Law360 has Lower Courts May Not Alter Appellate Cost Awards, Justices Say
Federal district courts lack the discretion to reduce or eliminate appellate costs awarded by appeals courts to a successful appellant, the U.S. Supreme Court said Thursday in affirming a Fifth Circuit ruling that forced the City of San Antonio and other municipalities to cover the $2 million cost of an appeal bond after Hotels.com prevailed in a tax case.
The justices unanimously ruled that Rule 39 of the Federal Rules of Appellate Procedure, which sets out the mechanism for assessing and taxing costs relating to appeals, does not permit a district court to alter an appellate court's allocation of costs.
Law.com's article is Supreme Court Closes Door on Move to Reduce $2.2M in Appeals Costs
"Most appellate costs are readily estimable, rarely disputed, and frankly not large enough to engender contentious litigation in the great majority of cases," Alito wrote. "We recognize that supersedeas bond premiums are a bit of an outlier in that they can grow quite large."
Also of SCOTUS interest: BHBA presents a free RBG program on June 4 (12:30 to 1:30): Off of the Pedestal and Out of the Cage: The Life and Legacy of Ruth Bader Ginsburg
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