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Parties Involved:
Randell Parker
Plaintiff
Verlyn Gaines
Defendant

Document Text:

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NOT FOR PUBLICATION 

£ FILED 

SEP 302015 

UNITED STATES BANKRUPTCY COURT 

EASTERN DISTRICT OF CAUFORNIA 

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5 UNITED STATES BANKRUPTCY COURT 

EASTERN DISTRICT OF CALIFORNIA 

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In re Case No. 11-62509-A-7 

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Shaver Lakewoods Development, Inc. 

10 Debtor. 

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12 Randell Parker, Adv. No. 14-01076-A 

13 Plaintiff, KDG- 1 

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16 Verlyn Gaines, 

Defendant. 

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23 MEMORANDUM 

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Case 14-01076 Filed 09/30/15 Doc 81
1 Chapter 7 trustee Randell Parker ("Parker") seeks to tax costs 

2 of $1,632.49 to defendant Verlyn Gaines ("Gaines") after prevailing 

3 at trial. 

FACTS 

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Shaver Lakewoods Development, Inc., filed a chapter 7 

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bankruptcy. Parker was appointed the trustee. Parker brought an 

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adversary proceeding against Gaines to determine the nature, extent 

7 and validity of Gaines's lien, as well as the existence and amount of 

8 his claim. Parker prevailed at trial and was awarded costs under 

9 Federal Rule of Bankruptcy Procedure 7054 (b). 

10 Parker filed a Ex Parte Application to Tax Costs 1 in the amount 

11 of $1,632.49. Gaines opposes Parker's right to tax (1) transcript 

12 costs of $692.69 because they were not "necessarily obtained for use 

13 in the case," 28 U.S.C. § 1920(2); and (2) witness costs of $336.45 

14 for Robert Rodriguez and Angela Rodriguez, who were not called as 

15 witnesses, nor present, at trial, 28 U.S.C. § 1920 

JURISDICTION 

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This court has jurisdiction. See 28 U.S.C. §5 1334, 157(a); 11 

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U.S.C. § 523; General Order No. 182 of the U.S. District Court for 

18 the Eastern District of California. This a core proceeding. See 28 

19 U.S.C. § 157(b) (2) (B), (K) 

20 DISCUSSION 

21 IF! Legal Standards 

22 Costs may be taxed to the non-prevailing party in an adversary 

23 Iproceeding. 28 U.S.C. § 1920; Fed. R. Bankr. P. 7054(b); L.R. 292, 

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Requests to tax costs are not properly submitted by ex parte 

26 application, but rather by Bill of Costs with supporting 

documentation. See L.R. 292(b), incorporated by LBR 1001-1(c). 

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2 Gaines opposition does not comply with LBR 9014-1(c) (4) (Omission of 

28 the docket control number, i.e., KDG-1) 

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Case 14-01076 Filed 09/30/15 Doc 81
1 incorporated by Fed. R. Bankr. P. 1001(c). Unless authorized by 

2 other statute or by contract, 28 U.S.C. § 1920 defines and limits the 

3 types of costs that may be taxed. Crawford Fitting Co. v. J.T. 

4 Gibbons, Inc., 482 U.S. 437, 440-42 (1987). As applicable here, the 

5 prevailing party may recover costs for court reporter's fees, 28 

6 U.S.C. § 1920(2)), and for witness fees, 28 U.S.C. § 1821. L.R. 

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292 (f) 

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II. Costs Allowed and Disallowed 

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The prevailing party must itemize its costs with sufficient 

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detail to allow the court to independently conclude that each expense 

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is of the species taxable under § 1920. Plantronics, Inc. v. Aliph, 

13 Inc., 2012 WL 6761576 at * 3 (N.D. Cal. October 23, 2012). Once it 

14 does so, the costs are presumptively taxable. Id. And it is the 

15 responsibility of the party to be taxed to demonstrate that the costs 

16 are either not taxable or unreasonable in amount. Majeske v. City 

17 of Chicago, 218 F.3d 816, 824 (7th Cir. 2000) 

18 A. Transcripts 

19 Transcripts are taxable, provided they were "necessarily 

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obtained for use in the case." 28 U.S.C. § 1920(2); Manildra Milling 

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Corp. v. Ogilvie Mills, Inc., 76 F.3d 1178, 1184 (Fed. Cir. 1996); 

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Summit Technology, Inc.v. Nidek Co., Ltd., 435 F.3d 1371, 1380-81 

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(Fed. Cir. 2006) . Transcripts obtained for discovery or 

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investigative purposes are not recoverable. Coats v. Penrod Drilling 

26 Corp., 5 F.3d 877, 891 (5th Cir. 1993). The deposition of the 

27 adverse party, Gaines, is necessary to ascertain the nature and 

28 extent of his knowledge and to pin him down to a story. Costs of 

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Case 14-01076 Filed 09/30/15 Doc 81
1 $456.04 will be allowed. Transcripts of the meetings of creditors 

2 and of the courts findings after trial were convenient, not 

3 necessary. Costs of $236.65 are disallowed. 

4 B. Witnesses Neither Called, Nor Present 

5 Section 1821 conditions payment on physical appearance by the 

6 witness on the date and at the place of trial. 28 U.S.C. 

7 § 1821(a) (1) ("a witness in attendance"); Jones v. Unisys Corp., 54 

8 F.3d 624, 633 (10th Cir. 1995); Coats v. Penrod Drilling Corp., 5 

9 F.3d 877,, 891 (5th Cir. 1993). Neither Rodriguez was called to 

10 testify at trial, nor otherwise attended trial. As a result, $336.45 

11 is disallowed. 

CONCLUS ION 

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For each of these reasons, the motion will be granted in part 

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and denied in part. Costs of $1,059.39 will be taxed against Gaines. 

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The court will issue a separate order. 

15 Dated: September 30, 2015 

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17 Fredrick E. Clement 

18 United States Bankruptcy Judge 

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That amount is calculated by deducting $573.10 (costs disallowed) 

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Case 14-01076 Filed 09/30/15 Doc 81
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Instructions to Clerk of Court 

2 Service List 

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The Clerk of Court is instructed to send the Order/Judgment or other 

4 court generated document transmitted herewith to the parties below. 

The Clerk of Court will send the Order via the BNC or, if checked 

5 via the U.S. mail. 

6 Debtor(s), Attorney for the Debtor(s), Bankruptcy Trustee (if 

a in the case) , and ____X Other Persons Specified Below: 

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Lisa Holder, Esq. 

8 KLEIN, DENATALE, GOLDNER, 

COOPER, ROSENLIEB & KIMBALL, LLP 

9 4550 California Avenue, 2' Floor 

Bakersfield, CA 93309 

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Robert H. Brumfield, Esq. 

11 2031 F Street 

Bakersfield, CA 93301 

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Case 14-01076 Filed 09/30/15 Doc 81