FILED U.S. COURT OF AP P EALS E LEVEN T HC IRC U IT JUNE 7, 2005 THOMAS K. KAH

N CLERK [ DO NO T P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 04- 15664 N on -A rgum entC al endar

________________________ D . C . D ocketN o. 02 -004 97 -C V -J O F -1 T O M J A M E S C O M P A N Y , P l ai nt i ff -C ou nt er D ef endant -A pp el l ee C r o s s - A p p e lla n t, v ersu s W A L T E R L O U I E M O R G A N , J R ., I ndi vi dua l l y a nd d. b. a. B enchm ade C l othi ng of A tla n ta , as o le p r o p r ie to r s h ip , e t a l., D e f e n d a n t- A p p e lla n t C r o s s - A p p e lle e .

________________________ A pp ea l s f

rom the U ni t ed S t at es D i stri ctC ou rt f o rth e N o rth e rn D is tr ic t o f G e o r g ia

_________________________ ( J une 7, 2005) B efo re A N D E R S O N , B L A C K an d W IL S O N , C i rcu i tJu d g es. P E R C U R I A M:2

D ef endantW al t erL ou i e M organ, Jr . (“ M organ”) s ee ks re vi ew of the di stri ct c ourt ’ s J a nua ry14, 2004, or de rof c i vi l c ont e m pt , a nd i t s S e pt e m be r28, 2004, or de raw a r di ng a tt orne y ’ s f e e s a nd c os t s t o P l a i nt i f f T om J a m e s C o. ( “ T om Ja m es ”) . T om Ja m es al so appeal s the di stri ctcourt ’ s S ept em ber 28, 20 04 , order a w a r d in g a tto rn e y ’s f

e e s a n d c o s ts .

I . Ba c k g r o und M or ga n i s af

orm e rs a l e s e m pl oy e e of T om J a m e s C o. , am e n’ s bus i ne s s a nd bus i ne s s c a s ua l c l othi ng r e t a i l e r . M or ga n w orke d f orT om J a m e s f

or ap p ro x i m at el y fi ft een years b efo re h e l eftth e co m p an y t o st arth i s o w n b u si n ess, B enchm ade C l othi ng of A t l ant a. S i nce e nd i ng hi s e m pl oym entw i th T om Ja m es C o ., M o r g a n h a s c o n ta c te d a n d m a d e s a le s to c u s to m e r s w h o m h e p r e v io u s ly s e rvi c e d w hi l e e m pl oy e d by T om J a m e s . A s ar e s ul t , on F e brua ry 21, 2002, T om J a m e s s u e d M o r g a n f

o ra lle g e d v io la tio n s o f

c o v e n a n ts n o t to c o m p e te a n d n o t to di s c l os e c onf

i de nt i a l i nf

orm a t i on a nd tr a de s e c r e t s . I n D e c e m be rof 2002, T om J a m e s a nd M or ga n a m i c abl y r e s ol ve d the s ui tby e nt e r i ng i nt o aS e tt l e m e nt A gree m entand R el ea se . A dd i t i on al l y, M organ agreed and con se nt ed t o an i nj unc t i on tha tw a s pr e pa r e d a nd s ubm i tt e d t o the c ourtby T om J a m e s . T he d i s tr i c tc o u rte n t e r e d th e i n j u n c t i o n o n D e c e mb e r2 0 , 2 0 0 2 . Pu r s u a n tt o th e t e rms o f th e in ju n c tio n , M o r g a n w a s “e n jo in e d , u n til D e c e m b e r1 2 , 2 0 0 4 , f r o m d ir e c tly3

or i nd i re ct l y s ol i ci t i ng , for the sa l e of c l othi ng and w ar drob e a cc es sori es of the sort h e s o ld f o r[ T o m J a m e s ], th o s e c u s to m e r s o f [ T o m J a m e s ] a s to w h o m h e w a s p a id as a l e s c om m i s s i on w hi l e e m pl oy e d by [ T om J a m e s ] , . . . [ a nd i s f ur the re nj oi ne d] f r om di r e c t l y ori ndi r e c t l y s e l l i ng s uc h c l othi ng a nd w a r dr obe a c c e s s or i e s t o a ny such cust om er s e ven i n the abse nce of any s ol i ci t at i on . ” I n S e pt e m be r2003, T om J a m e s , a l l e gi ng tha tM or ga n ha d vi ol a t e d the in ju n c tio n , f

