Opinion ID: 435319
Heading Depth: 1
Heading Rank: 3

Heading: prevailing party's costs

Text: 16 In its judgment, the district court stated that each party shall bear its own costs. Bolger moved that costs be taxed against Gilchrist, but the court ruled that Gilchrist's notice of appeal deprived it of jurisdiction over the costs issue. Bolger contends that the trial court's unexplained decision in the judgment to deny his costs was an abuse of discretion. 17 Under Fed.R.Civ.P. 54(d), costs shall be allowed as of course to the prevailing party unless the court directs otherwise. While the rule does not prevent a trial court from requiring a prevailing party to bear its own costs, 'the language of the rule reasonably bears intendment that the prevailing party is prima facie entitled to costs and it is incumbent on the losing party to overcome that presumption.... [since] denial of costs ... is in the nature of a penalty for some defection on his part in the course of the litigation.'  Walters v. Roadway Express, Inc., 557 F.2d 521, 526 (5th Cir.1977) (quoting Popeil Brothers, Inc. v. Schick Electric, Inc., 516 F.2d 772, 775 (7th Cir.1975)). The rule in this circuit is that where the trial court denies the prevailing party its costs, the court must give a reason for its denial of costs so that the appellate court may have some basis upon which to determine if the trial court acted within its discretionary power. Id. at 526-27; see also Baez v. United States Dept. of Justice, 684 F.2d 999, 1004 (D.C.Cir.1982) (en banc) (Every circuit that has considered the question (ten out of twelve) has not only recognized the presumption [that prevailing parties will obtain costs], but has held that a court may neither deny nor reduce a prevailing party's request for costs without first articulating some good reason for doing so.). 18 We accordingly vacate that part of the judgment directing the parties to bear their own costs and remand the question of costs to the district court for it either to grant the defendant his costs or to deny costs with a reason given for the denial. In all other respects, the judgment of the district court is affirmed. 19 AFFIRMED in part; VACATED and REMANDED in part with instructions for retaxing costs.