Stachon v. Orville Hoxie & Haviland Products Co.

190 F. Supp. 185, 4 Fed. R. Serv. 2d 878, 1960 U.S. Dist. LEXIS 4695
CourtDistrict Court, W.D. Michigan
DecidedDecember 31, 1960
DocketCiv. A. 3531
StatusPublished
Cited by8 cases

This text of 190 F. Supp. 185 (Stachon v. Orville Hoxie & Haviland Products Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stachon v. Orville Hoxie & Haviland Products Co., 190 F. Supp. 185, 4 Fed. R. Serv. 2d 878, 1960 U.S. Dist. LEXIS 4695 (W.D. Mich. 1960).

Opinion

STARR, Chief Judge.

On May 18, 1960, the defendants filed objections to the taxing of court costs in plaintiff’s favor. They base their objections to the plaintiff’s bill of costs on the grounds: (1) That he recovered a verdict of less than $10,000; (2) that the court has not entered an order authorizing him to tax costs against the defendants; and (3) that the expense of taking the deposition of Dr. Mulder and the expense for a map and for photographs are not properly taxable as costs.

The court will first consider the question of whether the plaintiff should be permitted to tax any court costs against the defendants in this action. Title 28 U.S.C. § 1332(b) as amended in 1958 provides:

“Except when express provision therefor is otherwise made in a statute of the United States, where the *186 plaintiff who files the case originally in the Federal courts is finally adjudged to be entitled to recover less than the sum or value of $10,000, computed without regard to any set-off or counterclaim to which the defendant may be adjudged to be entitled, and exclusive of interest and costs, the district court may deny costs to the plaintiff and, in addition, may impose costs on the plaintiff.”

In the report of the Senate Committee on the Judiciary, 2 U.S. Code Congressional and Administrative News, 1958, p. 3099, it is stated:

“Subsection (b), like subsection (b) of section 1 of this bill (§ 1331 [b]) is also a provision aimed at deterring the filing of inflated claims made in order to bring the actions in the district courts. It, too, provides that where a plaintiff is finally adjudged to be entitled to less than $10,000, computed without regard to any setoff or counterclaim, the district court may either deny costs to the plaintiff or impose costs on the plaintiff.”

The report further states at page 3103:

“To make the $10,000 limitation a forceful one and to prevent inflated claims, the House Judiciary Committee has inserted a subsection permitting the trial judge to either withhold costs and/or impose costs on the plaintiff if the plaintiff fails to obtain a judgment for at least the jurisdictional amount. This provision will apply only to amounts determined by a verdict or a final judgment decided by the court; not to compromise agreements. In deciding whether to deny costs and/or impose costs on the plaintiff, the court will undoubtedly take into consideration whether the amount claimed was made in good faith or whether it was made simply to get into Federal court. It will also take into consideration the fact, if it be a fact, that the plaintiff's net recovery has been reduced by setoff or counterclaim, the validity of which the plaintiff contested in good faith.”

An evaluation of the objective manifestations of the legislative intent at the time the statute was enacted clearly indicates that the plaintiff’s right to tax costs should depend upon his good faith in claiming more than the jurisdictional amount provided in the statute.. Although no decision interpreting this-statute has been cited, the court concludes that § 1332(b) was intended to be applied only in cases where the plaintiff has obviously acted in bad faith in claiming over $10,000 in order to bring the action in a Federal court. The overall purpose of the 1958 amendment to §■ 1332 was to limit the number of diversity suits .which would be begun in the Federal courts, but there is no indication in the legislative history that it was intended as a whip to be used vindictively upon those who fail to recover the jurisdictional amount. Rather, it appears that the proper interpretation of § 1332(b) would make it inapplicable to those cases where the plaintiff in good faith made a claim for more than $10,000.

In his complaint in the present action the plaintiff claimed damages in the amount of $25,000 but obtained a jury verdict for only $8,000. However, from the evidence presented it appears that the plaintiff at the time he began the action could reasonably have expected to recover a verdict for the jurisdictional amount of more than $10,000. There is no showing whatever from which it could be concluded that the plaintiff acted in bad faith in claiming an amount in excess of the jurisdictional requirement. The court is convinced that the plaintiff’s claim for damages was made in good faith and not merely to give a Federal court jurisdiction. The court accordingly concludes that plaintiff is entitled to tax his proper court costs against the defendants.

The court will next consider the defendants’ objection to plaintiff’s taxing costs for the deposition of Dr. Mulder and for a map and photographs. Rule *187 54(d) of the Federal Rules of Civil Procedure, 28 U.S.C., provides:

“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 * * *. ' Costs may be taxed by the clerk on one day’s notice. On motion . served within 5 days thereafter, the . action of the clerk may be reviewed by the court.”

With reference to the taxing of the cost of depositions, Moore’s Federal Practice, 2d ed., ¶ 54.77 [4], p. 1359 et seq., states:

“The Rules are silent on the subject of taxing deposition expenses as costs; and the federal statutes are not too helpful. 28 U.S.C. §§ 1923 and 1920, which are framed in permissive terms, give the district court discretion to tax a nominal attorney’s docket fee of $2.50 for each deposition admitted in evidence. And § 1920 also contains other provisions of some relevance. But the (power to tax certain deposition expenses as costs can probably be Better supported as necessarily flowing from the authorization of the Federal Rules to take depositions extensively and to use them in a more limited manner. At any rate the power to tax as costs certain of the expenses of taking depositions is well settled, if the taking of the depositions was reasonably necessary, even though they may not have been used at the trial; but as with costs generally, the taxing of the prevailing-party’s deposition costs in his favor is a matter committed to the sound discretion of the trial court, which may deny some or all of such costs as the circumstances of the case warrant. The trial court’s exercise of discretion will normally not be interfered with by an appellate court.
“Part or all of a deposition; depending somewhat upon its use, is certainly reasonably necessary for use in the case where it is read into evidence in connection with some material matter; and may properly be treated as reasonably necessary, although not read into evidence, when it serves a real value in connection with cross-examination, but not when its use is rather trivial. * * *

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Cite This Page — Counsel Stack

Bluebook (online)
190 F. Supp. 185, 4 Fed. R. Serv. 2d 878, 1960 U.S. Dist. LEXIS 4695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stachon-v-orville-hoxie-haviland-products-co-miwd-1960.