ile d am o tio n f

o rc r im in a l a n d c iv il c o n te m p t. O v e rs e v e r a l d a y s in N ove m be ra nd D e c e m be rof 2003, the di s tr i c tc ourthe l d a n e vi de nt i a ry he a r i ng on the m ot i on. D ur i ng the l e ngthy e vi de nt i a ry he a r i ng, the di s tr i c tc ourt , c i t i ng Y oung v . U . S. ex r e l V ui t ton e t Fi l s , SA , 48 1 U . S . 78 7 (19 87 ), suspended the cr i m i nal c o n te m p t p r o c e e d in g s , a n d p r o c e e d e d o n ly w ith th e c iv il c o n te m p t p r o c e e d in g s . A s e vi de nc e tha tM or ga n vi ol a t e d the i nj unc t i on, T om J a m e s of f e r e d the t e s t i m ony of f i ve m e n w ho or i gi na l l y w e r e c us t om e r s of M or ga n w he n he w a s e m pl oy e d by T o m J a m e s a n d h a d c o n tin u e d to b e c u s to m e r s o f M o r g a n a f

te rh e te rm in a te d h is e m p lo y m e n t w ith T o m J a m e s . I n i t s J a nua ry 14, 2004, or de r( “ c ont e m ptor de r ” ) , the di s tr i c tc ourtf ound M or ga n i n c i vi l c ont e m pt , or de r e d M or ga n t o pa y nom i na l da m a ge s of $500. 00 ( $100. 00 pe re a c h of

the f i ve c us t om e rw i tne s s e s ) pl us a tt orne y ’ s f e e s , a nd decl i ned t o aw ar d com pensat ory dam ages or equi t abl e r el i ef t o T om Ja m es . In4

ac cordance w i th the t erm s of the cont em ptorder, T om Ja m es subm i tt ed a f ee p e titio n in w h ic h it r e q u e s te d $ 1 1 5 ,3 7 5 .2 0 in a tto rn e y ’s f e e s a n d $ 2 6 ,9 1 7 .8 6 in cost s. A ft erre vi ew i ng the att orney’ s f ee s and cost s i ncurred, the di stri ctcourt a w a r d e d T o m J a m e s $ 7 6 ,9 1 7 .0 0 in a tto rn e y ’s f e e s a n d $ 5 ,3 2 4 .0 8 in c o s ts . I I . D i s c u s s i on M organ ass ert s thatthe di stri ctcourt ’ s f i nd i ng of ci vi l cont em ptconst i tut es r e ve r s i bl e e rr or . A l t e rna t i ve l y , M or ga n c l a i m s tha tthe di s tr i c tc ourta w a r de d T om J a m e s a n e xc e s s i ve a m ountof a tt orne y ’ s f

e e s a nd c os t s . T om J a m e s , on the c ontr a ry , a r gue s tha tthe a m ountof a tt orne y ’ s f

e e s a nd c os t s a w a r de d w a s not s u f f ic ie n t. A . C i vi l C ont e m pt

“ A f i ndi ng of c i vi l c ont e m ptm us tbe ba s e d on c l e a ra nd c onvi nc i ng evi dence thata c ou rtorder w as vi ol at ed. ” J ov e E ng’ g v . I . R . S. , 92 F . 3d 1539, 1545 (11th C i r. 19 96 ) ( ci t at i on and i nt ernal qu ot at i on om i tt ed). T hi s s t andard i s m ore exac t i ng than the prepon dera nce of the evi dence s t andard, bu tdo es no tre qu i re p r o o f b e y o n d ar e a s o n ab le d o u b t. Se e id. W e r e vi e w the di s tr i c tc ourt ’ s de t e rm i na t i on of c i vi l c ont e m ptf

orabus e of d is c r e tio n . H

o w a rd J o h n s o n C o ., I

n c . v . Kh im a n i, 8 9 2 F .2 d 1 5 1 2 , 1 5 1 6 ( 1 1 th C i r . 1990) ( c i t i ng A

f r o-A m e r i c an P atr olm e n' s L e ague v . C i t

y of A t lanta, 817 F . 2d5

7 1 9 , 7 2 3 ( 1 1 th C ir .1 9 8 7 ) ) . “A d is tr ic t c o u rt ab u s e s its d is c r e tio n w h e n it m i s c ons true s i t s pr ope rr ol e , i gnor e s orm i s unde r s t a nds the r e l e va nte vi de nc e , a nd base s i t s dec i si on up on consi dera t i on s havi ng l i tt l e f ac tual supp ort . ” A r look v . S. L ic h te n b e r

