Summit Technology, Inc. v. Nidek Co., Ltd

435 F.3d 1371, 77 U.S.P.Q. 2d (BNA) 1674, 2006 U.S. App. LEXIS 1845, 63 Fed. R. Serv. 3d 1162
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 26, 2006
Docket2005-1292
StatusPublished
Cited by32 cases

This text of 435 F.3d 1371 (Summit Technology, Inc. v. Nidek Co., Ltd) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Summit Technology, Inc. v. Nidek Co., Ltd, 435 F.3d 1371, 77 U.S.P.Q. 2d (BNA) 1674, 2006 U.S. App. LEXIS 1845, 63 Fed. R. Serv. 3d 1162 (Fed. Cir. 2006).

Opinion

BRYSON, Circuit Judge.

For the second time, we are asked to review the district court’s award of costs in this case. Because certain portions of the award were unsupported by evidence or were beyond the scope of statutorily allowed costs, we vacate certain portions of the award and direct that the award be reduced from $388,230.83 to $173,434.82.

I

After prevailing on the merits of the underlying patent infringement suit, Nidek submitted its bill of costs for $465,875.63. Summit challenged various components of that bill of costs. In response to that challenge, Nidek agreed that $13,434.06 of the claimed costs were improper and submitted a revised bill requesting $452,441.57. The district court, without explanation, awarded Nidek $257,660.13. Summit Tech., Inc. v. Nidek Co., No. 98-12611-EFH (D. Mass. June 16, 2004). Summit appealed that award, and Nidek cross-appealed. A panel of this court vacated the award and remanded for further proceedings, including a specification of findings. Summit Tech., Inc. v. Nidek Co., 117 Fed.Appx. 107,108 (Fed.Cir.2004). On remand, the district court held an evi- *1374 dentiary hearing, which consisted entirely of direct and cross-examination testimony by Neil B. Siegel, an attorney with the law firm of Sughrue Mion, PLLC. Mr. Siegel was lead trial counsel in the underlying suit, and he signed Nidek’s bill of costs. At that hearing, Nidek conceded that certain expenses claimed in its original bill of costs were either beyond the scope of 28 U.S.C. § 1920, which lists the expenses that may be taxed as costs under Federal Rule of Civil Procedure 54(d)(1), or were not related to the present litigation. Based on that concession, the district court reduced the award to $388,230.83, which was approximately $130,000 more than the court’s original award. 1 In its order, the district court stated that it found Mr. Sie-gel’s testimony to be “most credible and fully supported by the documentary evidence.” Summit appealed, challenging certain portions of the award pertaining to the preparation of trial exhibits, photocopy expenses, and deposition transcript expenses.

In response to Summit’s opening brief on appeal to this court, Nidek again conceded error, this time admitting that $15,635.25 of its photocopy expenses were for database development by an outside vendor, a cost that is clearly beyond the scope of section 1920. In addition to database development being non-taxable under section 1920, the line item for that expense was apparently double counted in Nidek’s original bill of costs. One of those line items was removed before this appeal, so the item is included — although still improperly — only once in the award presently before this court. At oral argument on appeal, Nidek further conceded that at least one deposition transcript expense (in the amount of $803.51) was double counted in the district court’s second award. Based on those errors, Nidek ultimately conceded that it was entitled to no more than $371,792.07.

II

Although a district court’s award of costs under Federal Rule of Civil Procedure 54(d)(1) is reviewed for abuse of discretion, the court’s discretion is limited to awarding costs that are within the scope of 28 U.S.C. § 1920. Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437, 445, 107 S.Ct. 2494, 96 L.Ed.2d 385 (1987). Section 1920 provides, in pertinent part, that the following costs may be taxed: “(2) Fees of the court reporter for all or any part of the stenographic transcript necessarily obtained for use in the case; ... [and] (4) Fees for exemplification and copies of papers necessarily obtained for use in the case .... ” Whether a particular expense may be recovered under section 1920 is an issue of statutory construction, subject to de novo review. See, e.g., Kohus v. Toys ‘R’ Us, Inc., 282 F.3d 1355, 1357 (Fed.Cir.2002); Whitfield v. Scully, 241 F.3d 264, 269 (2d Cir.2001); Russian River Watershed Prot. Comm. v. City of Santa Rosa, 142 F.3d 1136, 1144 (9th Cir.1998). Our interpretation of section 1920 in this case is governed by First Circuit law because this issue is one on which we defer to regional circuit law and because this case comes to us from a district court within the First Circuit. See Kohus, 282 F.3d at 1357.

A

Summit first argues that the district court erred by awarding Nidek *1375 $98,786.79 for fees paid to FTI Consulting, Inc. FTI assisted Nidek’s counsel in preparing trial exhibits, including computer animations, videos, Powerpoint presentations, and graphic illustrations. 2 Nidek argues that First Circuit law allows a district court to award costs related to preparing such trial exhibits if the court finds that the exhibits provided “real assistance to the court.” Summit, on the other hand, contends that such exhibits are neither “exemplification[s][nor] copies of papers necessarily obtained for use in the case,” 28 U.S.C. § 1920(4), and that the costs associated with preparing the exhibits are therefore not taxable as costs under Rule 54(d)(1). We agree with Summit.

In Kohus v. Toys ‘R’ Us, Inc., 282 F.3d 1355 (Fed.Cir.2002), this court rejected the broad interpretation of the term “exemplification” that Nidek offers here. The court looked instead to Black’s Law Dictionary, which defines “exemplification” as “[a]n official transcript of a public record, authenticated as a true copy for use as evidence.” Id. at 1359 (quoting Black’s Law Dictionary 593 (7th ed.1999)). Under that definition, we held that a video animation is not an “exemplification.”

The issue in Kohus was governed by Sixth Circuit law, and because the Sixth Circuit had never addressed the question whether video animations were within section 1920, our holding was framed in terms of “determining] how that circuit would likely resolve the issue.” Id. at 1358 n. 4 (quotation marks and citation omitted). We held that the Sixth Circuit’s reasoning in Swan Carburetor Co. v. Chrysler Corp., 149 F.2d 476

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
435 F.3d 1371, 77 U.S.P.Q. 2d (BNA) 1674, 2006 U.S. App. LEXIS 1845, 63 Fed. R. Serv. 3d 1162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/summit-technology-inc-v-nidek-co-ltd-cafc-2006.