Otay Mesa Property, L.P. v. United States
127 Fed. Cl. 146
| Fed. Cl. | 2016Background
- Otay Mesa Property, L.P. prevailed in a Fifth Amendment taking action after multiple trials and two Federal Circuit appeals; final judgment (including interest) was entered in Plaintiffs’ favor on June 5, 2015.
- Plaintiffs filed a Bill of Costs seeking $85,242.82 (later reduced by plaintiffs to $69,227.95) under RCFC 54(d) and 28 U.S.C. §§ 1821, 1920.
- The Clerk’s Office identified unsupported items and the Court ordered supplemental submissions; parties briefed objections and replies.
- The Court evaluated requested categories: clerk fees, reporter/transcript fees, witness fees (travel, attendance, subsistence), duplication/printing, deposition transcript costs, and other trial-related costs.
- The Court disallowed certain appellate filing/printing costs because the Federal Circuit ordered each party to bear its own costs on appeal, disallowed duplicative subsistence charges previously recovered in attorneys’ fees, and reduced costs attributable to the period of limited success by 40%.
- After adjustments and the downward reduction for limited success (40% for costs incurred before March 19, 2012), the Court taxed total costs of $38,716.71 to the United States.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Recoverability of clerk filing fees (district & appellate) | Filing fees are taxable as §1920(1) costs; appellate filing fees should be recoverable because plaintiffs prevailed overall | Appellate filing fees should be disallowed because Federal Circuit ordered each party to bear its own costs on appeal | Allowed $750 for district filing fees; disallowed $910 for appellate filing fees per appellate orders |
| Reporter/transcript fees for trials | All requested transcripts (including electronic/condensed copies and delivery) were necessary and reasonable given case complexity | Additional/expedited formats or delivery must be justified and may be for counsel convenience | Allowed full $18,117.30 for reporter/trial transcripts (electronic formats deemed necessary) |
| Witness fees (travel, attendance, subsistence) for party representative David Wick | Travel, attendance ($40/day), and subsistence are taxable under §§1821 and 1920(3) for appearance days | Party representatives generally not entitled to travel except when testifying; unnecessary parking/hotel charges should be disallowed | Allowed $907.41 total (airfare, modest parking/mileage, attendance fees, limited subsistence); disallowed charges where hotel proximate or previously recovered |
| Duplication/printing costs (including appellate briefs) | Printing exhibits, trial binders, discovery copies, and appellate briefs were necessary and taxable under §1920(4) | Printing costs for appeals should be disallowed because appellate courts ordered each party bear own costs; some entries lack documentation | Allowed $15,495.80 for duplication but disallowed amounts related to appeals and undocumented items |
| Deposition costs (transcripts, appearance/per diem) | Costs for 44 depositions (transcripts, expedited shipping, appearance fees for government witnesses) were necessary and supported by invoices | Extra/copy formats and expedited charges should be justified; some costs for convenience may be non-taxable | Allowed full $27,028.22 for deposition-related costs (including expedited transcripts and appearance fees) |
| Other discovery/trial-related costs & downward reduction for limited success | Modest shipping and exhibit-prep costs were necessary; no further reduction warranted beyond attorneys’ fee order | Government sought a 40% reduction of taxed costs consistent with prior 40% reduction of attorneys’ fees and litigation expenses | Allowed $1,729.12 as other costs; applied 40% reduction to costs incurred before March 19, 2012, and taxed $38,716.71 total after reductions |
Key Cases Cited
- Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437 (Court may tax costs under 28 U.S.C. §1920)
- Chore-Time Equip., Inc. v. Cumberland Corp., 713 F.2d 774 (Fed. Cir. 1983) (transcript costs taxable if necessary and reasonable)
- West Wind Africa Line, Ltd. v. Corpus Christi Marine Servs. Co., 834 F.2d 1232 (5th Cir. 1988) (travel expenses taxable for witnesses attending proceedings)
- Fogleman v. ARAMCO, 920 F.2d 278 (5th Cir. 1991) (duplication costs taxable for documents necessarily obtained)
- First Fed. Sav. & Loan Ass’n of Rochester v. United States, 88 Fed. Cl. 572 (electronic/condensed transcript formats may be necessary, not just convenience)
- Dalles Irrigation Dist. v. United States, 91 Fed. Cl. 689 (additional transcript copies, condensed formats, and premium delivery require necessity justification)
- Tempest Publ’g, Inc. v. Hacienda Records and Recording Studio, Inc., 141 F. Supp. 3d 712 (S.D. Tex. 2015) (broad discretion to ensure costs taxed equitably; reduce costs for limited success)
- Padgett v. Loventhal, 706 F.3d 1205 (9th Cir. 2013) (courts may reduce fees/costs where prevailing party had limited success)
- Reger v. Nemours Found., Inc., 599 F.3d 285 (3d Cir. 2010) (district court must articulate reasons when denying/reducing costs)