g& C o ., I

n c ., 95 2 F . 2d 36 7, 37 4 (11 th C i r. 19 92 ). M organ argues n u m e r o u s g r o u n d s o n w h ic h w e s h o u ld f in d th a t th e d is tr ic t c o u rt ab u s e d its d is c r e tio n in f

in d in g h im in c iv il c o n te m p t. 1. T he I nj unc t i on M o r g a n f

ir s t a r g u e s th a t th e D e c e m b e r2 0 , 2 0 0 2 , in ju n c tio n is u n e n f

o r c e ab le be c aus e i ti s va gue , a m bi guous , a nd ove r l y br oa d. R ul e 65 of the F e de r a l R ul e s of C iv il P r o c e d u r e r e q u ir e s th a t a n in ju n c tio n b e “s p e c if

ic in te rm s ” a n d d e s c r ib e “in re as on abl e det ai l the ac t s s ou gh tt o b e r es tra i ned. ” N everthel es s, w e “ do no tse t a s i de i nj unc t i ons unde rR ul e 65( d) unl e s s the y a r e s o va gue tha tthe y ha ve no re as on abl y s peci fi c m eani ng . ” P lan etary M ot i on , Inc. v. T

ec hspl osi on , Inc. , 261 F . 3 d 1 1 8 8 , 1 2 0 3 (1 1 th C i r. 2 0 0 1 ) (i n t ern al q u o t at i o n s o m i tt ed ). In o th er w o rd s,

“ the i nq ui ryshou l d b e w hether the part i es subj ec tt o the i nj un ct i ve order un ders t oo d thei r obl i gat i on s und erthe order. ” W i l l i am s v . C i t

y of D othan, A la. , 81 8 F . 2d 75 5, 76 1 (11 th C i r. 19 87 ). M organ ass ert s thatthe i nj un ct i on di d n otexpl ai n w i th speci fi ci ty w hat a c tio n s w e r e e n

jo in e d , a n d is b r o a d e rin s c o p e th a n th e r e lie f T o m J a m e s o r ig in a lly6

r e q u e s te d in th e c o m p la in t. W e n o te , h o w e v e r , th a t M o r g a n v o lu n ta r ily a g r e e d to be bound by the t e rm s of the i nj unc t i on a s pa rtof the s e tt l e m e nta gr e e m e nt ne got i a t e d t o a m i c abl y r e s ol ve the s ui tT om J a m e s f i l e d a ga i ns tM or ga n. I n r e turn, T om Ja m es agre ed t o d i sm i ss w i th p re j ud i ce i t s c l ai m s a gai nstM organ. M oreover, M or ga n w a s r e pr e s e nt e d by c ouns e l i n thi s bar ga i ne d f ore xc ha nge . A tno poi nt pr i ort o the c ont e m ptpr oc e e di ng di d M or ga n c om pl a i n t o the c ourtaboutthe ad eq u acy o f th e t erm s o f th e i n j u n ct i o n o r seek t o h av e i tm o d i fi ed . A cco rd i n g l y, atthi s poi nt , any obj ec t i on t o the spec i fi c t erm s of the i nj un ct i on i s dee m ed w a iv e d . See C om bs v. R yan’s C ol e C o. , Inc. , 7 8 5 F .2 d9 7 0 , 9 7 9 ( 1 1 th C ir . 1 9 8 6 ) . N e ve rthe l e s s , e ve n i f

M or ga n ha d notw a i ve d hi s obj e c t i ons t o the in ju n c tio n , th e in

ju n c tio n is n o t v a g u e , a m b ig u o u s , o ro v e r ly b r o a d . P u r s u a n t to th e te rm s o f

th e in ju n c tio n , M o r g a n w a s p r o h ib ite d f o rap e r io d o f

ap p r o x im a te ly tw o y e a r s f

r om s e l l i ng “ c l othi ng a nd w a r dr obe a c c e s s or i e s of the s or the s ol d” w hi l e e m pl oyed by T om Ja m es t o the cust om er s t o w ho m he sol d w hi l e e m pl oyed by T om Ja m es . M organ w orked atT om Ja m es for over fourt ee n years and w as f a m ilia rw ith th e c lo th in g s o ld b y th a t c o m p a n y s u c h th a t h e s h o u ld u n d e r s ta n d h is obl i ga t i ons unde rthe i nj unc t i on. F urthe r , the r e l i e f r e s ul t i ng f

