Cases Under Review, Costs: SCOTUS Grants Certiorari On The Question Of Whether District Courts Have Discretion To Deny Or Reduce Appeal Costs

Particular Question Dealt With Substantial Supersedeas Bond Premiums and Interest.

            On January 8, 2021, the U.S. Supreme Court granted certiorari on an appellate costs issue, in City of San Antonio v. Hotels.com, No. 20-334 (U.S.), to wit:  “Whether, as the U.S. Court of Appeals for the 5th Circuit alone has held, district courts “lack[] discretion to deny or reduce” appellate costs deemed ‘taxable’ in district court under Federal Rule of Appellate Procedure 39(e).”

            In this particular case, Hotels.com eventually obtained reversal of a judgment and then sought to recoup $2,008,359 in supersedeas appellate bond premiums and interest as F.R.App.P. 39(e) appellate costs.  The Fifth Circuit found it had no discretion to reduce or deny the appellate costs request, a decision at odds with the views of the First, Second, Fourth, Sixth, Eighth, Ninth, Eleventh, and Federal Circuits.  The framing of the issue alone might suggest that this one may well get reversed—but we shall see!