Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-almb-2_07-ap-03018/USCOURTS-almb-2_07-ap-03018-0/pdf.json

Parties Involved:
Curtis C. Reding
Plaintiff
Sears Roebuck & Company
Defendant

Document Text:

1

 Fed. R. Civ. Proc. 54(d) “creates a strong presumption that the prevailing party

is entitled to recover costs under Rule 54(d).” 1 James Wm. Moore et al., Moore’s

Manual: Federal Practice and Procedure § 25.61, at 25-53 (2007). However, Fed. R.

Civ. Proc. 54(d) does not apply to bankruptcy proceedings. Fed. R. Bankr. Proc. 7054.

UNITED STATES BANKRUPTCY COURT

MIDDLE DISTRICT OF ALABAMA

In re Case No. 00-06393-DHW

Chapter 13

JAMES W. HENDERSON, JR.,

 Debtor.

CURTIS C. REDING, Trustee,

 Plaintiff, Adv. Pro. No. 07-3018-DHW

 v.

SEARS ROEBUCK & COMPANY,

 Defendant.

ORDER DENYING MOTION TO ALTER OR AMEND

DEFAULT JUDGMENT

The trustee filed a motion to alter or amend the default judgment to

include an award of costs in favor of the trustee, the prevailing party. The

trustee requests $485.00, the sum of the filing fees for reopening the chapter 13

case and the costs of filing this adversary proceeding.

The bankruptcy court has discretion to award costs to the prevailing party.

Fed. R. Bankr. Proc. 7054(b). This rule “does not create the presumption that

court costs shall be taxed.” 10 Lawrence P. King, Collier on Bankruptcy

¶ 7054.05, at 7054-8 (15th ed. rev. 2007).1

 The decision lies within the sound

discretion of the court. 

Case 07-03018 Doc 12 Filed 08/30/07 Entered 08/30/07 14:07:07 Desc Main

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2

 Even if the defendant had voluntarily repaid the funds before this adversary

proceeding was filed, the trustee would nevertheless have incurred the fee for

reopening the chapter 13 case to administer the funds.

The court concludes that it would be inequitable in the circumstances to

award costs to the trustee. This adversary proceeding seeks to recover money

which the trustee paid to the defendant in error during the pendency of the

chapter 13 case. Because the trustee’s mistake necessitated this adversary

proceeding, the court concludes that it would be inequitable to require the

defendant to bear the costs of rectifying the trustee’s error.2

Done this 29 day of August, 2007.

/s/ Dwight H. Williams, Jr.

United States Bankruptcy Judge

c: Curtis C. Reding, Trustee

 

Case 07-03018 Doc 12 Filed 08/30/07 Entered 08/30/07 14:07:07 Desc Main

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