Akanthos Capital Management, LLC v. CompuCredit Holdings Corp.

2 F. Supp. 3d 1306, 2014 U.S. Dist. LEXIS 29355, 2014 WL 896743
CourtDistrict Court, N.D. Georgia
DecidedMarch 7, 2014
DocketCivil Action No. 1:10-cv-844-TCB
StatusPublished
Cited by5 cases

This text of 2 F. Supp. 3d 1306 (Akanthos Capital Management, LLC v. CompuCredit Holdings Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akanthos Capital Management, LLC v. CompuCredit Holdings Corp., 2 F. Supp. 3d 1306, 2014 U.S. Dist. LEXIS 29355, 2014 WL 896743 (N.D. Ga. 2014).

Opinion

ORDER

TIMOTHY C. BATTEN, SR., District Judge.

This case is before the Court on Defendants’ bill of costs [215] and renewed motion for costs [236] and Plaintiffs’ objections thereto [218].

I. Background

The history of this case is long and need not be recited in its entirety. But to decide whether to award costs, the Court must at least provide a brief summary.

This suit was filed in December 2009 in the District of Minnesota. In March 2010 it was transferred here. In April Plaintiffs moved for a preliminary injunction to stop Defendant CompuCredit from repurchasing its corporate notes. On May 12 the Court held a hearing and denied the motion for a preliminary injunction. The case proceeded: the litigants conducted discovery and Defendants moved to dismiss. After two trips to the Eleventh Circuit, Plaintiffs’ claims were dismissed in 2013. Defendants now request $92,327.40 in costs, and Plaintiffs object.

II. Applicable Law

The Federal Rules permit awards of costs to prevailing parties, Fed.R.Civ.P. 54(d)(1), and create a presumption in favor of awarding costs. Manor Healthcare Corp. v. Lomelo, 929 F.2d 633, 639 (11th Cir.1991). Cost awards are reviewed for abuse of discretion, id., but district courts’ discretion is not unfettered; it is limited by statute, see Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437, 445, 107 S.Ct. 2494, 96 L.Ed.2d 385 (1987). The limiting statute confines taxable costs to the following categories:

(1) Fees of the clerk and marshal;
[1308]*1308(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 ....

28 U.S.C. § 1920.

III. Discussion

A. Costs to which Plaintiffs Have No Objection

Plaintiffs do not object to an award of $1,100.53 in costs for clerk and transcript fees and for paper copies. An award of those costs is permitted by §§ 1920(1), (2) and (4), so the Court will award them as unopposed.

B. Costs to which Plaintiffs Object

Plaintiffs object to two categories of costs requested by Defendants: first, $25,965.26 for graphics and technology consulting services for the May 12, 2010 preliminary injunction hearing; and second, $65,261.61 for the cost of electronic discovery. Defendants argue that § 1920(4) permits an award of both categories of costs; Plaintiffs disagree.

1. Graphics and Technology Consulting Services

First, Defendants are not entitled to an award of the costs of graphics and technology consulting services. Defendants request an award of $25,965.26 in costs paid to an outside vendor, FTI Consulting, to create physical and electronic exhibits for the hearing and to provide technology support at the hearing. Seven FTI professionals billed a total of 99.5 hours at rates ranging from $175 to $375 per hour. Tasks completed by FTI included “designing graphics concepts,” “preparfing] visuals” and “prepar[ing] demonstratives” for the hearing, “on-site graphics support” at the hearing, and “on-site ... support” of trial-presentation software during the hearing.

The relevant subsection of § 1920 permits an award of costs for “[f]ees for exemplification and the costs of making copies of any materials where the copies are necessarily obtained for use in the case[.]” 28 U.S.C. § 1920(4). To be taxable, then, the consulting costs must fit into one of two categories: they must either be costs of exemplification or of necessary copies. See Arcadian Fertilizer, L.P. v. MPW Indus. Servs., Inc., 249 F.3d 1293, 1296 (11th Cir.2001).

a. Exemplification

Binding Eleventh Circuit precedent dictates that none of the consulting costs fit into the exemplification category. In Arcadian Fertilizer, the Eleventh Circuit defined “exemplification” narrowly:

[W]e conclude that the term ‘exemplification’ [in § 1920(4) ] imports the legal meaning of ‘[a]n official transcript of a public record, authenticated as a true copy for use as evidence,’ Black’s Law DICTIONARY 593 (7th ed.1999), and not the broader and common connotation that includes ‘a showing or illustrating by example.’ Webster’s Third New International Dictionary 795 (1981).

Id. at 1297; see also Hawk v. Klaetsch, No. 12-0058-WS-B, 2013 WL 474356, at *1 n. 1 (S.D.Ala. Feb. 6, 2013) (citing Arcadian Fertilizer’s narrow definition of exemplification as good law); DuChateau v. [1309]*1309Camp Dresser & McKee, Inc., No. 10-60712-CIV, 2012 WL 1069166, at *3 (S.D.Fla. Mar. 29, 2012) (same). Under that narrow definition, Defendants’ consulting costs are not taxable as exemplifications.

b. Necessary Copies

Plaintiffs rely on Arcadian Fertilizer to support their argument that Defendants’ consulting costs are also not taxable as necessary copies. The plaintiff in Arcadian Fertilizer won a jury verdict and requested costs for trial exhibits. The district court awarded costs, and the defendant appealed. The Eleventh Circuit separated the plaintiffs costs into two types: costs for creating oversized documents and color photographs, and costs for creating computer animations and video exhibits.

The Eleventh Circuit held that the first type of costs — oversized documents and color photographs — was taxable as necessary copies under § 1920(4). Arcadian Fertilizer, 249 F.3d at 1296-97. Because oversized documents and color photographs are “reproductions involving paper in its various forms,” and because the subsection permitted awards of costs for “copies of paper,” those costs could be taxed. Id. at 1296. But the second type of costs — computer animations and video exhibits — was not taxable because it could not be characterized as “paper.” Id. Plaintiffs argue that this precedent prohibits an award of Defendants’ consulting costs as necessary copies because the costs were incurred to create non-paper, electronic exhibits.

But Arcadian Fertilizer interpreted a now-outdated version of § 1920(4).

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2 F. Supp. 3d 1306, 2014 U.S. Dist. LEXIS 29355, 2014 WL 896743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akanthos-capital-management-llc-v-compucredit-holdings-corp-gand-2014.