Surprise v. GTE Service Corp.

202 F.R.D. 79, 50 Fed. R. Serv. 3d 715, 2000 U.S. Dist. LEXIS 21374, 2000 WL 33407220
CourtDistrict Court, D. Connecticut
DecidedNovember 28, 2000
DocketNo. 3:98CV255 (JBA)
StatusPublished
Cited by3 cases

This text of 202 F.R.D. 79 (Surprise v. GTE Service Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Surprise v. GTE Service Corp., 202 F.R.D. 79, 50 Fed. R. Serv. 3d 715, 2000 U.S. Dist. LEXIS 21374, 2000 WL 33407220 (D. Conn. 2000).

Opinion

RULING ON PENDING MOTIONS

ARTERTON, District Judge.

Currently pending before the Court are plaintiff Ginsberg’s Motion for Protective Order [Doc. #47], plaintiff Ginsberg’s Motion to Dismiss Age Discrimination Claim [Doc. # 50] and plaintiff Ginsberg’s Motion to Remand [Doc. # 51].

I. Motion to Dismiss [Doc. # 50]

Plaintiff Ginsberg moves under Fed. R.Civ.P. 41(a)(2) to dismiss Count 4 of his complaint, the Age Discrimination in Employment Act claim, with prejudice and without costs to any party. Defendant GTE Service Corporation does not oppose the dismissal of Count 4, but claims that it is entitled to costs under Fed.R.Civ.P. 54(d) as the “prevailing party.”

A. “Prevailing Party” under Rule 5k(d)

Rule 54(d) provides that “[e]xcept 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 of course to the prevailing party unless the court otherwise directs.... ”

In Nemeroff v. Abelson, 620 F.2d 339, 350 (2d Cir.1980), the Second Circuit stated that “generally the defendant is not considered the prevailing party when, as here, there is a voluntary dismissal of the action by the plaintiff with prejudice.” GTE argues that this statement is not binding on this Court because (1) it was dictum; (2) the case involved a stipulation of dismissal; and (3) the sole case cited by the court in Nemeroff in support of that proposition now has been overruled, and other circuits since have held that a defendant in GTE’s position is a prevailing party for purposes of Rule 54(d). For the reasons discussed below, the Court is persuaded that GTE’s position is correct.

[81]*81The precise holding in Nemeroff was that costs were appropriately imposed under Rule 54 where the parties had stipulated to a dismissal in which the defendants expressly reserved the right to move for costs, although, the court noted “generally” a defendant is not a prevailing party where there has been a dismissal with prejudice. See id. at 350. The Second Circuit gave no reasoning to support the “general rule” that it set forth, and since Nemeroff has not analyzed whether or why a voluntary dismissal with prejudice by the plaintiff entitles the defendant to costs under Rule 54(d). However, other courts within the Second Circuit have found that defendants are the prevailing parties where there has been a dismissal by the plaintiff in related contexts. See, e.g., Fernandez v. Southside Hospital, 593 F.Supp. 840, 842-43 (E.D.N.Y.1984) (defendants can be prevailing parties for purposes of attorneys fees award where there has been dismissal without prejudice depending on circumstances surrounding dismissal, such as “where the complaint is clearly frivolous or there have been proceedings on the merits or substantial discovery”); Reaemco, Inc. v. Allegheny Airlines, 496 F.Supp. 546, 549 n. 2 (S.D.N.Y.1980) (awarding costs to defendant as prevailing party after plaintiff consented to dismissal of defendant).

As defendant GTE notes, all the circuit courts that have considered the question have concluded that a defendant is the prevailing party for purposes of Rule 54(d) costs where there has been a voluntary dismissal with prejudice of plaintiffs claims. See, e.g., Schwarz v. Folloder, 767 F.2d 125, 131 (5th Cir.1985) (“Because a dismissal with prejudice is tantamount to a judgment on the merits, the defendant in this case ... is clearly the prevailing party and should ordinarily be entitled to costs.”); Cantrell v. International Brotherhood of Electrical Workers, AFL—CIO, 69 F.3d 456, 458 (10th Cir. 1995); Kollsman v. Cohen, 996 F.2d 702, 706 (4th Cir.1993); Sheets v. Yamaha Motors, 891 F.2d 533, 539 (5th Cir.1990); Zenith Ins. Co. v. Breslaw, 108 F.3d 205, 207 (9th Cir. 1997). Further, Mobile Poiver Enterprises, Inc. v. Power Vac, Inc., 496 F.2d 1311 (10th Cir.1974), the sole case relied upon by the Nemeroff court, now has been overruled. See Cantrell, 69 F.3d at 458. As the Cantrell court and others have commented, the Mobile Power holding that a defendant was entitled to recover costs where a plaintiff dismissed without prejudice but not if the dismissal was with prejudice was illogical. See, e.g., id.; Schwarz, 767 F.2d at 131 n. 8. Moreover, as the Cantrell court noted, the Mobile Power court appears to have misread the case it cited in support of its holding. See Cantrell, 69 F.3d at 458.

In light of these developments in the case law, and because the rule described in Nem-eroff was both dicta and relied on reasoning and precedent that has since been repudiated, this Court finds that GTE is a prevailing party under Fed.R.Civ.P. 54(d).

B. Imposition of costs

Under Rule 54(d), the Court may deny costs “upon a showing that such an award would be inequitable.” DLC Management Corp. v. Town of Hyde Park, 45 F.Supp.2d 314, 315 (S.D.N.Y.1999). “‘It is well-settled that under [Rule] 54(d), the awarding of costs is discretionary with the trial judge.’ ” Remington Prods., Inc. v. North American Philips, Corp., 763 F.Supp. 683, 686 (D.Conn.1991) (quoting McDonnell v. American Leduc Petroleums, Ltd., 456 F.2d 1170, 1188 (2d Cir.1972)). Although there “is a presumption in favor of awarding costs to the prevailing party,” Remington Prods., 763 F.Supp. at 686, a district court may deny costs if (1) it states the reasons for the denial to allow review by an appellate court for abuse of discretion and (2) the unsuccessful party shows some circumstances sufficient to overcome the presumption. See id. (citations omitted). Relevant factors in determining whether to award costs include the plaintiffs good faith in bringing the suit, see DLC Management Corp., 45 F.Supp.2d at 316; the plaintiffs indigency or financial hardship, see County of Suffolk v. Secretary of the Interior, 76 F.R.D. 469, 473 (E.D.N.Y.1977); and bad faith or misconduct by the prevailing party during the litigation, see Remington Prods., 763 F.Supp. at 687.

[82]*82Plaintiff Ginsberg has moved to dismiss his age discrimination claim because “discovery has not revealed sufficient ádditional evidence of age discrimination to warrant Mr.

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202 F.R.D. 79, 50 Fed. R. Serv. 3d 715, 2000 U.S. Dist. LEXIS 21374, 2000 WL 33407220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/surprise-v-gte-service-corp-ctd-2000.