, : : Defendants :

MEMORANDUM

Before the court are three motions (Docs. 413, 415, 419) seeking review of various aspects of the Clerk of Court’s taxation of costs. The court will grant in part and deny in part the pending motions. I. Factual Background and Procedural History

The factual background and procedural history of this case are detailed at length in the prior opinions of this court and in the Third Circuit Court of Appeals’ comprehensive opinion in Advanced Fluid Systems, Inc. v. Huber, 958 F.3d 168 (3d Cir. 2020). We incorporate that background in full. As before, we refer to plaintiff Advanced Fluid Systems, Inc., as “AFS”; to defendants Livingston & Haven, LLC, Clifton B. Vann IV, and Thomas Aufiero collectively as “the Livingston defendants”; to defendant Kevin Huber as “Huber”; and to defendant Integrated Systems and Machinery, LLC, as “Integrated Systems.” The court of appeals issued its mandate on June 5, 2020. The Clerk of Court thereafter issued a taxation of costs. All parties have filed motions objecting to various aspects of the Clerk’s taxation. (See Docs. 413, 415, 419). The motions

are fully briefed and ripe for disposition. II. Legal Standard

The Federal Rules of Civil Procedure provide that, “[u]nless a federal statute, these rules, or a court order provides otherwise, costs . . . should be allowed to the prevailing party.” FED. R. CIV. P. 54(d)(1). Rule 54(d)(1) creates a “strong presumption” in favor of awarding allowable costs. See Reger v. The Nemours Found., Inc., 599 F.3d 285, 288 (3d Cir. 2010) (quoting In re Paoli R.R. Yard PCB Litig., 221 F.3d 449, 462 (3d Cir. 2000)). A court may, in its discretion, reduce or deny allowable costs, so long as it “articulate[s] reasons within the bounds of its equitable power” for doing so. See In re Paoli, 221 F.3d at 468; see also Reger, 599 F.3d at 288. The scope of taxable costs is set forth by statute, see 28 U.S.C. § 1920, and expanded upon in our Local Rules of Court, see M.D. PA. L.R. 54.4. The Clerk of Court is responsible for the initial taxation of costs, which may be

appealed to the district court within seven days. See FED. R. CIV. P. 54(d)(1). III. Discussion

AFS filed a bill of costs in the amount of $40,360.49. (See Doc. 341). On June 10, 2020, the Clerk of Court issued its taxation of costs, authorizing certain costs, disallowing others, and taxing total costs of $19,999.86 in favor of AFS and against all defendants. (See Doc. 412 at 2). AFS appeals the Clerk’s disallowances of third-party copying and file-format conversion fees. (See Doc. 414 at 3-12). The Livingston defendants, Huber, and Integrated Systems jointly oppose AFS’s appeal, (see Doc. 424 at 4-9), and separately appeal the Clerk’s allowance of private process server costs and certain deposition-related charges and fees, (see Doc. 416 at 4-10;

Doc. 418 at 1-2). Allowable costs are set forth in Title 28, Section 1920 of the United States Code. See 28 U.S.C. § 1920. Section 1920 establishes six categories of allowable costs: (1) Fees of the clerk and marshal;

(2) Fees for printed or electronically recorded transcripts necessarily obtained for use in the case;

(3) Fees and disbursements for printing and witnesses;

(4) Fees for exemplification and the costs of making copies of any materials where the copies are necessarily obtained for use in the case;

(5) Docket fees under section 1923 of this title; [and]

(6) Compensation of court appointed experts, compensation of interpreters, and salaries, fees, expenses, and costs of special interpretation services under section 1828 of this title.

Id. Local Rule of Court 54.4 incorporates and elaborates upon Section 1920 and identifies examples of taxable items within each of these categories. See M.D. PA. L.R. 54.4. Against this backdrop, we address the parties’ appeals seriatim. A. AFS’s Appeal

AFS challenges the Clerk’s disallowances in just one category: Section 1920(4), which authorizes the Clerk to tax “[f]ees for exemplification and the costs of making copies of any materials where the copies are necessarily obtained for use in the case.” See 28 U.S.C. § 1920(4); (see also Doc. 414 at 3-11). In this category, AFS sought reimbursement of $21,119.37 in costs, as follows: $6.50 for a copy of a Virginia state court complaint used at trial; $1,042.74 for four complete sets of trial

exhibits ordered by the court; $10.50 for a copy of a deposition requested by the court during trial; $782.06 for sets of exhibits used at depositions; $11,301 for file- format conversion by AFS’s e-discovery vendor; $471 for conversion of videotapes to DVD format; $7,099.82 for third-party file-format conversion and copying in response to subpoenas; $97 for third-party copying services; and $308.75 for in- house scanning. (See Doc. 341 at 7-11 ¶¶ 15-21). The Clerk disallowed $11,301 and $471 file-format conversion fees, $7,099.82 and $97 fees for third-party file-format

conversion and copying, and $308.75 in-house scanning costs. (Doc. 412 at 1-2). AFS appeals all but the scanning disallowance, invoking our court of appeals decision on e-discovery costs in Race Tires America, Inc. v. Hoosier Racing Tire Corp., 674 F.3d 158 (3d Cir. 2012). (See Doc. 414 at 3-11). Defendants do not dispute that Race Tires allows taxation of electronically stored information (“ESI”) conversion costs that are “the functional equivalent of ‘making copies.’” See Race

Tires, 674 F.3d at 161, 171 n.11; (see also Doc. 424 at 4-9). Rather, they contend that AFS has not shown that these costs were incurred for copies “necessarily obtained for use in the case” or, for some costs, that they were obtained for anything akin to “copying” at all.1 (See Doc. 424 at 4-9). We agree with AFS to the extent it perceives error in the Clerk’s blanket

statement that “electronic file format conversion fees . . . are not allowed as taxable under 28 U.S.C. § 1920 and the Local Rules of Court.” (See Doc. 412 at 1-2). That conclusion is inconsistent with Race Tires, which authorizes taxation of costs for “scanning and conversion of native files to the agreed-upon format for production of ESI.” See Race Tires, 674 F.3d at 161, 167. Because the Clerk erroneously found that such costs were not taxable, the Clerk did not further consider whether the file- format conversion costs were “necessarily obtained for use in the case.” (See Doc.

412 at 2); see also 28 U.S.C. § 1920(4). We find that most of them were. AFS has submitted a declaration and additional evidence elaborating upon each of the disallowed conversion and copying items in its bill of costs. (See Doc. 341 at 9-10 ¶¶ 18-20; Docs. 414-1, 414-2, 414-3, 414-4).

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