Opinion ID: 901137
Heading Depth: 1
Heading Rank: 8

Heading: Abstract Fees and Audit Fees

Text: [¶ 27.] The abstract fees and audit fees awarded by the trial court were not consistent with this Court's strict construction of SDCL 15-17-37. This Court has consistently limited taxation of costs to those disbursements specifically authorized by statute. [8] Furthermore, this Court has been extremely hesitant to allow disbursements for other similar expenses and charges as mentioned in SDCL 15-17-37. See Nelson v. Nelson Cattle Co., 513 N.W.2d 900 (S.D.1994); Atkins v. Stratmeyer, 1999 SD 131, 600 N.W.2d 891; Zahn v. Musick, 2000 SD 26, 605 N.W.2d 823. [¶ 28.] This Court explained the philosophy behind its strict construction of cost or disbursement statutes in State Highway Commission v. Hayes Estate, 82 S.D. 27, 44-45, 140 N.W.2d 680, 690 (1966), stating: Under our statute fees paid photographers are not specifically mentioned, so if allowable, they must come within the term of procuring necessary evidence. We believe the statute should be construed not to cover photographer fees and expenses. The language used is broad and comprehensive and we do not say such evidence was not necessary to a proper trial of the action. However, the same is true of much that is done in procuring necessary evidence for use at the trial. For example, most discovery proceedings are designed and initiated to procure necessary evidence. The same purpose is intended when written statements are taken from witnesses or prospective witnesses or when experts are retained and consulted. The time and money expended and the techniques employed in many instances are limited only by the ingenuity of the person using them. Much of what is done procures evidence which is necessary for the trial. Yet quite generally amounts expended and disbursements made in preparing for trial are not considered as necessary in an allowance of costs. See Annotation 97 ALR2d § 15. We can visualize where to allow the expense of obtaining photographs to be taxed against an unsuccessful litigant might open the door to a Pandora's Box with wide variation between circuits and judges within the same circuit as to what is allowable and in what amount. Questions immediately arise as to how many photographs are considered necessary and of what type and size. What about money paid for moving pictures which more frequently are being used in personal injury cases? Can the expense be taxed only if paid to a professional photographer and should it include travel charges? If the photographs are taken by an attorney in the case, or an investigator, are such expenses chargeable? Myriad situations fraught with difficulty in application present themselves. [9] (footnote added). [¶ 29.] This leaves the Court with the perplexing question of where to draw the line. Such duty is practically impossible; therefore, this court upholds its policy of strict construction of SDCL 15-17-37 pursuant to Atkins and Nelson. As a result, neither abstract nor audit fees shall be included as taxable disbursements under SDCL 15-17-37. [¶ 30.] That part of the judgment awarding gross profits is affirmed; that part of the judgment denying attorney fees is affirmed; that part of the judgment denying pre- and post-judgment interest is reversed; that part of the judgment awarding abstract fees and audit fees is reversed; and, we find that the set-off should be deducted from the award of gross-profits before pre- and post-judgment interest is calculated. [¶ 31.] KONENKAMP and ZINTER, Justices, and AMUNDSON, Retired Justice, and TRANDAHL, Circuit Judge, concur. [¶ 32.] ENG, Circuit Judge, for GILBERTSON, Chief Justice, disqualified. [¶ 33.] TRANDAHL, Circuit Judge, for SABERS, Justice, disqualified. [¶ 34.] MEIERHENRY, Justice, not having been a member of the Court at the time this action was submitted to the Court did not participate.