On October 26, 2010, Chief Judge Fitzwater issued an opinion in Arrieta v. Yellow Transportation, Inc., an employment discrimination case currently pending in the Northern District of Texas (pdf of opinion located here). Plaintiffs Arrieta and Calip were unsuccessful in their lawsuit against Yellow Transportation, Inc. (“YTI”). YTI then sought its costs. Chief Judge Fitzwater’s opinion focused on whether certain costs were appropriately taxable pursuant to 128 U.S.C. § 1920.
Chief Judge Fitzwater first rejected plaintiffs’ argument that YTI was not entitled to any costs:
As a prevailing party in a civil action, YTI is entitled to recover its taxable costs “unless . . . a court order provides otherwise.” Fed. R. Civ. P. 54(d)(1).1 “Rule 54(d)(1) contains a strong presumption that the prevailing party will be awarded costs.” Pacheco v. Mineta, 448 F.3d 783, 793 (5th Cir. 2006) (citing Schwarz v. Folloder, 767 F.2d 125, 131 (5th Cir. 1985)). “Indeed, [the Fifth Circuit] has held that ‘the prevailing party is prima facie entitled to costs,’ and has described the denial of costs as ‘in the nature of a penalty.’ Id. at 793-94 (quoting Schwarz, 767 F.2d at 131). “As a result of this cost-shifting presumption, the general discretion conferred by Rule 54(d)(1) has been circumscribed by the judicially-created condition that a court ‘may neither deny nor reduce a prevailing party’s request for cost without first articulating some good reason for doing so.’” Id. at 794 (quoting Schwarz, 767 F.2d at 131).
Chief Judge Fitzwater then found that YTI had established that approximately $7,000 in costs were recoverable for daily trial transcripts, as they were necessarily obtained for use in the case (as opposed to primarily obtained for convenience). But Chief Judge Fitzwater rejected the amounts submitted by YTI for exhibit production costs ($1,550), as “[a]bsent pretrial approval of the exhibits . . . a party may not later request taxation of the production costs to its opponent.” La. Pwr. & Light Co. v. Kellstrom, 50 F.3d 319, 335 (5th Cir. 1995) (per curiam). Chief Judge Fitzwater found that, “[b]ecause YTI did not obtain pretrial authorization for the costs of producing the exhibits at issue, the court sustains [plaintiffs’] objection and disallows $1,550 for these costs.” Finally, Chief Judge Fitzwater allowed approximately $10,000 in travel fees for three witnesses, finding that the testimony of these witnesses was necessary to YTI’s defenses, as it was necessary to bring them to trial (as opposed to simply using their deposition testimony) to establish their credibility.
Arietta and Calip are represented by Clinton Kelly, F. Dulin Kelly, and Andy Allman, of Kelly Kelly & Allman; and Christine Neill and Jane Byrne, of Neill & Byrne, PLLC.
Yellow Transportation, Inc. is represented by Richard Krumholz, Shauna Clark, Danielle Clarkson, and Jaclyn Hermes, all of Fulbright & Jaworski.
