Rock River Communications, Inc. v. Universal Music Group

276 F.R.D. 633, 2011 WL 5452970, 2011 U.S. Dist. LEXIS 152812
CourtDistrict Court, C.D. California
DecidedAugust 31, 2011
DocketNo. CV 08-0635 CAS (AJWx)
StatusPublished
Cited by5 cases

This text of 276 F.R.D. 633 (Rock River Communications, Inc. v. Universal Music Group) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rock River Communications, Inc. v. Universal Music Group, 276 F.R.D. 633, 2011 WL 5452970, 2011 U.S. Dist. LEXIS 152812 (C.D. Cal. 2011).

Opinion

ORDER REGARDING PLAINTIFF’S MOTION TO RECOVER EXPERT DEPOSITION COSTS

ANDREW J. WISTRICH, United States Magistrate Judge.

Defendant already has compensated plaintiff for the time plaintiffs experts spent testifying during their depositions. By this motion, plaintiff seeks to recover from defendant additional expert fees incurred for the following deposition-related activities: (1) time an expert spent preparing for the expert’s deposition; (2) time an expert spent reviewing and correcting the transcript of the expert’s deposition; and (3) time an expert spent traveling to and from the expert’s deposition. At issue is time devoted to these types of activities by the following experts retained by plaintiff: Karl Schulze, Art Jaeger, Tag Gross, Jeff Rougvie, and Mark Spicer.

The relevant rule provides: “Unless manifest injustice would result, the court must require that the party seeking discovery: (i) pay the expert a reasonable fee for time spent in responding to discovery under Rule 26(b)(4)(A) or (D)....” Fed.R.Civ.P. 26(b)(4)(E)®. The relevant Advisory Committee Note adds: “Concerns regarding the expense of such depositions should be mitigated by the fact that the expert’s fees for [635]*635the deposition will ordinarily be borne by the party taking the deposition.” Advisory Committee Note to 1993 Amendments to Fed. R.Civ.P. 26. The Advisory Committee Note also says: “The requirement ... of a complete and detailed report of the expected testimony of certain forensic experts may, moreover, eliminate the need for some such depositions or at least reduce the length of the depositions.” Advisory Committee Note to 1993 Amendment to Fed.R.Civ.P. 26.

The Advisory Committee Note’s use of the phrase “for the deposition” suggests that the shifting of expert fees is limited to the fees attributable to the deposition itself. Such an interpretation would require denial of this motion in its entirety. Because the language of the Advisory Committee Note arguably could be construed differently, however, more thorough analysis is warranted.

1. Transcript Review and Correction

Plaintiff has cited no authority for the proposition that the deposing party must pay for time an expert spent reviewing or correcting his or her deposition transcript. Courts that have considered this issue usually have rejected any such notion. See, e.g., Patterson Farm, Inc. v. City of Britton, 22 F.Supp.2d 1085, 1096 (D.S.D.1998); but see Underhill Investment Corp. v. Fixed Income Discount Advisory Co., 540 F.Supp.2d 528, 539 (D.Del.2008). As the court in Patterson Farm, Inc., explained:

“[I]f the party seeking the deposition were always required to pay for the time spent by the deponent reviewing and making changes to the deposition transcript, expert witnesses would be encouraged to review the transcript in every deposition regardless of the necessity of such an action.... If such costs were borne by the expert witness or by the party who retained him or her, the decision to request the review would be made with greater consideration rather than simply as an act to force the party seeking the deposition to pay additional expenses.”

Patterson Farm, Inc., 22 F.Supp.2d at 1096. This is wise. Although a deponent has the right to review and correct the transcript of his or her deposition testimony, see Fed. R.Civ.P. 30(e)(1), he or she is not obliged to do so, even if the deposing party requests it. See generally Advisory Committee Note to 1993 Amendment to Fed.R.Civ.P. 30 (“If review is requested, the deponent will be allowed 30 days to review the transcript and to indicate any changes in form or substance.”).

One court has suggested that “if the deposition transcription indicates that the deposing party strongly encouraged the deponent to review the transcript so as to reduce that party’s costs or to benefit its case in some way, then the relevant costs should be paid by the party seeking the deposition.” Patterson Farm, Inc., 22 F.Supp.2d at 1096. There is, of course, no need for such a rule. Since a deponent (including an expert) cannot be forced to review the transcript of his or her deposition for the benefit of the deposing party, he or she can simply decline to do so unless the deposing party agrees to pay for the time required to conduct such a review. In addition, since it is difficult to imagine how the deposing party would benefit from the undertaking, such requests are likely to be infrequent.

2. Preparation

Several courts have concluded that the deposing party should pay for the time an expert spent preparing for his or her deposition, see, e.g., Schmidt v. Solis, 272 F.R.D. 1, 3 (D.D.C.2010); Borel v. Chevron U.S.A. Inc., 265 F.R.D. 275, 277 (E.D.La. 2010) (recognizing that federal courts “are split” on whether expert fees attributable to deposition preparation time can be shifted to the deposing party, concluding that “a slim majority” permits it, and collecting cases). Other courts have reached the opposite conclusion. See, e.g., SM Co. v. Kanbar, 2007 WL 2972921, *3 (N.D.Cal.2007) (noting “persuasive authority which states that ordinarily the deposing party need only pay for time spent in deposition” absent extenuating circumstances). The latter view is more sound. Although it is true that most lawyers are likely to insist that their experts spend some time preparing for a deposition, see Schmidt, [636]*636272 F.R.D. at 3 1 and that a well-prepared expert’s deposition may proceed more efficiently, see Hose v. Chicago & N.W. Transp. Co., 154 F.R.D. 222, 228 (S.D.Iowa 1994) (suggesting that the deposing party would ultimately absorb the cost of the expert’s preparation by having to wait while the expert refreshed his memory during the deposition), there are countervailing concerns.

One concern is that the deposing party has no control over how much time an expert spends preparing for a deposition. The amount of time an expert devotes to deposition preparation depends on the philosophy of the expert and retaining counsel. Some lawyers might ask an expert to briefly reread his or her report, while others might demand that he or she devote several days to deposition preparation. The latter might insist that the expert review not only his report, but also all of the underlying facts and data, study the report and deposition testimony of his or her counterpart expert, participate in extensive mock direct and cross-examination, and so on. Shifting expert fees for deposition preparation creates what economists call an externality: the retaining party determines how much deposition preparation it deems desirable, but the deposing party pays for it. When benefit and cost are separated like this, the risk of unfairness is great. Some courts have tried to ameliorate this difficulty by limiting the amount of shiftable preparation time to the duration of the deposition. While this mitigates the risk of unfairness, it also is completely arbitrary.

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Cite This Page — Counsel Stack

Bluebook (online)
276 F.R.D. 633, 2011 WL 5452970, 2011 U.S. Dist. LEXIS 152812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rock-river-communications-inc-v-universal-music-group-cacd-2011.