National Organization for Wome v. Joseph Scheidler

750 F.3d 696, 2014 WL 1677999, 2014 U.S. App. LEXIS 8110
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 29, 2014
Docket13-2197
StatusPublished
Cited by22 cases

This text of 750 F.3d 696 (National Organization for Wome v. Joseph Scheidler) 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
National Organization for Wome v. Joseph Scheidler, 750 F.3d 696, 2014 WL 1677999, 2014 U.S. App. LEXIS 8110 (7th Cir. 2014).

Opinion

EASTERBROOK, Circuit Judge.

This suit began 28 years ago and has been to the Supreme Court three times. National Organization for Women, Inc. v. Scheidler, 510 U.S. 249, 114 S.Ct. 798, 127 L.Ed.2d 99 (1994); Scheidler v. National Organization for Women, Inc., 537 U.S. 393, 123 S.Ct. 1057, 154 L.Ed.2d 991 (2003); Scheidler v. National Organization for Women, Inc., 547 U.S. 9, 126 S.Ct. 1264, 164 L.Ed.2d 10 (2006). All defendants who stuck it out to the end (some settled) prevailed across the board. They applied for costs under 28 U.S.C. § 1920 and were awarded most of what they sought — but not until District Judge Coar held the re-quest under advisement for three years and then retired, after which the case was transferred to District Judge Norgle. He awarded a total $63,391.45, modest for a suit that entailed discovery, a long trial, many motions in the district court, and appellate proceedings that span a generation. The costs amount to less than $2,300 per year of litigation.

Plaintiffs dispute some of the district judge’s decisions about particular items, but we do not perceive either a clear error of fact or an abuse of discretion and have no more to say about those matters. Plaintiffs also offer three reasons why defendants should get nothing: (1) they took too long to request costs; (2) they did not establish that the transcripts and copies were “necessarily obtained for use in the case” as § 1920 requires; and (3) they did *698 not nudge Judge Coar to rule before he retired. We consider these in turn.

1. Final judgment was entered on May 14, 2007. Defendants filed a timely motion under Fed.R.Civ.P. 59 to amend the judgment; they also asked for more time to file a bill of costs, telling the judge that the length and complexity of the case, and the need to coordinate among the many defendants, justified additional time. Judge Coar did not act on that motion. Defendants then filed a bill of costs on July 14 — one day late, unless the Rule 59 motion itself extended the time. Instead of deciding what effect the Rule 59 motion had, Judge Coar entered an order on July 19 accepting the belated filing. N.D. Ill. Local Rule 54.3 requires parties seeking costs to follow up by conferring with other litigants to see what disputes can be resolved without judicial action. Defendants asked for extensions; the last of these ran through October 1, and defendants filed the Local Rule 54.3 statement that day.

Judge Norgle concluded that these events entitle defendants to a ruling. A district judge may accept untimely filings — Fed. R. Civ. P. 54(d), which governs costs, is not among the few that create non-extendable time limits — and appellate review is deferential. See, e.g., Pioneer Investment Services Co. v. Brunswick Associates L.P., 507 U.S. 380, 113 S.Ct. 1489, 128 L.Ed.2d 74 (1993). Not that an extension was necessary. A timely motion under Rule 59 suspends the judgment’s finality, see Fed. R.App. P. 4(a)(4), which means that the time to file the bill of costs did not begin to run until the district judge resolved the Rule 59 motion. Judge Coar did not do that until August 22, 2007, when he granted defendants’ motion and fixed the problems in the initial judgment. The bill of costs filed on July 14 was early, not late. And the Local Rule 54.3 statement was timely.

2. Plaintiffs contend that defendants did not adequately prove what costs they had incurred. Although § 1920 refers to papers “necessarily obtained for use in the case”, it does not define “necessarily”. Nor does Rule 54(d), which creates an informal process under which the clerk of court awards costs, subject to judicial review by a dissatisfied party. But 28 U.S.C. § 1924 provides that the party seeking costs must verify the claim by “an affidavit, made by himself or by his duly authorized attorney or agent having knowledge of the facts, that such item is correct and has been necessarily incurred in the case and that the services for which fees have been charged were actually and necessarily performed.” Defendants did exactly that, using the statutory formula. Plaintiffs insist that this is not enough.

Why not? No statute or rule requires more. Parts of plaintiffs’ brief propose that the affidavit go through the record to demonstrate why each transcript, and perhaps even each copy of any document, was necessary. That would be preposterous. Copies are made for pennies a page. Having a lawyer devote the time necessary to demonstrate the necessity of each transcript and every copy of a document would be far more costly than the copying itself. No sensible legal system requires parties to waste $60 of lawyers’ time to explain spending $6 on making a copy of something. At oral argument plaintiffs denied that they are arguing for a document-by-document demonstration of necessity, but they did not supply an intermediate position between the general § 1924 affidavit and a document-specific explanation.

If by “necessarily” § 1920 me ant something like “indispensably,” then perhaps there would be no alternative to a document-specific inquiry. But in law the word

*699 “necessary” often does not live up to the impression it conveys to lay readers. See, e.g., McCulloch v. Maryland, 4 Wheat. 316, 4 L.Ed. 579 (1819) (discussing the Constitution’s “necessary and proper” clause).We have understood § 1920 as requiring no more than that the transcripts or copies be reasonably and prudently obtained — which depends on how things seemed when the expenditures were made, without the benefit of hindsight. See, e.g., Majeske v. Chicago, 218 F.3d 816, 825 (7th Cir.2000); Hudson v. Nabisco Brands, Inc., 758 F.2d 1237, 1243-44 (7th Cir.1985). When our litigants ordered transcripts and made copies, they were defending against a claim for treble damages under RICO plus a demand for a sweeping injunction. And they verified the reasonableness of these outlays by paying themselves, knowing that they would have to bear every penny unless they won in the end. Hindsight tells us that the defendants could have won without much of the evidence they produced, because the Supreme Court eventually deemed plaintiffs’ legal theories to be deficient. But this circuit had held otherwise; the Supreme Court reversed us three times. The initial reversal set aside an order in defendants’ favor.

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750 F.3d 696, 2014 WL 1677999, 2014 U.S. App. LEXIS 8110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-organization-for-wome-v-joseph-scheidler-ca7-2014.