Recoverability of e-Discovery Costs in Federal Court: An Update

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Last summer, we discussed the split of authority regarding the recoverability of e-discovery costs by a prevailing party in federal court under 28 U.S.C. § 1920. Generally, a court may award “[f]ees for exemplification and the costs of making copies of any materials where the copies are necessarily obtained for use in the case.” 28 U.S.C. § 1920(4).

We alerted our readers to a federal district court case — and growing trend toward — awarding a substantial amount as taxable costs for a broad array of e-discovery activities (See July 2011 Legal Alert here). Recently, the United States Court of Appeals for the Third Circuit ruled in the appeal of this same case, overturning most of the award and providing definitive guidance to district courts in that circuit on the narrow extent to which e-discovery costs are taxable under § 1920(4).

Please see full alert below for more information.

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Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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