r om the i nj unc t i on d o es n o tex ceed th e sco p e o f th e rel i ef req u est ed i n th e co m p l ai n t . N o n eth el ess, e v e n if it d id , th e v o lu n ta ry in

ju n c tio n is e n f

o r c e ab le . See L ocalN

o. 93 , Int ’l

A ss ’n7

of Fi r e f i ghte rs v . C i t

y of C le v e land , 478 U . S . 501, 525- 26 ( 1986) ( c ourtm a y i s s ue a n a g r e e d u p o n in

ju n c tio n p r o v id in g f

o rb r o a d e rr e lie f

th a n a v a ilab le p u r s u a n t to the t e rm s of

the c om pl a i nts o l ong a s the a gr e e m e nti s “ w i thi n the ge ne r a l s c ope of the c a s e m a de by the pl e a di ngs ” a nd doe s not“ c onf l i c t [ ] w i th orvi ol a t e [ ] the st atut e upo n w hi ch the com pl ai ntw as base d”). S i nce the i nj un ct i on w as no tvagu e, a m b ig u o u s , o ro v e r ly b r o a d , w e w ill n o t r e v e r s e th e d is tr ic t c o u rt’s o r d e ro f c iv il co n t em p to n th ese g ro u n d s.

2. E xcl usi on of E vi dence M o r g a n ap p e a ls th e d is tr ic t c o u rt’s e x c lu s io n o f th e te s tim o n y o f

tw o o f h is e x p e rts a n d e v id e n c e r e g a r d in g th e d if f e r e n c e s b e tw e e n th e c lo th in g th a t h e s o ld w h ile a t T o m J a m e s a n d a f te rle a v in g T o m J a m e s . R a th e rth a n p e rm it th e e x p e rts to te s tif y , th e d is tr ic t c o u rt p e rm itte d M o r g a n to s u b m it aw r itte n p r o f f e ro f th e ir te s tim o n y . F o rth e s e e v id e n tia ry ru lin g s to b e r e v e r s ib le , M o r g a n m u s t n o t o n ly s how tha tthe e rr orw a s a n abus e of the di s tr i c tc ourt ’ s di s c r e t i on, buta l s o tha the w a s p r e ju d ic e d b y th e o m is s io n . See B rochu v. C i t y of R i vi era B each , 304 F . 3d 1144, 1155 ( 11th C i r . 2002) . M or ga n ha s s how n ne i the r . T hus , w e w i l l not rev erse th e d i stri ctco u rto n th ese ev i d en t i ary ru l i n g s.

3. S uffi ci encyof the E vi dence M or ga n a s s e rt s tha tT om J a m e s f a i l e d t o pr ove w i th c l e a ra nd c onvi nc i ng8

e vi de nc e tha tthe c l othi ng M or ga n s ol d a f t e rD e c e m be r20, 2002, vi ol a t e d the t e rm s of the i nj unc t i on. S pe c i f

i c a l l y , M or ga n a l l e ge s tha tT om J a m e s s houl d ha ve a d m itte d s a m p le s o f

th e c lo th in g a t is s u e in to e v id e n c e d u r in g its c a s e in c h ie f . N ot abl y, any a l l eged fai l ure on the partof T om Ja m es w as cure d w hen M organ hi m s e l f e nt e r e d s a m pl e s of

the c l othi ng s ol d by hi m a s w e l l a s c l othi ng s ol d by T om J a m e s i nt o e vi de nc e dur i ng hi s de f e ns e . M or e ove r , the di s tr i c tc ourtha d the b e n e f it o f v o lu m in o u s te s tim o n y , in c lu d in g th a t o f T o m J a m e s ’s f

o rm e rc u s to m e r s . B a s e d o n th is te s tim o n y a n d o th e re v id e n c e , th e d is tr ic t c o u rt d id n o t ab u s e its d is c r e tio n in f

in d in g th a t T o m J a m e s h a d p r o v e n av io la tio n o f th e in ju n c tio n w ith c le a ra n d c o n v in c in g e v id e n c e . B . D am ages A w ar d U l t i m a t e l y , the di s tr i c tc ourta w a r de d T om J a m e s nom i na l da m a ge s i n the a m ountof

$500. 00, a tt orne y ’ s f

e e s i n the a m ountof

$76, 917. 00, a nd c os t s i n the a m ountof

$5, 324. 08. B oth M or ga n a nd T om J a m e s di s put e thi s da m a ge s a w a r d.

