Costs: SCOTUS Determines That Circuit Courts, Not District Judges Absent A Reference, Determine Whether To Deny Or Reduce Taxation Of Appellate Costs

Brightline Rule Adopted By SCOTUS On This Issue.

            In City of San Antonio v. Hotels.com, L.P., 593 U.S. __, Case No. 20-334 (U.S. May 27, 2021), the U.S. Supreme Court interpreted Federal Rule of Appellate Procedure 39 to vest in the circuit courts whether certain appellate costs would be denied or reduced.  San Antonio argued that the district court had discretion to do that, but SCOTUS rejected this approach by adopting a “bright-line” approach that the appellate court determines what is to be awarded, unless it refers it to the district judge for determination.  The case involved a supersedeas bond determination of $2.2 million, with the appellate court’s determination being dispositive and with the district court not being able to alter that determination.