USA Law and Practice Contributed by: Courtney Scobie, Jack Edwards and Andrea Whitley, Ajamie LLP
by the prevailing party are recoverable under applicable rules. 11.2 Factors Considered When Awarding Costs The court considers the following factors when awarding costs. • Statutory provisions – the court examines relevant federal statutes that may authorise the award of costs in specific types of cases, such as civil rights cases, antitrust cases, or certain consumer protection cases. • FRCP 54(d) – FRCP 54(d) provides a gen- eral framework for awarding costs to the prevailing party. It states that costs should be allowed to the prevailing party unless a federal statute, rule, or court order provides otherwise. The court will consider FRCP 54(d) as the default rule for awarding costs. • Reasonableness – the court assesses the reasonableness of the costs sought by the prevailing party. This includes determining whether the costs are necessary for the litiga- tion and whether the amounts are reasonable in light of prevailing market rates. • Non-taxable costs – some costs may be non-taxable, meaning they are not recover- able under FRCP 54(d). By way of example, the costs of experts, certain transcripts, and deposition transcripts may not be recoverable as a matter of right and may require a specific showing of necessity. • Objections – the court considers any objec- tions raised by the opposing party to the award of costs. The opposing party may chal- lenge the necessity or reasonableness of the costs claimed. • Equity and discretion – courts have some discretion in awarding costs and may con- sider the equities of the case. This can involve weighing the relative success of the parties,
the complexity of the case, and the overall fairness of awarding costs. • Settlement agreements – if the parties reach a settlement agreement that includes provisions for cost allocation, the court will consider the terms of the settlement agreement when determining costs and likely give any settle- ment agreement between parties substantial deference. 11.3 Interest Awarded on Costs In federal courts in the USA, interest is gener- ally not awarded on costs. Costs are typically considered as fixed amounts associated with litigation expenses and they do not accrue interest. Instead, interest is primarily awarded on judgments, which represent the final amount of money a party is required to pay as a result of the court’s decision. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country Alternative dispute resolution is viewed favour- ably in the federal legal system of the USA as a means of resolving disputes efficiently, cost- effectively, and with more flexibility than tradi- tional litigation. ADR methods are encouraged and often required by federal courts as a way to reduce the caseload and promote the early and amicable resolution of disputes. Some of the most popular ADR methods in the federal legal system include mediation, arbitration, and settlement conferences. • Mediation – mediation is widely used in the federal legal system and is highly regarded. It is a voluntary process in which a neutral third party, the mediator, assists the parties in reaching a mutually agreeable resolution. It is
1458 CHAMBERS.COM
Powered by FlippingBook