S.G.C. v. Penn-Charlotte Associates

116 F.R.D. 284, 1987 U.S. Dist. LEXIS 4937
CourtDistrict Court, W.D. North Carolina
DecidedJune 10, 1987
DocketNo. C-C-85-623-P
StatusPublished
Cited by4 cases

This text of 116 F.R.D. 284 (S.G.C. v. Penn-Charlotte Associates) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S.G.C. v. Penn-Charlotte Associates, 116 F.R.D. 284, 1987 U.S. Dist. LEXIS 4937 (W.D.N.C. 1987).

Opinion

ORDER

ROBERT D. POTTER, Chief Judge.

THIS MATTER is before the Court on Plaintiff’s Petition for Payment of Costs, filed March 5, 1987, in the total amount of $18,537.49, and Defendants’ Petition for Payment of Costs, filed March 25, 1987, in the total amount of $3,341.50.

A brief was filed by Defendants on May 20, 1987. Plaintiff filed a reply brief on May 28, 1987.

In this case Plaintiff alleged that she was raped by an intruder in her apartment who was able to enter because of the negligence of Defendants in not providing proper security for her apartment. Plaintiff also asked for punitive damages. The trial commenced on January 16, 1987. At the conclusion of all the evidence, the Court dismissed the action as to one of Defendants, Penn-Charlotte Associates (“Penn-Charlotte”).

The only issue that the Court submitted to the jury was the issue as to negligence. The jury awarded Plaintiff the sum of Forty Thousand and 00/100 ($40,000.00) Dollars on January 23, 1987.

The Court is advised that on December 31, 1986, Defendants’ counsel made a verbal offer to pay $55,000.00 to settle the claim and indicated that additional settlement funds could be obtained if there was any hope of a settlement. This was confirmed by letter dated January 5, 1987 from Defendants’ counsel to Plaintiff’s counsel.

The questions presented by Plaintiff's petition involve 28 U.S.C. § 1920 and Rules 54(d) and 68 of the Federal Rules of Civil Procedure.

28 U.S.C. § 1920 provides that a judge may tax costs as follows:

[286]*286(1) Fee of the Clerk and Marshal;
(2) Fees of the court reporter for all or any part of the stenographic transcript necessarily obtained for use in the case;
(3) Fees and disbursements for printing and witnesses;
(4) Fees for exemplification and copies of papers necessarily obtained for use in the case;
(5) Docket fees under Section 1923 of this Title;
(6) Compensation of court appointed experts, compensation of interpreters, and salaries, fees, expenses and costs of special interpretation services under Section 1828 of this Title. (Emphasis added.)

Rule 54(d) provides:

(d) Costs. Except when express provision therefor is made either in a statute of the United States or in these rules, costs shall be allowed as of course to the prevailing party unless the court otherwise directs____(Emphasis added.)

Rule 68 of the Federal Rules of Civil Procedure provides:

At any time more than 10 days before the trial begins, a party defending against a claim may serve upon an adverse party an offer to allow judgment to be taken against him for the money or property or to the effect specified in his offer, with costs then accrued.
If the judgment finally obtained by the offeree is not more favorable than the offer, the offeree must pay the costs incurred after the making of the offer

Thus, the first question to be decided by the Court is whether there was a Rule 68 offer of judgment made by Defendants.

Under Rule 5(b) of the Fed.R.Civ.P. service by mail is complete upon mailing. The letter from Defendants’ counsel to Plaintiff’s counsel was dated January 5, 1987, and without evidence to the contrary will be presumed to have been mailed the same day.

Plaintiff cites Maguire v. Federal Crop Ins. Corp., 9 F.R.D. 240, 242 (W.D.La.1949) affd. in part and rev’d. in part 181 F.2d 320 (CA 5 1950) for the proposition that defendants cannot “escape” paying the plaintiffs’ costs when the offer of judgment is not properly formalized, contending that the Supreme Court in Delta Air Lines v. August, 450 U.S. 346 (fn. 27), 101 S.Ct. 1146 (fn. 27), 67 L.Ed.2d 287 (1981) cited Maguire with complete approval.

The offer of settlement in the case at bar was a formal offer of settlement from Defendants’ attorney, when he stated:

... I was at the time and I still am in a position to offer you the sum of $55,-000.00 in settlement of the claim. I advised you that I could possibly obtain additional authority if there was any hope of settlement.

Plaintiff refused this and went to trial and received only $40,000.00, after insisting on payment of at least $750,000.00 as compensatory damages.

It is clear that Defendants’ attorney was making a formal and reasonable offer of settlement of at least $55,000.00 with an indication that the offer may be more, if Plaintiff were willing to make a realistic counter-offer. However, Plaintiff was adamant in demanding a completely unrealistic sum of $750,000.00, compensatory damages.

The language of Rule 68 is:

... a party defending against a claim ' may serve upon the adverse party an offer to allow judgment to be taken against him for the money or property or to the effect specified in his offer, with costs then accrued ...

In Marek v. Chesney, 473 U.S. 1, 105 S.Ct. 3012, 87 L.Ed.2d 1 (1985) the Supreme Court, on page 6, 105 S.Ct. on page 3015, states:

The critical feature of this part of the rule is that the offer be one that allows judgment to be taken against the defendant for both the damages caused by the challenged conduct and the costs [287]*287then accrued. In other words, the drafter’s concern was not so much with the particular components of offers, but with the judgments to be allowed against defendants. (Emphasis in original.)

Defendants’ attorney’s letter of January 5, 1987, did not constitute an “offer to allow judgment” to be taken against them.

However, Defendants’ attorney’s letter of January 5, 1987 was clearly a formal offer of settlement served more than ten days before trial. Furthermore, it was an offer manifestly in good faith and certainly had a reasonable relationship to the amount of damages involved.

The language of the Supreme Court in Delta Air Lines, Inc. v. August, 450 U.S. 346, at 352, 101 S.Ct. 1146, at 1150, 67 L.Ed.2d 287 (1981) indicates that Rule 68 could be interpreted to include a formal settlement offer. There, the Supreme Court said:

Our interpretation of the Rule is consistent with its purpose. The purpose of Rule 68 is to encourage the settlement of litigation.

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Cite This Page — Counsel Stack

Bluebook (online)
116 F.R.D. 284, 1987 U.S. Dist. LEXIS 4937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sgc-v-penn-charlotte-associates-ncwd-1987.