“ [S ] an ct i o n s i n ci v i l co n t em p tp ro ceed i n g s m ay be e m pl oy e d f ore i the ror b o th o f tw o p u rp o se s: to co er ce th e d ef en d an t i n to co m p li an ce w ith th e c o u rt’s order, and t o com pensat e the com pl ai nantfor l osse s s ust ai ned. ” L ocal28 , Sh ee t MetalW orke rs ’ I nt ’l A ss ’n v . EE OC , 478 U . S . 421, 443, 106 S . C t . 3019, 3033 (198 6) (i nt ernal qu ot at i on s om i tt ed) ( em ph as i s a dd ed). W e gi ve the di stri ctcourt9

b r o a d d is c r e tio n in f

a s h io n in g s a n c tio n s f

o rc iv il c o n te m p t. Se e Khi m ani , 892 F . 2d a t 1 5 1 9 . M o r g a n a r g u e s th a t th e d is tr ic t c o u rt’s a w a r d o f a tto rn e y ’s f

e e s a n d c o s ts sh o u l d b e rev ersed b ecau se T o m Jam es’ fee req u esti s u n reaso n ab l e. S p eci fi cal l y, M organ al l eges thatT om Jam es exer ci se d p oo r bi l l i ng j ud gm entand m ai nt ai ned i m pr ope ra nd i na c c ur a t e bi l l i ng r e c or ds . W e not e tha tthe di s tr i c tc ourtha s “ w i de d is c r e tio n ” in a w ar d in g f e e s a n d c o s ts . A C

L U v. B arnes , 1 6 8 F .3 d 4 2 3 , 4 2 7 ( 1 1 th C i r. 19 99 ). W hi l e w e a gree thatT om Ja m es ’ s bi l l i ng re cords a re no ta goo d m od el for f i l i ng a s ucce ss ful fe e pet i t i on , w e do n otfi nd thatthe am ou ntof att orney’ s f ee s a nd c os t s , w i th the e xc e pt i on of i nve s t i ga t i ve c os t s di s c us s e d i n f ra , r i s e s t o the l evel of re vers i bl e e rr or. In it s c ro ss ap p ea l, T o m Ja m es re q u es ts th at w e r ev er se th e d istrict co u rt’s aw ar d o f a tt orney’ s f

ee s and re m and so thatthe di stri ctcourtcan aw ar d add i t i on al d am ag es. F i rst , T o m Jam es assert s th atth e d i stri ctco u rterred i n h o l d i n g th atl o st r e ve nue s a nd di s gor ge m e ntof pr of i t s a r e notr e c ove r abl e i n c i vi l c ont e m pt pr oc e e di ng. A f

t e rr e vi e w i ng the di s tr i c tc ourt ’ s or de r s a nd the r e l e va ntport i ons of the evi dent i ary heari ng transcr i pt , w e di sa gree w i th T om Ja m es ’ s a ss es sm entthat the di s tr i c tc ourtm i s c ons true d i t s pow e rt o a w a r d da m a ge s . A tno poi ntdi d the di s tr i c tc ourts t a t e tha tl os tr e ve nue a nd di s gor ge m e ntof pr of i t s w e r e not10

r e c ove r abl e a s c i vi l c ont e m pts a nc t i ons . O n the c ontr a ry , thr oughoutthe he a r i ng, the di stri ctcourtexhi bi t ed thati tw as ful l y aw ar e of i t s di sc re t i on t o aw ar d such c om pe ns a t ory da m a ge s a nd e qui t abl e r e l i e f , butul t i m a t e l y de t e rm i ne d tha tT om J a m e s ha d notpr e s e nt e d s uf f i c i e nte vi de nc e t o m e r i tda m a ge s f orl os tr e ve nue s a nd d isg o rg em en t o f M o rg an ’s p ro fits. T h is d ec isio n is w ell w ith in th e d istrict co u rt’s w i de di sc re t i on and d oes notconst i tut e r ever si bl e e rr or. S e c ond, T om J a m e s a r gue s tha ti tpr e s e nt e d s uf f i c i e nte vi de nc e tha tthe di s tr i c tc ourts houl d ha ve a w a r de d l os tpr of i t s due t o M or ga n’ s vi ol a t i ons of the i nj unc t i on. A ga i n, s uc h ade t e rm i na t i on of c om pe ns a t ory da m a ge s i s w i thi n the di s tr i c tc ourt ’ s w i de di s c r e t i on. H a vi ng r e vi e w e d the e vi de nc e pr of f e r e d by T om Jam es, w e w i l l n o td i stu rb th e d i stri ctco u rt ’ s d en i al o f reco v ery fo r al l eg ed l o st p r o f its . T hi r d, T om J a m e s c l a i m s tha tthe di s tr i c tc ourte rr e d i n di s a l l ow i ng re i m bu rs em entfor $16 , 96 6. 50 i n i nv es t i gat i ve expenses. S peci fi ca l l y, T om Ja m es a s s e rts th a t th e d is tr ic t c o u rt e rr e d in its b e lie f th a t R u le 5 4 ( d ) a n d 2 8 U .S .C . § 1920 r e s tr i c t e d i t s i nhe r e ntauthor i ty t o a w a r d e xpe ns e s a s as a nc t i on f orc ont e m pt s u c h th a ti n v e s t i g a t i v e f e e s we r e u n r e c o v e r ab l e a s am a tt e ro f l a w. We r e v i e w de no vo adi s tr i c tc ourt ’ s de c i s i on tha ti tdoe s notha ve the l e ga l author i ty t o a w a r d a p a rtic u la rtyp e o f

