Country Vintner of North Carolina, LLC v. E. & J. Gallo Winery, Inc.
2013 U.S. App. LEXIS 8629
4th Cir.2013Background
- Gallo appeals a district court bill of costs denying most ESI processing costs under 28 U.S.C. § 1920(4).
- District court allowed only conversion of native files to TIFF/PDF and transfer to CDs as taxable costs.
- Gallo sought $111,047.75 for ESI processing in six categories; clerk and other costs were separately contested.
- District court relied on Third Circuit Race Tires America to limit § 1920(4) recovery to copying-related tasks.
- Judge Davis’s panel affirms, holding § 1920(4) taxes only copying costs and not broader ESI processing or exemplification costs.
- The opinion discusses statutory history of § 1920 and its narrow interpretation for ESI expenses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 1920(4) covers ESI processing costs. | Gallo argues § 1920(4) includes all ESI processing. | Country Vintner argues only traditional copying costs are taxable. | No; only copying-related costs are taxable. |
| Whether ESI processing fees qualify as costs for exemplification. | Gallo contends loading and processing illustrate ESI features and qualify as exemplification. | Country Vintner contends such costs are not exemplification. | Not taxable as exemplification. |
| What is the correct scope of § 1920(4) after 2008 amendments? | Gallo seeks broad interpretation to include electronic processing. | Country Vintner urges narrow construction aligned with copying. | Statute limited to making copies; processing costs not included. |
Key Cases Cited
- Race Tires Am., Inc. v. Hoosier Racing Tire Corp., 674 F.3d 158 (3d Cir. 2012) (limits § 1920(4) to copying costs; pre-copying steps not taxable)
- In re Ricoh Co., Ltd. Patent Litig., 661 F.3d 1361 (Fed. Cir. 2011) (production costs may be taxable in specific agreed contexts)
- Taniguchi v. Kan. P. Saipan, Ltd., 132 S. Ct. 1997 (S. Ct. 2012) (costs are modest and § 1920 is narrow in scope)
- Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437 (1987) (Rule 54(d) costs framework and statutory boundaries)
- Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240 (1985) (history of § 1920; rigid cost controls)