Judge: Daniel S. Murphy, Case: BC661332, Date: 2023-05-01 Tentative Ruling

Case Number: BC661332    Hearing Date: May 1, 2023    Dept: 32

BACKGROUND

            On May 15, 2017, Plaintiffs EFD USA Inc. (EFD) and Georgina Teran (Teran) filed this action against Band Pro Film and Digital, Inc. (Band Pro), Direct Video Warehouse, Inc. (DVWI), Maxpro Leasing, LLC (Maxpro), AKT Enterprises, LLC (AKT), Technijan, Inc. (Technijan), Brandon Brooks (Brooks), Greg Bisel (Bisel), and Amnon Band. EFD is a supplier of motion picture equipment and services to film and television productions. Teran is the founder of EFD. This dispute stems from EFD’s allegations about fraudulent and other improper charges by its major supplier and others regarding equipment financing transactions. The operative First Amended Complaint (FAC) was filed November 21, 2017.

            Plaintiffs settled the matter with Bisel and his related entities Maxpro, AKT, and Technijan (collectively, Bisel Defendants). The settlement addressed: EFD’s claims; AKT’s cross-claim for breach of contract; and a separate lawsuit filed by Bisel regarding an illegally recorded phone call. The matter went to trial before a jury on three claims asserted by EFD against Band Pro, Amnon Band, and Brandon Brooks: (1) fraud; (2) aiding and abetting fraud; and (3) money had and received. According to the verdict rendered on October 19, 2022, the jury found Band Pro and Brooks liable on all three claims, and Amnon Band liable for aiding and abetting fraud. As for damages, the jury attributed $49,481 to Band Pro, $49,481 to Brooks, and $10,995 to Amnon Band, for a total of $109,958. EFD also asserted UCL claims against Band Pro, Amnon Band, Brooks, and DVWI, which were heard as a bench trial.

            On January 30, 2023, the Court issued a statement of decision finding, among other things, that the Bisel settlement completely offset Plaintiff’s trial damages and UCL restitution. Judgment was entered on February 22, 2023, wherein Plaintiffs took nothing on their First Amended Complaint. Plaintiffs’ motions for new trial and vacate judgment were denied on April 18, 2023.  

            On March 20, 2023, Plaintiffs filed the instant motion to tax Defendants’ costs.     

LEGAL STANDARD

             The statutory scheme for cost recovery establishes three categories of trial preparation expenses: (1) one category allowable as a matter of right to the prevailing party (Code Civ. Proc., § 1033.5, subd. (a)); (2) one category disallowable unless expressly authorized elsewhere by law (Id., § 1033.5, subd. (b)); and (3) one category allowable or disallowable in the court’s discretion (Id., § 1033.5, subd. (c)(4)). Even where costs are deemed allowable, such costs are only recoverable to the extent that they are (1) reasonably necessary to the conduct of the litigation rather than merely convenient or beneficial to its preparation and (2) reasonable in amount. (Id., § 1033.5, subd. (c)(2)-(3).)

DISCUSSION

            Plaintiffs object to the $15,440 of court reporter fees listed as Item 11. The cost of transcripts not ordered by the court are not recoverable. (Code Civ. Proc., § 1033.5(b)(5).) However, general court reporter fees are recoverable. (Id., subd. (a)(11).) Defendants concede that $1,520 were for draft transcripts. The remaining costs were incurred for the court reporter, not transcripts. (Rosene Decl. ¶ 2, Ex. 1.) Therefore, Item 11 is stricken in the amount of $1,520.

            Plaintiffs object to $3,291.97 out of the $16,861.29 listed in Item 12 for models, enlargements, and photocopies of exhibits. Plaintiffs argue that a portion of the costs represents items not used at trial and separate from the trial binder, and therefore not reasonably necessary. In opposition, defense counsel explains how the materials were used. (Rosene Decl. ¶¶ 3-5.) The Court finds these costs to have been reasonably incurred. Defendants stipulate that the cost of editing the video deposition of Erik Lawson and Les Zellan should be cut in half, or $686.25.  

CONCLUSION

            Plaintiffs’ motion to tax costs is GRANTED in the amount of $2,206.25 ($1,520 + $686.25). Georgina Teran is not responsible for costs beyond August 5, 2020.