434 F. App'x 232
4th Cir.2011Background
- Ellis sued Grant Thornton for negligent misrepresentation under West Virginia law; district court awarded Ellis $2,419,233 after bench trial.
- On appeal, this court reversed for lack of sufficient proof; mandate included a $7,026.25 cost award to Grant Thornton.
- Remand followed; Grant Thornton sought $68,983.70 in district court costs, including the mandated $7,026.25, plus trial transcript and supersedeas bond costs.
- The Clerk taxed $68,983.70 against Ellis; Ellis moved for Rule 54(d)(1) review; district court later denied all costs.
- District court reasoned that denying costs would not unduly harm due to Ellis’s finances and the case’s close/difficult issues; good faith acknowledged.
- This court vacates in part and remands: reinstates $7,026.25 as costs; declines to award the remaining $61,957.45.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May the district court tax the appellate-mandated costs against Ellis? | Ellis argues the mandate requires costing Grant Thornton $7,026.25. | Grant Thornton asserts the full amount sought is permissible under Rule 54(d)(1). | Yes, district court must tax $7,026.25. |
| Was it an abuse of discretion to deny the remaining costs ($61,957.45)? | Ellis contends costs should be awarded given the close/difficult issues and equity. | Grant Thornton argues district court properly weighed the factors and declined costs. | No abuse; district court properly denied the remaining costs. |
Key Cases Cited
- Invention Submission Corp. v. Dudas, 413 F.3d 411 (4th Cir. 2005) (mandate rule generally forbids district court from relitigating mandate issues)
- Teague v. Bakker, 35 F.3d 978 (4th Cir. 1994) (factors supporting denial of costs include closeness and equities)
- Cherry v. Champion International Corp., 186 F.3d 442 (4th Cir. 1999) (presumption of costs to prevailing party; need good reason to deny)