Opinion ID: 790940
Heading Depth: 2
Heading Rank: 3

Heading: The Award of Costs to Union/USA

Text: 41 Finally, United Teacher claims that the district court abused its discretion when it awarded certain costs to Union/USA. A district court has broad discretion in awarding costs, and its decision to award costs will only be reversed upon a clear showing of an abuse of discretion. Migis v. Pearle Vision, Inc., 135 F.3d 1041, 1049 (5th Cir. 1998); Kinnear-Weed Corp. v. Humble Oil & Ref. Co., 441 F.2d 631 (5th Cir.1971). 42 First, United Teacher contends that Union/USA was not entitled to any fees or costs associated with William DeCinque's attendance at trial because he did not testify and was Union/USA's corporate representative. This argument fails because both parties had designated DeCinque as a witness, and he was not called to testify solely to save time at the end of the trial. Nissho-Iwai Co., Ltd. v. Occidental Crude Sales, Inc., 729 F.2d 1530, 1553 (5th Cir.1984); United States v. Lynd, 334 F.2d 13, 16 (5th Cir.1964) (per curiam). Second, United Teacher claims that travel expenses for DeCinque and James McDermott should not have been awarded because they did not use the most economical rates for travel and because Union/USA did not provide receipts for McDermott's expenses. United Teacher, however, has offered no evidence that DeCinque and McDermott did not use the most economical rate available other than noting that Jennifer Lazio, who flew from a different city than DeCinque and on different days from McDermott, obtained a cheaper fare. Additionally, the record indicates that McDermott did in fact submit an invoice for his costs that was attached to the Bill of Costs filed by Union/USA in the district court, and the district court accepted this as adequate documentation. Accordingly, the district court did not abuse its discretion in awarding travel expenses for these witnesses. See 28 U.S.C. § 1821(c)(1). Third, United Teacher contends that the district court improperly awarded costs for photocopies because Union/USA did not submit an itemized invoice and failed to prove that the copies were necessarily obtained for use in the litigation. However, the record indicates that Union/USA's counsel made the appropriate declaration under penalty of perjury that the costs were correct and necessarily incurred in this action, and the district court, in awarding costs, overruled United Teacher's objection on this point. The fact that Union/USA did not precisely itemize its photocopying costs does not undermine the district court's award. See Copeland v. Wasserstein, Perella & Co., Inc., 278 F.3d 472, 484 (5th Cir.2002). Thus, the district court did not abuse its discretion in awarding photocopying costs. 43 Finally, United Teacher claims that the district court abused its discretion when it awarded subsistence allowances for four of Union/USA's witnesses (Lake, McDermott, DeCinque, and Lazio) that were greater than the maximum per diem allowance set forth in 28 U.S.C. § 1821(d)(2). According to United Teacher, the maximum allowable per diem rate for Austin, Texas is $126 per day. It contends, therefore, that, at most, Union/USA was entitled to $2,268 in subsistence costs for the eighteen days that these four witnesses attended the trial, not the $4,165.63 that was awarded to it. 11 44 We find that the district court did abuse its discretion when it awarded subsistence costs to Union/USA in excess of the per diem amount authorized by statute. Section 1821(d)(2) of Title 29 of the United States Code states: 45 A subsistence allowance for a witness shall be paid in an amount not to exceed the maximum per diem allowance prescribed by the Administrator of General Services, pursuant to section 5702(a) of title 5, for official travel in the area of attendance by employees of the Federal Government. 46 29 U.S.C. § 1821(d)(2). The record reflects that the maximum per diem amount for Austin, Texas, the city where the bench trial in the present case was held, was $126 per day at the time of trial. Additionally, Union/USA admits, and the record reflects, that the district court awarded costs above this per diem rate. This court has held that an award of costs must be vacated when the costs awarded exceed the maximum per diem amount permitted by statute. See Holmes, 11 F.3d at 64 (vacating an award of costs because the district court awarded more than the $40 per day permitted under 28 U.S.C. § 1821(b)). Union/USA tries to get around this requirement by citing a district court case decided in 1968 in North Carolina, Morgan v. Kight, 294 F.Supp. 40, 42 (E.D.N.C.1968), which allegedly states that costs in excess of the per diem amount may be awarded in the discretion of the district court. This use of Morgan is misleading. While the court in Morgan stated that some courts have awarded costs above the per diem rate, it then stated that the better rule seems to require the court's approval before the expense is incurred[,] and it refused to award costs in excess of the per diem rate. Id. at 42, 294 F.Supp. 40 (citing Dep't of Highways v. McWilliams Dredging Co., 10 F.R.D. 107 (W.D.La.1950), aff'd 187 F.2d 61 (5th Cir.1951)). Accordingly, because the district court awarded subsistence fees in excess of the permissible amount, this award of fees, like the excessive award in Holmes, shall be vacated and remanded for the district court's recalculation in accordance with 28 U.S.C. § 1821(d)(2). 12 Holmes, 11 F.3d at 64.