Grupo Petrotemex, S.A. DE C.V. v. Polymetrix AG

District Court, D. Minnesota·Decided April 5, 2021·No. 0:16-cv-02401·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Grupo Petrotemex, S.A. de C.V., and Case No. 16-cv-02401 (SRN/HB) DAK Americas LLC,

Plaintiffs, ORDER v.

Polymetrix AG,

Defendant.

Alexander Englehart, Eric W. Schweibenz, J. Derek Mason, and John F. Presper, Oblon, McClelland, Maier & Neustadt, LLP, 1940 Duke Street, Alexandria, VA 22314; and Margaret Rudolph, Norton Rose Fulbright US LLP, 60 South Sixth Street, Suite 3100, Minneapolis, MN 55402, for Plaintiffs.

Bernard E. Nodzon, Jr. and Lauren Marie Williams Steinhauser, Faegre Drinker Biddle & Reath LLP, 90 South Seventh Street, Suite 2200, Minneapolis, MN 55402; Igor Shoiket, Stephen H. Youtsey, and Todd A. Noah, Dergosits & Noah LLP, One Embarcadero Center, Suite 350, San Francisco, CA 94111, for Defendant.

SUSAN RICHARD NELSON, United States District Judge This matter is before the Court on the Objection to Bill of Costs [Doc. No. 864] filed by Plaintiffs Grupo Petrotemex, S.A. de C.V. and DAK Americas, LLC (collectively, “GPT/DAK”). Based on a review of the files, submissions, and proceedings herein, and for the reasons below, the Court OVERRULES the Objection in part, SUSTAINS the Objection in part, and GRANTS Defendant Polymetrix AG $42,846.60 in costs. I. DISCUSSION On February 4, 2021, this Court granted Polymetrix’s Motion for Summary Judgment and entered judgment in its favor. (Mem. Op. & Order [Doc. No. 859]; Judgment

[Doc. No. 860].) Subsequently, Polymetrix submitted a Bill of Costs [Doc. No. 864] requesting the Clerk of Court to tax $300 in Fees of the Clerk, and $45,899.70 in transcription costs for various hearings and depositions conducted during this litigation. GPT/DAK objected to the claim for transcription costs, on three bases. (See Obj. to Bill of Costs [Doc. No. 866].) First, GPT/DAK argue that the claimed transcription costs include

non-taxable costs like delivery charges and credit-card processing fees. Second, GPT/DAK assert that Polymetrix included fees for expedited processing of the transcripts, without an explanation for why expedited processing was necessary. Finally, GPT/DAK protested that the costs presented for the transcription of several depositions were not itemized, and argued that these costs should either be wholly excluded or reduced by 30% to account for

the likelihood that non-taxable costs were included in the figure. In total, GPT/DAK request that the Court deny $34,936.75 or, alternatively, $12,104.43 of Polymetrix’s claimed transcription costs. In response to GPT/DAK’s Objection, Polymetrix conceded that its Bill of Costs includes $2,055.91 in non-taxable delivery, credit-card processing, and real-time

transcription fees. (Response to Obj. to Bill of Costs [Doc. No. 867], at 2.) In addition, Polymetrix explained the need for its expedited processing costs, and submitted invoices itemizing the transcription costs for several depositions. (See Noah Decl. [Doc. No. 868].) Federal Rule of Civil Procedure 54(d) permits a district court to tax costs in favor of a prevailing party, and 28 U.S.C. § 1920 defines which expenses incurred during

litigation may be taxed pursuant to Rule 54(d). “Under § 1920, a judge or court clerk ‘may tax as costs’ fees of the clerk and marshal, fees for printed or electronically recorded transcripts necessarily obtained for use in the case, fees and disbursements for printing and witnesses, fees for copies of necessary papers, docket fees, and compensation of court appointed experts and interpreters.” Stanley v. Cottrell, Inc., 784 F.3d 454, 464 (8th Cir. 2015) (citing 28 U.S.C. §§ 1920(1)-(6)). The Court has “substantial discretion in awarding

costs to a prevailing party.” Zotos v. Lindbergh Sch. Dist., 121 F.3d 356, 363 (8th Cir. 1997) (quoting Richmond v. Southwire Co., 980 F.2d 518, 520 (8th Cir. 1992)). Where Polymetrix’s claimed transcription costs include a surcharge for expedited processing, Polymetrix must adequately explain the need for expedition. See Delgado v. Hajicek, No. CIV.07-2186 RHK/RLE, 2009 WL 2366558, at *3 (D. Minn. July 30, 2009)

(citations omitted) (“Fees for expedited transcripts are not taxable absent some explanation why expedition was necessary.”); D. Minn. Bill of Costs Guide 6 (2015), https://www.mnd.uscourts.gov/sites/mnd/files/forms/Bill-of-Costs-Guide.pdf (noting that the “[c]osts of expedited transcripts produced solely for the convenience of counsel” are not taxable, and “[t]he requesting party must provide an explanation as to why it was

necessary to have any transcript produced in an expedited manner.”). In addition, many of the invoices submitted by Polymetrix include costs for rough ASCII transcripts. “ASCII fees associated with the quick delivery of a rough transcript . . . are generally ‘incurred only for the convenience of counsel and thus are not properly awarded,’” but “ASCII fees can be collected when incurred out of necessity.” Sorin Grp. USA, Inc. v. St. Jude Med., S.C., Inc., No. CV 14-4023 (IRT/HB), 2017 WL 3503360, at *7 (D. Minn. Aug. 15, 2017) (citations omitted). If the Court finds that Polymetrix has not adequately explained why the use of expedited transcription services or a rough ASCII transcript was necessary—rather than merely convenient—the Court will deny those costs. And where the invoice does not clearly identify the portion of the transcription cost attributable to non-taxable expedited processing, the Court will exercise its discretion to reduce the amount by 20%. Cf Delgado, 2009 WL 2366558, at *3 (“Because the Court cannot discern the amount of the fee charged for expedited transcripts, it will exercise its discretion and reduce the amount sought by 20%.”). Because Polymetrix has submitted mvoices for the previously non-itemized transcription costs, the Court need not consider whether to wholly exclude or reduce those costs, as urged by GPT/DAK. In the table that follows, the Court addresses each item of claimed costs disputed by the parties. The table is organized according to the exhibit identifier used by the parties for the cost’s supporting documentation.

: Deduction Transcript Costs Hendley Deposition | Polymetrix admits that $55 must be deducted | $55 (Exhibit D) for non-taxable shipping and handling costs. The Court finds that no additional deductions are necessary. Lund Deposition Polymetrix admits that $55 must be deducted | $55 (Exhibit E) for non-taxable shipping and handling costs. The Court finds that no additional deductions are necessary.

ie | teem : Analysis from Claimed Transcript Costs June 4, 2018 Polymetrix claims $110.40 in transcription Hearing costs, which includes expedited processing. (Exhibit F) Polymetrix explains that expedited processing was “required to review Court’s bench rulings on 90-day jurisdictional discovery and supplemental briefing on motion to dismiss.” (Noah Decl. at 2.) The Court finds that Polymetrix has adequately justified the need for expedited processing of this transcript. July 19, 2018 Polymetnix claims $111.60 in transcription Hearing costs, which includes expedited processing. (Exhibit G) Polymetrix explains that expedited processing was “required to review Court’s rulings on IDR.” Ud.) The Court finds that Polymetrix has adequately justified the need for expedited processing of this transcript.

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Grupo Petrotemex, S.A. DE C.V. v. Polymetrix AG, (mnd 2021).

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