Watkins v. The City Of New York

Background

Shauntay Watkins sued her former employer, the New York City Transit Authority, alleging race-based workplace discrimination under 42 U.S.C. § 1981 and the New York City Human Rights Law. After some claims were dismissed, the case went to a four-day jury trial on whether the Transit Authority had allowed a hostile work environment during Watkins’s training. The jury found for the Transit Authority, and the court entered judgment on January 30, 2019. The Court of Appeals for the Second Circuit later affirmed the order denying Watkins’s request for a new trial.

The Clerk of Court then assessed $4,268.87 in costs against Watkins: $794.85 for serving summonses and subpoenas, $3,323.16 for daily trial transcripts, and $150.86 in witness fees. Watkins appealed that assessment to the district court.

Legal standard

Federal Rule of Civil Procedure 54 generally permits costs to be awarded to the party that prevailed. Under 28 U.S.C. § 1920 and the court’s local rules, allowable costs can include necessary trial transcripts, witness expenses, and certain subpoena-service fees. The losing party bears the burden of showing why the court should set aside or reduce the Clerk’s assessment. The court reviews the cost issue independently and may consider equitable factors, including the losing party’s financial resources.

Daily trial transcripts

The court held that the Transit Authority had not shown that daily transcripts were necessary. The trial lasted four days, involved eleven witnesses, and was not shown to be particularly complex. Although the Transit Authority said its lawyers used the transcripts to prepare for cross-examination and closing arguments, convenience to counsel was not enough to make the expedited transcripts taxable as costs.

The court therefore granted Watkins’s appeal as to the daily-transcript charges. Because Watkins agreed that transcripts at the regular rate were appropriate, the transcript costs were reduced from $3,323.16 to $1,781.04.

Witness and subpoena fees

The court granted Watkins’s appeal of the $225 subpoena-service fee for her former therapist David. Watkins had authorized the release of her medical records, and the Transit Authority did not show that David would have refused to provide them without a subpoena. The records also were not introduced as trial exhibits, although some were used to refresh Watkins’s recollection.

The court denied Watkins’s appeal as to the $309.95 subpoena-service fee for her former therapist James Wadley. It found that the Transit Authority had not shown the subpoena was necessary to make Wadley attend and testify, but the record supported the subpoena’s use to obtain documents. The court therefore allowed the subpoena-service fee but rejected the $72.86 witness fee because the Transit Authority had not shown that a subpoena was necessary for Wadley’s appearance.

Disposition

Judge Ramos granted in part and denied in part Watkins’s appeal of the Clerk’s taxation of costs. The Clerk was directed to reduce the summons-and-subpoena costs from $794.85 to $569.85, transcript costs from $3,323.16 to $1,781.04, and witness fees from $150.86 to $78.00, for a total of $2,428.89. The court also directed the Clerk to terminate Watkins’s motion.