Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-1_99-cv-05583/USCOURTS-caed-1_99-cv-05583-60/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1332 Diversity-Insurance Contract

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IN THE UNITED STATES DISTRICT COURT FOR THE

EASTERN DISTRICT OF CALIFORNIA

UNITED STATES FIDELITY & )

GUARANTY COMPANY, )

)

)

)

Plaintiff, )

)

vs. )

)

)

LEE INVESTMENTS LLC dba THE )

ISLAND, et al., )

)

)

Defendants. )

)

)

No. CV-F-99-5583 OWW/SMS

ORDER GRANTING IN PART AND

DENYING IN PART AON RISK

SERVICES, INC. OF CENTRAL

CALIFORNIA INSURANCE

SERVICES BILL OF COSTS (Doc.

701)

On March 9, 2007, following the entry on March 1, 2007 of

the Partial Judgment on Jury’s Verdicts Upon Multiple Claims

Involving Multiple Parties pursuant to Rule 54(b), Federal Rules

of Civil Procedure, (Doc. 681), Aon Risk Services, Inc. of

Central California Insurance Services (“Aon”) filed a bill of

costs. (Doc. 701). No objections to Aon’s bill of costs was

filed by Lee Investments LLC (“Lee”). 

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The “Judgement Pursuant to Rule 54(b), Federal Rules of Civil 1

Procedure,” filed on August 5, 2009 (Doc. 894), again awarded costs

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Aon seeks costs of $42,551.08, as follows:

Fees for service of summons $1,140.00

and subpoena

Fees of the court reporter $17,431.19

for all or any part of the 

transcript necessarily 

obtained for use in the case

Fees for witnesses $3,006.56

Fees for exemplification $10,609.33

and copies of papers 

necessarily obtained for use

in the case

Other costs $10,364.00

All costs are allowed, with the exception of “other costs.”

In support of the request for “other costs,” Matthew S.

Covington, counsel for Aon, avers:

6. The last section on page 4 of the

Memorandum of Costs lists ‘Other Costs’ which

include the costs of renting local office

space, costs for delivering files to the

local office, and Aon’s 1/3 portion of the

costs of the in-court electronic presenter

(Bryan Stanhill) whose services were used by

all parties at trial. These costs should be

allowed in the interests of justice as

provided by Local Rule 54-292(f)(11). During

the course of the trial, Lee took certain

positions and pursued certain legal tactics

which increased the length and complexity of

the Pre-Trial Order and the trial. For

example, the Pre-Trial Order ultimately

exceeded 200 pages and required several

hearings with the Court and multiple

conferences among counsel to deal with and

ultimately was not finalized and signed by

the Court until after the trial was

completed. Moreover, the jury unanimously

to Aon for the jury trial but declined to award costs to Aon for

the Court trial because Aon was not a prevailing party in the Court

trial.

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exonerated Aon of any wrongdoing in the case. 

by contrast, the jury found that Lee

intentionally and/or recklessly made a false

statement, or statements, to Aon. The jury

found that Aon relied on these statements (by

drafting a letter that ultimately became a

main focus of this lawsuit) and that Aon was

harmed thereby - by becoming embroiled in

this litigation through no fault of its own. 

For all these reasons, it is in the interests

of justice for Lee to reimburse Aon for the

small fraction of additional costs of suit

that Aon has listed in its Memorandum of

Costs.

The Court has no discretion to award these “other costs.” 

In Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437, 442

(1987), the Supreme Court held that, notwithstanding the district

court’s discretionary under Rule 54(b), Federal Rules of Civil

Procedure, to refuse to tax costs in favor of a prevailing party,

the district court may not rely on its equity power to tax costs

beyond those expressly authorized by 28 U.S.C. § 1920. 

Accordingly, Aon’s Bill of Costs is taxed at the amount of 

$32,187.08.

IT IS SO ORDERED.

Dated: August 2, 2010 /s/ Oliver W. Wanger 

668554 UNITED STATES DISTRICT JUDGE

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