Cage v. Harper

CourtDistrict Court, N.D. Illinois
DecidedApril 25, 2023
Docket1:17-cv-07621
StatusUnknown

This text of Cage v. Harper (Cage v. Harper) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cage v. Harper, (N.D. Ill. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

PATRICK B. CAGE, ) ) Plaintiff, ) Case No. 17-cv-7621 ) v. ) Hon. Steven C. Seeger ) TIFFANY HARPER, NICHOLAS ) GOWAN, KAMBIUM BUCKNER, ) DR. MARSHALL HATCH, SR., ) DR. HORACE SMITH, and DR. RACHEL ) LINDSEY, in their individual capacities, ) and the BOARD OF TRUSTEES FOR ) CHICAGO STATE UNIVERSITY, ) ) Defendants. ) ____________________________________)

MEMORANDUM OPINION AND ORDER This Order is the final nail in a long-running dispute between Plaintiff Patrick Cage (on the one hand) and Chicago State University and its Board of Trustees and interim President (on the other). Cage, the former General Counsel of Chicago State University, filed suit about his termination, alleging that Chicago State University fired him for reporting a potential ethics violation. The parties filed cross motions for summary judgment. This Court granted Defendants’ motion and denied Plaintiff’s motion. See Mem. Opin. and Order (Dckt. No. 379). The Seventh Circuit affirmed. Defendants filed a bill of costs (Dckt. No. 386), seeking recovery of costs for deposition transcripts, witnesses, and copies of materials necessarily used in the case, for a grand total of $25,083.86. Plaintiff objected to the bill of costs. (Dckt. No. 391). For the reasons stated below, the Court awards Defendants $22,811.49 in costs. Legal Standard The American Rule is that each side in a lawsuit must pay its own attorneys’ fees, unless a statute or a contract says otherwise. Attorneys’ fees are one thing. Costs are another. Federal Rule of Civil Procedure 54(d)(1) provides that “costs – other than attorney’s fees – should be allowed to the prevailing party.” See Fed. R. Civ. P. 54(d)(1). A statute enumerates

the costs that are recoverable under Rule 54(d)(1). See 28 U.S.C. § 1920. Recoverable costs include (1) fees of the clerk and marshal, (2) fees for transcripts necessarily obtained for use in the case, (3) witness fees and expenses, (4) fees for copies of papers necessarily obtained for use in the case, (5) docket fees, and (6) compensation for court-appointed experts and interpreters. See 28 U.S.C. § 1920(2); Coleman v. Robert W. Depke Juvenile Justice Ctr., 2018 WL 11426156, at *1 (N.D. Ill. 2018) (citing Republic Tobacco Co. v. N. Atl. Trading Co., Inc., 481 F.3d 442, 447 (7th Cir. 2007)). Even if authorized by statute, however, “a cost must be both reasonable and necessary to the litigation for a prevailing party to recover it.” Little v. Mitsubishi Motors N. Am., 514 F.3d

699, 702 (7th Cir. 2008). Deciding whether to tax costs against the losing party requires two inquiries: “(1) whether the cost imposed on the losing party is recoverable and (2) if so, whether the amount assessed for that item was reasonable.” Majeske v. City of Chicago, 218 F.3d 816, 824 (7th Cir. 2000). The rule “provides a presumption that the losing party will pay costs but grants the court discretion to direct otherwise.” Rivera v. City of Chicago, 469 F.3d 631, 634 (7th Cir. 2006). However, the “party seeking an award of costs carries the burden of showing that the requested costs were necessarily incurred and reasonable.” Trs. of the Chicago Plastering Inst. Pension Tr. v. Cork Plastering Co., 570 F.3d 890, 906 (7th Cir. 2009); Telular Corp. v. Mentor Graphics Corp., 2006 WL 1722375, at *1 (N.D. Ill. 2006) (“The prevailing party bears the burden of demonstrating the amount of its recoverable costs because the prevailing party knows, for example, how much it paid for copying and for what purpose the copies were used.”). Once the prevailing party makes that showing, the losing party bears the burden of affirmatively showing that the taxed costs are not appropriate. See Beamon v. Marshall & Ilsley Tr. Co., 411

F.3d 854, 864 (7th Cir. 2005). Ultimately, the decision whether to award costs rests within the discretion of the district court. See M.T. Bonk Co. v. Milton Bradley Co., 945 F.2d 1404, 1409 (7th Cir. 1991). Analysis Defendants claim three categories of costs: (1) costs for deposition transcripts, (2) witness fees, and (3) copy costs. See Bill of Costs (Dckt. No. 386). In total, Defendants claim costs in the amount of $25,083.86. Id. Cage objects to Defendants’ bill of costs on two grounds. As a general matter, Cage argues that the Court should not impose costs because he is unable to pay those costs now or in

the future. See Pl.’s Resp. to Defs.’ Bill of Costs (“Pl.’s Resp.”), at 2–3 (Dckt. No. 391). Then, Cage drills down into the requests themselves, arguing that the costs are unreasonable. Id. at 3– 10. I. Inability to Pay Cage begins with an overarching argument about his inability to pay. As he sees it, he shouldn’t have to pay, because he can’t pay. Under Rule 54(d), a prevailing party is presumptively entitled to costs. But the same rule also “generally grants a federal court discretion to refuse to tax costs in favor of the prevailing party.” Crawford Fitting Co. v. J. T. Gibbons, Inc., 482 U.S. 437, 442 (1987). An inability to pay is one of the reasons that a court can take into account when deciding whether to tax costs. See Rivera v. City of Chicago, 469 F.3d 631, 636 (7th Cir. 2006). Courts often walk through a two-step process. For starters, “the non-prevailing party must show a present and future inability to pay costs, supported by an affidavit and documentary evidence of income and liabilities.” McDonald v. Henze, 2022 WL 2785203, at *3 (N.D. Ill. 2022). And

then, the district court has the discretion to reduce the amount of costs or deny costs altogether, “considering the amount of the costs, the non-prevailing party’s good faith in bringing the claims, and the difficulty of the issues raised.” Id. “No one factor is determinative, but the district court should provide an explanation for its decision to award or deny costs.” Rivera, 469 F.3d at 635–36. Cage has demonstrated an inability to pay. He submitted an affidavit swearing that he has faced unemployment for five years, and now relies solely on $2,500 in monthly retirement benefits to cover living expenses. See Patrick Cage Aff., at ¶¶ 3–4 (Dckt. No. 391-1). On the other side of the ledger, Cage faces massive debt. He owes $200,000 in legal fees, $60,000 in

credit card debt, and $150,000 in other loans. Id. at ¶¶ 5–6. He is late in paying over $60,000 toward his home mortgage. Id. at ¶ 7. That’s not a lot of income, and a lot of debt. Even so, shifting costs to the prevailing party based on the inability of the losing party to pay has its downsides. Someone has to pay the costs, and it is hard to see why the prevailing party should pay the entire tab of winning. Letting a litigant off the hook for costs that they impose – but can’t afford – would reduce the incentive to pursue meritorious claims.

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