Opinion ID: 440314
Heading Depth: 2
Heading Rank: 7

Heading: The District Court's Award of Costs Against the Freemans

Text: 83 On appeal the Freemans assert that the district court erred in awarding costs to the School pursuant to 28 U.S.C. Sec. 1332(b). 27 The district court taxed costs against the Freemans in the action they brought against the School because the judgment of $4,000 in favor of Dr. Freeman was less than the $10,000 jurisdictional amount necessary in an action based on diversity of citizenship. 84 The statute's language does not require the district court to determine whether the party brought its claim in good faith; however, the legislative history and case law interpreting this statute indicate that good faith is a factor that the district court should consider when deciding whether to impose costs. 28 See Bochenek v. Germann, 191 F.Supp. 104 (E.D.Mich.1960); Stachon v. Hoxie, 190 F.Supp. 185, 186 (W.D.Mich.1960). Our review of the record in this case convinces us that the Freemans, although not establishing the requisite elements of their various claims, did not assert those claims in bad faith. When the statute gives the district court judge the discretion to impose costs, the reasons supporting that determination should be stated. No reasons were stated in the present case, except for the fact that the Freemans did not establish the requisite jurisdictional amount. We do not feel that the facts of this case justify imposition of costs as punishment simply because the jurisdictional amount was not established.