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672 F.3d 1152
9th Cir.
2012
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Background

  • Otay Land Co. and Flat Rock brought federal CERCLA/RCRA and related state claims against United Enterprises and others.
  • The district court granted summary judgment on federal merits and declined ancillary state claims; later proceedings addressed costs under §1919 after remand.
  • On remand, the district court awarded United Enterprises costs for transcripts, witnesses, and service fees under §1919, implying a prevailing-party-like rationale.
  • This court previously vacated and remanded to determine whether §1919 costs were proper; on remand, the district court again awarded costs under §1919.
  • The Ninth Circuit vacated the cost award as misapplied and remanded to consider the just-costs standard under §1919, noting parallel state litigation and the discretion in §1919.
  • The case thus returns for a proper §1919 analysis of what constitutes “just costs,” not a presumption of award, with consideration of pending state proceedings.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
What qualifies as 'just costs' under §1919? Otay: costs must be fair, not presumptively awarded. United: costs incurred to defend are just. Just costs require discretionary, case-specific balancing, not a presumption.
Should parallel state litigation affect §1919 costs? Otay: pending state case makes federal costs speculative. United: parallel litigation can inform fairness. Parallel state actions may factor in but do not alone mandate deferral; remand proper.
Should §1919 costs mirror §1920 itemization or other statutes? Otay: §1919 is independent of §1920 enumerations. United: §1920 guidance helpful for itemization. §1919 governing standard is distinct; §1920 costs are not a substitute for ‘just costs.’
Is there a threshold 'exigency' requirement for §1919 awards? Otay: no extraordinary circumstances needed. United: exigent factors may inform fairness. No strict threshold; exigency are permissible but not required.

Key Cases Cited

  • Martin v. Franklin Capital Corp., 546 U.S. 132 (U.S. 2005) (removal-fee context; objective reasonableness informs fee awards and costs)
  • Miles v. California, 320 F.3d 986 (9th Cir. 2003) (§ 1919 discretionary; no presumption in favor of costs)
  • Signorile v. Quaker Oats Co., 499 F.2d 142 (7th Cir. 1974) (history of § 1919; origins of ‘just costs’)
  • Mansfield, C. & L.M. Ry. v. Swan, 111 U.S. 379 (1884) (foundational rule on costs when suit dismissed for lack of jurisdiction)
  • Callicrate v. Farmland Indus., Inc., 139 F.3d 1336 (10th Cir. 1998) (prematurity concern for costs when merits unresolved in parallel actions)
  • Ericsson GE Mobile Commc'ns v. Motorola Commc'ns & Elecs., 179 F.R.D. 328 (N.D. Ala. 1998) (considerations for awarding costs under §1919)
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Case Details

Case Name: Otay Land Co. v. UNITED ENTERPRISES LTD.
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Mar 14, 2012
Citations: 672 F.3d 1152; 2012 WL 833907; 74 ERC (BNA) 1321; 2012 U.S. App. LEXIS 5349; 10-55550
Docket Number: 10-55550
Court Abbreviation: 9th Cir.
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    Otay Land Co. v. UNITED ENTERPRISES LTD., 672 F.3d 1152