J.T. Gibbons, Inc. v. Crawford Fitting Co.

102 F.R.D. 73
District Court, E.D. Louisiana·Decided April 5, 1984·No. Civ. No. 79-1127·Published·Cited by 10 cases

Opinion

MEMORANDUM OPINION

PALMIERI, Senior District Judge.*

I. BACKGROUND

These cross motions deal with the allowance and disallowance of costs in an antitrust action. The action in question, brought under sections one and two of the Sherman Act, was tried to a jury from November 2, 1981, to November 19, 1981. At the end of the entire case, a directed verdict was entered in favor of defendants on all of plaintiff’s claims. Defendants’ counterclaim for malicious prosecution, alleging that plaintiff’s suit was part of a scheme to wrongfully extort a distributorship from defendant Crawford Fitting Co. (“Crawford”), was submitted to the jury. The jury returned a verdict in favor of plaintiff on the counterclaim.1 On November 24, 1981, judgment was entered dismissing plaintiff's complaint with costs to defendants and dismissing the counterclaim without costs. On December 28, 1981, defendants’ motion for judgment notwithstanding the verdict or new trial on the counterclaim was denied.2

On May 9, 1983, the Fifth Circuit unanimously affirmed this Court’s rulings in all respects. J.T. Gibbons v. Crawford Fitting Co., 704 F.2d 787 (5th Cir.1983). The deadline for petitioning the United States Supreme Court for writs of certiorari passed without the filing of a petition by any party on August 8, 1983, and the judgment entered on November 24, 1981, in defendants’ favor became final.

On November 30, 1983, defendant Crawford, on behalf of all defendants, filed its bill of costs, together with a supporting memorandum and documentation. At a hearing before the Clerk of the Court for the Eastern District of Louisiana on December 9, 1983, at which no one appeared on behalf of plaintiff, all costs requested by defendants were taxed with the exception of expert witness fees and attorneys’ fees and expenses incurred in connection with a discovery trip to Scotland. The total costs taxed were $57,480.70. The amount of costs denied was $150,480.70.

On December 15, 1983, plaintiff filed a motion to review costs. Plaintiff’s motion [76] requests the setting aside of the full amount of costs taxed against it on the grounds (1) that the award of costs was barred under the doctrine of res judicata and collateral estoppel and (2) that defendants’ bill of costs was not timely filed. In addition, plaintiff specifically challenges the costs taxed by the clerk for charts, audio-visual aids and transcripts.

On December 16, 1983, defendants filed a motion for review of costs, requesting this Court to exercise its discretion to award the costs denied by the clerk.

II. DISCUSSION

A. Plaintiffs Motion for Review of Costs

1. Res judicata and collateral estoppel

Plaintiff contends that principles of res judicata and collateral estoppel preclude the awarding of any costs to defendants. Plaintiff claims that the amount sought by defendants as costs was included in defendants’ $1,760,000 claim for damages in the counterclaim. Since the jury found against the defendants on the counterclaim, plaintiff argues that defendants may not now “relitigate” the issue of their entitlement to these costs. Plaintiff’s argument is frivolous.

In the judgment entered on November 24, 1981, and the decision granting defendants’ motion for directed verdict filed on December 4, 1981, this Court dismissed plaintiff’s complaint and exercised its discretion under Fed.R.Civ.P. 54(d) to award defendants the costs incurred in defending a legally baseless antitrust suit. Nothing in the decision denying defendants’ motion for judgment notwithstanding the verdict on the counterclaim contradicted this directive. In effect, plaintiff now asserts that this Court erred in granting defendants their costs in the main case.

Plaintiff’s brief is repleat with decisions enumerating the general principles of res judicata and collateral estoppel. Not one of these decisions applies the doctrines of res judicata or collateral estoppel to deny a litigant its costs. The reason for this is that the doctrines of res judicata and collateral estoppel have no applicability to the issue of costs.

It is true that the doctrine of res judicata precludes a litigant from relitigating issues that were or could have been raised in an earlier action. Here, however, defendants are not “relitigating” anything. No new lawsuit has been filed. Defendants have simply filed a bill of costs pursuant this Court’s order, entered under Fed. R.Civ.P. 54(d), allowing the defendants their costs in the antitrust action. The principles of res judicata have no applicability under such circumstances.

Defendants have not “split” any cause of action. Nothing precluded defendants from excluding the amount requested as costs from the counterclaim and claiming this amount in a separate bill of costs. Moreover, this court is aware of no reason why defendants could not have refrained from filing a counterclaim, collected their costs upon the successful conclusion of the antitrust action and then filed a malicious prosecution lawsuit against plaintiff for their other expenses. The fact that defendants chose to include their demand for costs, as well as other expenses, in their counterclaim, upon which the jury found against them, does not deprive defendants of their entitlement to a discretionary award of costs under Fed.R.Civ.P. 54(d) in the main case. The jury had no power to deprive defendants of this right.3 Additionally, it is noteworthy that the damages sought by the defendants on their counterclaim far exceeded any costs in the case. They sought reimbursement of legal expenses incurred by them up to that point and which exceeded one and one-half million dollars.

In short, plaintiff’s contention that principles of res judicata and collateral estoppel [77] preclude an award of any costs to defendants in this case is nothing short of frivolous.

2. Timeliness of bill of costs

Plaintiff claims that defendants’ delay in filing its bill of costs completely bars taxation of costs against plaintiff. Plaintiff argues that to permit defendants to recover costs now would violate the directive of Fed.R.Civ.P. 1 that the Federal Rules “be construed to secure the just, speedy, and inexpensive determination of every action.” (Emphasis added). Plaintiff further contends that it has been prejudiced by the filing of the bill of costs at this time.

Judgment was entered in this case on November 24, 1981. The Fifth Circuit rendered its opinion of affirmance on May 9, 1983, and the deadline for the filing of a petition for certiorari passed on August 8, 1983. The bill of costs herein was filed on November 30, 1983.

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J.T. Gibbons, Inc. v. Crawford Fitting Co., 102 F.R.D. 73 (E.D. La. 1984).

102 F.R.D. 73 (J.T. Gibbons, Inc. v. Crawford Fitting Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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