c o n te m p t s a n c tio n . See E E O Cv. G ua rdi an P oo l

s, Inc. , 828 F . 2dIn Bo nn er v. Pricha rd, 661 F.2d 1206, 1209 ( 11th Cir. 1981) (en ba nc), w e adopte d as 1 binding prece dent all dec isions of the former Fifth Circuit hande d down prior to Oc tober 1, 1981. 11 1 5 0 7 , 1 5 1 5 ( 1 1 th C ir . 1 9 8 7 ) . I n a w a r di ng c os t s a s as a nc t i on f orc ont e m pt , the di s tr i c tc ourti s notbound b y § 1 9 2 0 's lis t o f

c o s ts th a t m a y b e ta x e d p u r s u a n t to af in a l ju d g m e n t. See She i la’s Shi ne P r oduc t

s , I nc . v . She i la Shi ne , I

nc , 48 6 F . 2d 11 4, 13 0-31 (5th C i r. 1 9 7 3 ) . I n s te a d , th e d is tr ic t c o u rt, in its d is c r e tio n , m a y e x e r c is e its “w id e p o w e r. .

1

. t o i m po se fi nes f

or di sobedi ence t o i t s order s. ” I d. In thi s c as e, the di stri ctcourt c o n c lu d e d th a t T o m J a m e s c o u ld n o t r e c o v e rits in v e s tig a tiv e c o s ts p u r s u a n t to R ul e 54( d) a nd § 1920. T hi s na rr ow i nt e rpr e t a t i on of i t s i nhe r e ntpow e rt o s a nc t i on w as an error. O f c ou rs e, i m pl i ci ti n the di stri ctcourt ’ s i nh er entpo w ert o aw ar d cont em ptsanct i on s i s a l so the di stri ctcourt ’ s i nh er entpo w ert o d ec l i ne t o aw ar d r e im b u r s e m e n t f

o rth e s e in v e s tig a tiv e e x p e n s e s to T o m J a m e s . T h u s , w e v a c a te the deni al of i nv es t i gat i ve expenses and rem and t o the di stri ctcourtso thati tm ay e xe r c i s e i t s i nhe r e ntpow e ra nd br oa d di s c r e t i on w i th a n unde r s t a ndi ng tha ti ti s not r e s tr i c t e d by R ul e 54( d) a nd § 1920. I I I . C on c l u s i on W e ha ve c a r e f

ul l y a nd thor oughl y r e vi e w e d the r e c or d, the he a r i ng tr a n s c r ip ts , th e b r ie f

s o f th e p a rtie s , a n d th e tw o r e le v a n t o r d e r s o f th e d is tr ic t c o u rt.12

W i th the e xc e pt i on of

the de ni a l ba s e d on R ul e 54( d) a nd § 1920 of r e c ove ry f

or i nve s t i ga t i ve e xpe ns e s , w e f i nd no r e ve r s i bl e e rr or , a nd a f f i rm the or de r s of

the di s tr i c tc ourt . A s t o the de ni a l of i nve s t i ga t i ve e xpe ns e s , w e va c a t e tha tport i on of the di s tr i c tc ourt ’ s S e pt e m be r28, 2004, or de ra nd r e m a nd t o the di s tr i c tc ourtf or th e lim ite d p u rp o s e o f

c o n s id e r in g th e p r o p r ie ty o f a w a r d in g th e s e e x p e n s e s to T o m J a m e s . A F F I R M E D I N P A R T ; V A C A T E D A N D R E M A N D E D I N P A R T .