Gochis v. Allstate Insurance

162 F.R.D. 248, 1995 U.S. Dist. LEXIS 8938, 1995 WL 378808
CourtDistrict Court, D. Massachusetts
DecidedJune 14, 1995
DocketCiv. A. No. 90-12553-WGY
StatusPublished
Cited by8 cases

This text of 162 F.R.D. 248 (Gochis v. Allstate Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gochis v. Allstate Insurance, 162 F.R.D. 248, 1995 U.S. Dist. LEXIS 8938, 1995 WL 378808 (D. Mass. 1995).

Opinion

MEMORANDUM AND ORDER

WILLIAM G. YOUNG, District Judge.

It has been said that disputes in academia are especially bitter because the stakes are so small.1 So too with parties to completed litigation skirmishing over the only remaining scraps left on the battlefield: costs.

In this ease, the defendant, Allstate Insurance Company (“Allstate”), prevailed on the merits and sought to recover its costs. After an award of substantially less than the full amount sought and a trip to the First Circuit, Allstate returns to claim the fruits of its victory. Allstate is not, however, entitled to all the reimbursement it seeks.

I. Background

Seventy-six former insurance sales agents (the “Agents”) brought suit in 1990 challenging the compensation policies of their employer, Allstate. Three more agents were added to the plaintiffs’ roster in November of 1991. The Agents claimed breaches of their employment contracts and the implied covenant of good faith and fair dealing, as well as violations of the Massachusetts Consumer Protection Act, Mass.Gen.L. ch. 93A. After extensive discovery, Allstate filed two summary judgment motions, prevailed on both, and judgment entered for Allstate on all claims. The Agents’ appeal was dismissed on procedural grounds, but the First Circuit noted that it would have affirmed the decision below on the merits. Gochis v. Allstate Ins. Co., 16 F.3d 12, 16 n. 8 (1st Cir.1994).

Allstate then filed a Bill of Costs in the amount of $25,499.01, the largest elements of which were $19,866.85 in deposition-related expenses and $4,859.86 in photocopying charges.2 Allstate sought transcription fees and delivery charges for each of forty-nine deposition transcripts (involving thirty deponents) and the copying costs charged to Allstate for documents produced by the Agents. The Courtroom Deputy Clerk, pursuant to the authority granted her by 28 U.S.C. § 1920, disallowed the deposition and copying costs, but allowed the remainder of the Bill in the amount of $772.30, which the Agents paid. This Court agreed on the ground that the case had been decided on a point of law. Unsatisfied, Allstate appealed. The First Circuit vacated the judgment and remanded for reconsideration as to whether Allstate was entitled to a greater reimbursement. The court of appeals disagreed with the conclusion that Allstate’s victory was predicated on a single point of law, but did not reverse the judgment because “if some, but not all, of the depositions and copies have proven clearly unnecessary, irrelevant, or cumulative, we lack the exposure and vantage point of the trial judge to make such a discriminating determination.” Gochis v. Allstate Ins. Co., 43 F.3d 1456 (1st Cir.1994) (per curiam).

Pursuant to the First Circuit’s order, Allstate then filed a Supplementary Bill of [250]*250Costs (the “Supplementary Bill”) requiring this Court to make such a “discriminating determination.” Allstate now seeks taxation of the deposition and copying expenses earlier denied, as well as $1,955.80 for its successful appeal, for a total of $26,682.51. The Court hereby allows in part and denies in part the Supplementary Bill for the reasons set forth below.

II. Discussion

A. The Legal Standard

The assessment (“taxation”) of costs is governed by the tandem operation of a federal statute, 28 U.S.C. section 1920,3 and Rule 54(d)(1) of the Federal Rules of Civil Procedure, which provides that “costs other than attorneys’ fees shall be allowed as of course to the prevailing party unless the court otherwise directs.” Section 1920 supplies the proper definition of the term “costs” in the rule and restricts the district court’s ability to assess costs beyond those listed in the statute. Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437, 441-42, 107 S.Ct. 2494, 2497, 96 L.Ed.2d 385 (1987); In re San Juan Dupont Plaza Hotel Fire Lit., 994 F.2d 956, 962 (1st Cir.1993). The only discretion retained by the court is the power “to decline to tax, as costs, the items enumerated in § 1920.” Crawford, 482 U.S. at 442, 107 S.Ct. at 2497. The awarding of costs is not mandatory and is left to the sound discretion of the district court. Heddinger v. Ashford Memorial Community. Hosp., 734 F.2d 81, 86 (1st Cir.1984).

The precise contours of the power to decline to tax costs have yet to be determined in this circuit. See San Juan, 994 F.2d at 963 (First Circuit “has been more muted both about a district judge’s duty to explain a denial of costs and about the reasons that may warrant such a denial.”). Where the basis for the denial of costs is “readily apparent,” no explanation is required, but in other cases, the district court is obligated to make “some statement” justifying its denial of costs. Id. Although other appellate courts have detailed broad categories of circumstances justifying the denial of costs, see, e.g., White & White, Inc. v. American Hospital Supply Corp., 786 F.2d 728, 730 (6th Cir.1986) (denial of costs proper where taxable expenditures by prevailing party are “unnecessary or unreasonably large”; where prevailing party unnecessarily prolonged the trial or injected unmeritorious issues; where recovery is so insignificant that the judgment amounts to a victory for the losing party; and where case is “close and difficult”); Burroughs v. Hills, 741 F.2d 1525, 1542 (7th Cir.1984), cert. denied sub nom. Burroughs v. Pierce, 471 U.S. 1099, 105 S.Ct. 2321, 85 L.Ed.2d 840 (1985) (denial of costs proper only where losing party indigent or prevailing party guilty of “some fault, misconduct, default, or other action worthy of penalty”), such is not the case here. Rather, a district court in the First Circuit has long possessed broad discretion to deny costs as long as it “offers a sound reason” for doing so. San Juan, 994 F.2d at 964; Leeds & Northrwp Co. v. Doble Eng’g Co., 41 F.Supp. 951, 951-52 (D.Mass.1941) (Brewster, J.). The Court is, of course, guided further by the views expressed by the Court of Appeals in its remand of this case.

Allstate characterizes the issues now before the Court as 1) whether the discovery was “reasonably appropriate” when taken, and 2) whether its conduct warranted the “penalty” of disallowance. Both are off the mark.

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Bluebook (online)
162 F.R.D. 248, 1995 U.S. Dist. LEXIS 8938, 1995 WL 378808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gochis-v-allstate-insurance-mad-1995.