This is Part 3 of a multipart blog series on cost recovery.
Probably the seminal cost recovery case is Race Tires America, Inc. v. Hoosier Racing Tire Corp., No. 2:07cv1294, 2011 WL 1748620 (W.D. Pa. May 6, 2011). The antitrust case resulted in summary judgment for the defense, who included almost $400,000 in discovery costs in their bill of costs. The plaintiff, Race Tires, objected on the grounds that eDiscovery is not listed in 28 U.S.C. § 1920 as a taxable cost, but the judge elected to follow persuasive decisions and held that eDiscovery costs could be recovered under the statute, largely based on the argument that eDiscovery was akin to “making copies.”
Race Tires appealed to the Third Circuit, which decided that only a few elements of eDiscovery – converting native files to TIFF and scanning paper documents to create electronic images – qualified as making copies and reduced the total cost award by more than 90 percent.
For a more complete discussion of Race Tires and its impact, click here to download the Modus/Reed Smith white paper Pursuing eDiscovery Cost Recovery.