Salem Financial, Inc. v. United States, 134 Fed. Cl. 544

Salem Financial sued the United States in a complex tax refund case; after appeal and remand the Court entered final judgment for the Government and allowed the Government to seek taxable costs under RCFC 54(d).
The Government filed a Bill of Costs seeking $250,660.31 (later reduced to $245,692.75) for reporter fees, witness fees, duplication, and deposition-related costs.
Salem objected to various items as unnecessary or for counsel convenience (e.g., daily transcripts, expert attendance on non-testimony days, videography and realtime deposition services, and electronic hyperlinked briefs).
The Court evaluated whether each category was a "necessary litigation expense" and whether amounts were reasonable under 28 U.S.C. §§ 1821 and 1920 and applicable precedent.
The Court allowed reporter fees ($51,871.05), witness fees ($42,759.48), duplication for trial exhibits and copier rental ($30,380.52), and most deposition transcription costs ($62,649.44); disallowed electronic briefs ($12,635.00), most videography not used at trial, and realtime deposition services.
Total costs taxed in favor of the Government: $187,660.49.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Taxability of trial transcripts and delivery charges	Daily and premium-format transcripts were unnecessary and for convenience	Daily transcripts and mandatory delivery fees were necessary given 21-day complex trial	Allowed full $51,871.05 for trial and non-trial transcripts and delivery fees
Witness travel/attendance/subsistence for experts viewing non-testimony days	Expert attendance on non-testimony days was strategic convenience; costs only for days they testified	Experts needed to observe trial daily to provide accurate, complete testimony	Allowed full $42,759.48 for travel, attendance, and subsistence, including viewing days
Duplication costs: exhibit binders, copier rental, and electronic hyperlinked briefs	Objected to a fifth binder cost and electronic briefs as unnecessary	Requested four binder sets and electronic hyperlinked briefs to aid court navigation	Allowed $30,380.52 for four sets and copier rental; disallowed $12,635 for electronic briefs
Deposition-related costs: transcripts, videography, realtime services	Videography and realtime services were unnecessary except for depositions used at trial	Claimed videography for 58 depositions and realtime for 22 as necessary for critical depositions	Allowed $62,649.44 for transcription costs and videography for 11 videotaped depositions admitted at trial; disallowed remaining videography and all realtime costs

Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437 (taxation of costs governed by statute and Rule) (discusses limits on taxable costs)
Chore-Time Equip., Inc. v. Cumberland Corp., 713 F.2d 774 (Fed. Cir.) (criteria for taxing transcript costs)
Fogleman v. ARAMCO, 920 F.2d 278 (5th Cir.) (duplication costs taxable when necessary)
West Wind Africa Line, Ltd. v. Corpus Christi Marine Servs. Co., 834 F.2d 1232 (5th Cir.) (taxability of witness travel expenses)
First Fed. Sav. & Loan Ass’n of Rochester v. United States, 88 Fed. Cl. 572 (trial transcript formats and necessity)
Otay Mesa Prop., L.P. v. United States, 127 Fed. Cl. 146 (discretion in awarding costs; trial transcript and deposition cost guidance)
Dalles Irrigation Dist. v. United States, 91 Fed. Cl. 689 (limitations on taxing premium transcript formats and delivery)
F. Friedlander v. Nims, 583 F. Supp. (presumption that documents filed with the court were necessarily obtained for use)