Sun Media Systems, Inc. v. KDSM, LLC

587 F. Supp. 2d 1059, 2008 U.S. Dist. LEXIS 96850, 2008 WL 4969159
District Court, S.D. Iowa·Decided November 24, 2008·No. 4:06-cr-00106·Published·Cited by 11 cases

Opinion

ORDER

ROBERT W. PRATT, Chief Judge.

Before the Court is Defendants’ Motion for Attorney Fees and Costs. Clerk’s No. 89. Plaintiff filed a resistance to the motion (Clerk’s No. 94), and Defendants replied (Clerk’s No. 95). The matter is fully submitted.

I. PROCEDURAL BACKGROUND

On or about March 16, 2006, Sun Media filed a Complaint in the present action. Clerk’s No. 1. Sun Media filed an Amended Complaint on December 8, 2006 (Clerk’s No. 23), and filed a Second Amended Complaint on August 21, 2007. Clerk’s No. 40. In the Second Amended Complaint, Sun Media asserted the following four claims against Defendants KDSM, LLC (“KDSM”) and Sinclair Broadcast Group, Inc. (“Sinclair”) (collectively “Defendants”): 1) copyright infringement against both Defendants; 2) breach of contract against KDSM; 3) misappropriation of trade secrets against KDSM; and 4) misappropriation of trade secrets against Sinclair. Id. On November 1, 2007, Defendants filed a Motion for Summary Judgment on all counts of Plaintiffs Second Amended Complaint. Clerk’s No. 54. On July 1, 2008, the Court entered an Order granting Defendants’ Motion for Summary Judgment. Clerk’s No. 84. Plaintiff filed a Motion for Reconsideration of the Court’s Order granting summary judgment on July 11, 2008. Clerk’s No. 86. *1063 The Court denied the Motion for Reconsideration on September 10, 2008. Clerk’s No. 96.

II. LAW AND ANALYSIS

Defendants assert that the Court should award costs and attorneys’ fees in Defendants’ favor in the amount of $412,512.60. 1 As authority for such an award, Defendants cite Federal Rule of Civil Procedure 54(d), 28 U.S.C. § 1920, Iowa Code § 550, and 17 U.S.C. § 505.

A. Costs

Federal Rule of Civil Procedure 54(d)(1) provides:

Except when express provision therefor is made either in a statute of the United States or in these rules, costs other than attorneys’ fees shall be allowed as a matter of course to the prevailing party unless the court otherwise directs.... Such 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.

Fed.R.Civ.P. 54(d)(1). Regarding permissible costs, 28 U.S.C. § 1920 provides:

A judge or clerk of any court of the United States may tax as costs the following:

(1) Fees 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.
A bill of costs shall be filed in the case and, upon allowance, included in the judgment or decree.

28 U.S.C. § 1920.

The Eighth Circuit Court of Appeals has found that the district court enjoys relatively broad discretion, “so long as it does not act arbitrarily,” in awarding costs under Rule 54 and § 1920. See Concord Boat Corp. v. Brunswick Corp., 309 F.3d 494, 498 (8th Cir.2002); Hibbs v. K-Mart Corp., 870 F.2d 435, 443 (8th Cir.1989) (emphasizing that both § 1920 and Rule 54 are phrased in permissive terms) (citing Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437, 107 S.Ct. 2494, 96 L.Ed.2d 385 (1987) (“Section 1920 ... is phrased permissively because Rule 54(d) generally grants a federal court discretion to refuse to tax costs in favor of the prevailing party.”)). Despite this discretion, “[w]hen an expense is taxable as a cost ... there is a strong presumption that a prevailing party shall recover it ‘in full measure.’ The ‘losing party bears the burden of making the showing that an award is inequitable under the circumstances.’ ” Concord Boat, 309 F.3d at 498 (quoting In re Paoli 221 F.3d 449, 462-63 (3d Cir.2000)).

Defendants requested costs total $57,164.60, which includes $542.96 for in-house photocopy charges; $13,580.64 for photocopy charges incurred with Lex Business Solutions; $1,627.16 in federal express/UPS charges ($1,406.96 by out-of-state counsel and $220.20 by local counsel); *1064 $789.08 in Westlaw charges; $9,768.03 in attorney travel expenses; $8,105.76 in deposition reporter expenses; $22,600.97 in expert fees; and $150.00 for pro hac vice admissions. The Court will address each item in turn.

Defendants first request costs for copies ($542.96 for in-house copies and $13,580.64 for vendor copies) and for Federal Express and UPS charges ($1,627.16). While it is not clear that all of the claimed copying expenses were necessarily obtained for use in the ease within the meaning of 28 U.S.C. § 1920(4), Plaintiff does not raise an objection that the expenses for copying and shipping were somehow unnecessary. Rather, Plaintiff cites a case from the Eastern District of Pennsylvania for the proposition that “such costs as postage and attorney travel are generally* considered noncompensable operating or overhead expenses.” Pl.’s Resistance Br. at 4 (citing Bly v. Banbury Books, Inc., 638 F.Supp. 983, 989 (E.D.Pa.1986)). Bly, however, was considering an award of costs exclusively under 17 U.S.C. § 505, not under Federal Rule of Civil Procedure 54(d)(1) and 28 U.S.C. § 1920

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Sun Media Systems, Inc. v. KDSM, LLC, 587 F. Supp. 2d 1059, 2008 U.S. Dist. LEXIS 96850, 2008 WL 4969159 (S.D. Iowa 2008).

587 F. Supp. 2d 1059 (Sun Media Systems, Inc. v. KDSM, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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