Judge: Melvin D. Sandvig, Case: PC058126, Date: 2023-04-18 Tentative Ruling

Case Number: PC058126    Hearing Date: April 18, 2023    Dept: F47

Dept. F47

Date: 4/18/23

Case #PC058126

 

MOTION TO STRIKE ENTIRE MEMORANDUM OF COSTS

ALTERNATIVELY,

TO STRIKE OR TAX COSTS

 

Motion filed on 1/19/23.

 

MOVING PARTY: Plaintiff Hari Hara, LLC

RESPONDING PARTY: Defendant Team Enterprises, LLC

NOTICE: ok

 

RELIEF REQUESTED: An order striking the entire Memorandum of Costs filed by Defendant Team Enterprises, LLC, on 1/4/23, or, in the alternative, an order striking certain costs in the Memorandum of Costs and taxing certain other costs.

 

RULING: The request to strike the entire memorandum of costs is denied.  The request to strike or tax certain costs is granted, in part, and denied, in part, as set forth below. 

 

SUMMARY OF RELEVANT PROCEDURAL HISTORY

 

On 7/18/19, this Court granted Defendant Team Enterprises, LLC’s (Team) first motion for summary judgment and on 5/26/20 judgment was entered.  (See 7/18/19 Minute Order; 5/26/20 Judgment).  The Judgment was reversed and remanded.  (See 12/23/21 Court Order on Remittitur).  

 

On 11/10/22, this Court granted Team’s second motion for summary judgment in favor of Team and against Plaintiff Hari Hara, LLC (Plaintiff).  (See 11/10/22 Minute Order).  On 12/20/22, an order on a Stipulated Request for Voluntary Dismissal of Entire Case was entered.  (See 12/20/22 Stipulated Request for Voluntary Dismissal of Entire Case).  On 12/20/22, Judgment was entered based on the order granting Team’s Motion for Summary Judgment and the Stipulated Request for Voluntary Dismissal of Entire Case.  (See 12/20/22 Judgment).  On 1/4/23, Team filed and served a Memorandum of Costs seeking a total of $22,296.25 from Plaintiff.  (See 1/4/23 Memorandum of Costs).   

 

On 1/19/23, Plaintiff filed and served the instant motion seeking an order striking the entire Memorandum of Costs filed by Team on 1/4/23, or, in the alternative, an order striking certain costs in the Memorandum of Costs and taxing certain other costs.  Team has opposed the motion and Plaintiff has filed a reply to the opposition. 

 

ANALYSIS

 

ENTIRE MEMORANDUM OF COSTS

 

Plaintiff contends that in the Stipulated Request for Voluntary Dismissal of Entire Case, Team waived its claim for costs in this matter and that the Court erred in signing the Judgment which provides that Team is entitled to recover costs of suit.  This Court disagrees.

 

The 12/20/22 Stipulated Request for Voluntary Dismissal of Entire Case and Order thereon provides:

 

Plaintiff and Cross-Defendant, Hari Hara LLC (“Plaintiff”), Defendant and Cross-Complainant Team Enterprises, LLC, formerly known as Team Enterprises, Inc. (“Team”) and Cross-Defendant Mark Weinstein, trustee of the Weinstein Family Trust, MJW Investments Inc., and Bouquet Canyon Road LP (“Weinstein Parties”), (collectively, the “Parties”), through their respective attorneys of record, enter into this stipulation and request for dismissal as follows.

 

1. Whereas, on November 10, 2022, Team’s motion for summary judgment against Plaintiff came on regularly for hearing as scheduled, during which the Court granted Team’s motion against Plaintiff.

 

2. Whereas, Team requests that judgment be entered in the proposed judgment that accompanies this stipulation.

 

3. Whereas, the Court’s ruling also resolves Team’s first amended cross-complaint.

 

Therefore, it is hereby stipulated and agreed by and between the Parties that:

 

1. Team’s First Amended Cross-Complaint against Plaintiff and Weinstein shall be dismissed, without prejudice. Team and Weinstein shall bear their own costs and fees of litigation.        

 

2. The Court did not waive court fees and costs.

 

The Parties respectfully request that the Court enter the foregoing dismissal without prejudice, which will serve to dispose of the entire action that remains apart from the judgment in favor of Team and against Plaintiff to be entered by the Court, as submitted concurrently herewith.

