Multidata Systems International Corp. v. Zhu

107 S.W.3d 334, 2003 Mo. App. LEXIS 375
CourtMissouri Court of Appeals
DecidedMarch 18, 2003
DocketED 81552
StatusPublished
Cited by9 cases

This text of 107 S.W.3d 334 (Multidata Systems International Corp. v. Zhu) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Multidata Systems International Corp. v. Zhu, 107 S.W.3d 334, 2003 Mo. App. LEXIS 375 (Mo. Ct. App. 2003).

Opinion

CLIFFORD H. AHRENS, Judge.

Jingeng Zhu, Yan Hong Shen, and Richard Yike Gu, d/b/a Scientific Solution Group and Scientific Solution Group International Corporation (collectively referred to as “defendants”) appeal the judgment of the trial court granting Multidata Systems International Corporation (“plaintiff’) costs in the amount of $9,909.06. Defendants claim that the court had neither the authority nor the jurisdiction to award such costs. Additionally, defendants claim that plaintiffs request for such costs was frivolous and warranted sanctions. We affirm in part and reverse and remand in part.

Plaintiff filed a petition and motion for temporary restraining order and preliminary injunction against defendants, alleging breach of contract, misappropriation of trade secrets and trade dress infringement. Subsequently, plaintiff amended the petition to include an allegation of conspiracy to misappropriate trade secrets. On December 19, 2001, the court, with consent of the parties, entered a permanent injunction, order and judgment. In this judgment, the parties agreed that “[defendants shall pay court costs.” Thereafter, a bill of costs was submitted in the amount of $65.00 by the clerk of the court, and paid by defendants. On April 24, 2002, plaintiff submitted its bill of costs, requesting payment of a total of $13,853.74. Defendants filed objections to plaintiff’s bill of costs. Plaintiff filed a motion to assess costs which was called, heard and argued on July 3, 2002. The court took the matter under submission, and ordered plaintiff to submit a proposed order for costs. On July 11, 2002, plaintiff submitted its proposed order and judgment excluding certain costs originally included in plaintiffs bill of costs, and assessing costs against defendants in the amount of $9,909.06. The court adopted plaintiffs order and judgment the same day, awarding costs of $9,909.06 to plaintiff. Defendants filed a motion for sanctions and their notice of appeal on July 29, 2002.

In their first point on appeal, defendants argue that the trial court erred in awarding costs to plaintiff of $9,909.06 because costs may only be taxed where statutory authority exists to tax an item as costs. Defendants claim that the majority of *337 plaintiffs costs were not authorized by statute. Specifically at issue are expenses included for the depositions of Zhu and Steven Spencer (“Spencer”); service fees; and filing fee and third-party fees to Anderson Technologies, Inc. (“Anderson”). We note that in their brief, defendants present arguments concerning in-house copying expenses and miscellaneous expenses which were included in plaintiffs original bill of costs. These costs were not claimed in plaintiffs proposed order, and were not included in the judgment of the court; therefore, we do not need to consider them.

“The concept of ‘costs’ was created by statute, and not common law.” Starling v. Union Pacific R. Co., 22 S.W.3d 213, 216 (Mo.App.2000); (citing Wirken v. Miller, 978 S.W.2d 60, 63 (Mo.App.1998)). Therefore, courts may only award those costs which may be granted by virtue of express statutory authority. Id.

We first address the issue of the expenses incurred for the depositions of Zhu and Spencer. Section 492.590 RSMo (2000) 1 specifically provides for the award of costs and expenses of depositions. The statute also provides that the reporter taking the deposition shall certify the costs, and that the costs may be limited based upon the relevancy and probative value of the testimony of the deponent.

Defendants argue that the deposition of Spencer, who owned Advantage Engineering, Inc. (“Advantage”), was not relevant to the case. Advantage employed one of the individual defendants; however, it was not named as a party to the suit. Defendants assert that there was nothing to suggest that Advantage was involved in any business activity or any trade secrets of plaintiff.

“Generally, the propriety of discovery is a matter of trial court discretion, which appellate courts will not disturb except for abuse of that discretion.” In re Marriage of Hershewe, 931 S.W.2d 198, 201 (Mo.App.1996). Parties may obtain discovery concerning any relevant matter, which is not privileged. Id.; (citing Rule 56.01(b)(1)). Material can be considered relevant where it is “reasonably calculated to lead to the discovery of admissible evidence.” Id. In its order, the trial court specifically found the deposition of Spencer to be relevant to the issues in the case. As an employer of Gu, Spencer’s deposition was arguably relevant to investigate Gu’s activities at Advantage and the extent of his use of plaintiffs technology, if any, at Advantage. The trial court did not abuse its discretion in determining that Spencer’s deposition was relevant. Therefore, the court did not err in awarding the expense of Spencer’s deposition as costs.

Defendants challenge the deposition costs for both Zhu and Spencer, contending they were not certified by the court reporter as required by statute. Section 492.590 provides that the “costs and expenses so incurred shall be certified by the reporter taking the same.... ” Here, plaintiff filed check requests made by its attorneys to pay for the depositions and invoices for both depositions. However, plaintiff failed to file any certification from the court reporter taking the depositions. In Starling, the court considered a similar issue. At issue in Starling were costs assessed for certain depositions. Union Pacific provided the court with invoices that included information concerning the vendor’s name, the names of the witnesses and the amount for each deposition. However, Union Pacific faded to provide the court with certification from the person before whom the deposition was taken. *338 The court determined that these certifications were required for the court to assess costs for the depositions. Starling, 22 S.W.3d at 217. Here, it is necessary for plaintiff to file certifications from the court reporters before whom the depositions of Zhu and Spencer took place. On this issue, we remand the cause to the trial court to allow plaintiff to file certifications and for the court to assess the costs accordingly.

Next, we consider defendants’ argument that plaintiff is not entitled to recover the costs of a special process server, used to serve out-of-state defendants. Section 506.140 specifically provides that, “[a] party may file an application to the court requesting that any fees paid to a special process server be awarded in any judgment entered in the action. The court may enter judgment in the reasonable amount of such fees.” Defendants argue that the 1996 amendment of the statute, which substituted the words, “awarded in any judgment entered” for “taxed as costs,” indicates a legislative intent to rescind earlier statutory authority to award special process server fees as costs.

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Bluebook (online)
107 S.W.3d 334, 2003 Mo. App. LEXIS 375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/multidata-systems-international-corp-v-zhu-moctapp-2003.