Dawn M. McIlveen v. Stone Container Corp.

910 F.2d 1581, 1990 U.S. App. LEXIS 15214, 1990 WL 124045
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 28, 1990
Docket88-1778
StatusPublished
Cited by59 cases

This text of 910 F.2d 1581 (Dawn M. McIlveen v. Stone Container Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dawn M. McIlveen v. Stone Container Corp., 910 F.2d 1581, 1990 U.S. App. LEXIS 15214, 1990 WL 124045 (7th Cir. 1990).

Opinion

PER CURIAM.

Dawn Mcllveen filed an ERISA action in district court against Stone Container Corporation. After a bench trial, the judge entered judgment for Stone and dismissed the action with costs. Stone filed its Bill of Costs, which the district court granted in part. Stone appeals the partial denial of its costs.

In reviewing a district court’s decision to grant or deny costs to a prevailing party under Fed.R.Civ.P. 54(d) and 28 U.S.C. § 1920, we will reverse the district court’s determination on the reasonableness and necessity of the expenses only for an abuse of discretion. Weihaupt v. American Medical Ass’n, 874 F.2d 419, 430 (7th Cir.1989); Illinois v. Sangamo Constr. Co., 657 F.2d 855, 864 (7th Cir.1981).

In Gardner v. Southern Railway Systems, 675 F.2d 949, 954 (7th Cir.1982), we remanded for findings on the disallowance of costs, because the district court had failed to explain its denial of the bill of costs. We stated that

*1583 ‘[wjhen a trial court refuses to award costs to a prevailing party, it should state its reason for such disallowance. Unless an appellate court knows why a trial court refused to award costs to the prevailing party, it has no real basis upon which to judge whether the trial court acted within the proper confines of its discretion. Walters v. Roadway Exp., Inc., 557 F.2d 521 (5th Cir.1977).’

675 F.2d at 954 (emphasis in original) (quoting Serna v. Manzano, 616 F.2d 1165, 1168 (10th Cir.1980)). In SK Hand Tool Corp. v. Dresser Industries, Inc., 852 F.2d 936, 945 (7th Cir.1988), cert. denied, — U.S. -, 109 S.Ct. 3241, 106 L.Ed.2d 589 (1989), we stated that to “facilitate our review of contested costs awards, we ask the district courts, in the future, to explain in some detail how they arrived at amounts they consider to be reasonable.” Similarly, in Weihaupt, 874 F.2d at 430-31, we remanded for a hearing and determination by the district court as to whether the costs at issue were allowable and reasonable. We reasoned that

the district court merely restated Wei-haupt’s objection to the AMA’s bill of costs and concluded that the AMA was entitled to recover its costs in the requested amounts from Weihaupt. The court failed to make any findings on, and thus we are unable to review, whether the expenses the AMA labeled ‘costs incidents to depositions’ and ‘fees for exemplification and photocopying’ were allowable, much less determine whether they were reasonable in amount and necessary to the litigation.

Id.

The district judge in the present case explained the partial disallowance of costs by stating:

Plaintiff's objections to defendants’ bill of costs are sustained. There was utterly no reason to order the trial testimony transcribed. The Yianna deposition expenses were unnecessary as were his trial testimony expenses. Photocopies of court filings are not recoverable. Neither is computerized research. Costs are approved in the amount of $1314.10. Judgment is entered accordingly.

The most immediate problem with the district court’s judgment is that we are unable to decipher how the court arrived at the figure of $1314.10, and what figures it used for each disallowance. Stone’s Bill of Costs requested a total of $4,799.80. 1 The district court disallowed the transcription of the trial testimony ($1,468), specific deposition expenses ($571.35), certain trial testimony expenses ($120, $253, $184, $75.50, $339), photocopies of court filings ($27.90), and computerized research ($313). 2 These figures yield a total cost award of $1448.05. It is, therefore, difficult to calculate the exact disallowances included in the district court’s partial denial of costs.

Further, even if one could discern with certainty the overall calculation scheme used by the district court, we have not been supplied with detailed findings regarding the reasonableness and necessity of the trial testimony and deposition disallowanc-es. Appellant challenges the determination that these costs were unnecessary, and it is a difficult task for us to determine whether the court abused its discretion on these determinations given the scope of the findings.

Nevertheless, on occasion we have independently reviewed the district court record to make the determination of whether costs were reasonable and necessary to the litigation. In Allen & O’Hara Inc. v. Barrett Wrecking, Inc., 898 F.2d 512, 517 (7th Cir.1990), we held that, while a written explanation for the district court’s denial of costs would have been helpful, the court’s failure to provide such an explanation did not require reversal because the court “was clearly within its discretion.” In Mary Beth G. v. City of Chicago, 723 F.2d *1584 1263, 1282 (7th Cir.1983), although we were unable to review the decision regarding reasonableness of the costs because of the district court’s lack of findings, after examining all the facts presented, we determined that the requested costs were reasonable and necessary. Similarly, in this case, in view of the abbreviated findings by the trial judge, the relatively modest difference between the sums involved, and the interests of judicial economy, we have chosen to conduct an examination of whether the district court’s denial of costs was an abuse of discretion rather than remand for a futher explanation.

The analysis we are required to undertake when a district court advances such a limited basis for its denial of costs is clearly one better suited for the trial judge, given his or her first-hand familiarity with the facts of the case. Accordingly, we again strongly request district courts to specify the costs which are being disallowed in greater detail than was offered here, and to provide factual findings to support those disallowances which are based on a finding of unreasonableness or a lack of necessity to the litigation.

After reviewing the district court record in detail, we affirm the district judge’s partial denial of costs. The district court found unnecessary the expenses associated with obtaining a transcript of the trial testimony. We do not believe the district court abused its discretion in making that determination. Although such transcripts need not actually be used at trial to be considered “reasonably necessary for use in the case,” Sangamo Constr.

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Cite This Page — Counsel Stack

Bluebook (online)
910 F.2d 1581, 1990 U.S. App. LEXIS 15214, 1990 WL 124045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dawn-m-mcilveen-v-stone-container-corp-ca7-1990.