 

ORDER

 

Based on the forgoing, IT IS HEREBY ORDERED THAT:

 

1. Team’s Cross-Complaint shall be dismissed, without prejudice. Team and Weinstein shall bear their own costs and fees of litigation.

 

2. This Order of Dismissal serves to dispose of the entire action that remains apart from the judgment in favor of Team and against Plaintiff to be entered by the Court.

 

IT IS SO ORDERED.

 

 

The Judgment, entered the same day, states:

 

The motion for summary judgment, or summary adjudication in the alternative, filed by Defendant and Cross-Complainant Team Enterprises, LLC, formerly known as Team Enterprises, Inc. (“Team”) against Plaintiff Hari Hara, LLC (“Plaintiff”) came on regularly for hearing as scheduled in Department F47 of the above-captioned court on November 10, 2022 at 8:30 a.m., the Honorable Melvin D. Sandvig presiding, and the Court entered an Order granting Team’s motion as to all claims asserted against Team in the First Amended Complaint. Team’s first amended cross-complaint, the only other pleading pending in this action, has been dismissed without prejudice pursuant to the Stipulated Request for Voluntary Dismissal of Entire Case; Order entered by this Court on December 5, 2022. Said stipulation was entered into by the parties in order to facilitate the entry of a final, appealable judgment.

 

IS HEREBY ORDERED, ADJUDICATED AND DECREED that judgment shall be entered in favor of defendant Team and against Plaintiff on all causes of action in the First Amended Complaint, and Plaintiff’s claims against Team in the First Amended Complaint are hereby dismissed with prejudice. Team is entitled to recover costs of suit and may file and serve a memorandum of costs and any other post judgment motions. This is a final, appealable judgment as all remaining claims are dismissed without prejudice pursuant to the Court’s Order on the stipulated voluntary dismissal.

 

When read together, it is clear that the waiver of costs was only between Team and Weinstein as to Team’s Cross-Complaint.  The stipulated dismissal expressly states that it is intended “to dispose of the entire action that remains apart from the judgment in favor of Team and against Plaintiff to be entered by the Court, as submitted concurrently herewith.” (emphasis added).  There would be no logical reason for Team to waive its right to costs as the prevailing party on Plaintiff’s claims as Team’s motion for summary judgment had already been granted.  The foregoing interpretation is supported by the language in the Judgment which specifically states that Team, but not Weinstein, is entitled to recover costs of suit and may file and serve a memorandum of costs and any other post judgment motions.  The fact that Plaintiff’s counsel reviewed and approved the stipulated dismissal and the Judgment before they were submitted to the Court for entry further supports a finding that all parties intended that the only costs being waived were as between Team and Weinstein on Team’s Cross-Complaint based on indemnity.  (See Monroe Decl., Ex.2, 3).

 

Based on the foregoing, Plaintiff’s request to strike the entire memorandum of costs is denied. 

 

STRIKE AND TAX CERTAIN COSTS  

 

A verified memorandum of costs is prima facie evidence of the propriety of items that appear on their face to be proper charges and the burden is on the party seeking to tax such costs to show they were not reasonable or necessary.  Ladas (1993) 19 CA4th 761, 774-776; Bender (2013) 217 CA4th 968, 989; Jones (1998) 63 CA4th 1258, 1266 (Mere statements in points and authorities and in declarations of counsel are insufficient to rebut a prima facie showing.).  However, if items are properly objected to, the burden of proof is on the party claiming them as costs.  Ladas, supra.  Whether an item in a memorandum of costs was reasonably necessary is a question of fact for the trial court, whose decision is reviewed on appeal for abuse of discretion.  Bender, supra. 

 

Item 1.b. ($513.75):  Plaintiff seeks to strike the cost associated with the filing of Team’s first motion for summary judgment on 4/16/19 which was reversed and remanded on appeal.  The reversal was based on Team’s failure to meet its burden of showing that Plaintiff’s claims were barred by the 2001 Settlement Agreement due to its failure to submit a copy of Exhibit 1 to the Settlement Agreement.  (See 9/29/21 Court of Appeal Opinion).  As such, the Court finds that the cost was not reasonably necessary to the conduct of the litigation and is, therefore, stricken.  See CCP 1033.5(c)(2).   

 

Item 4.c. ($2,291.55): Plaintiff seeks to strike the costs for the taking and videotaping of the deposition of Dr. Surya Reddy as the person most knowledgeable for Plaintiff because Plaintiff claims that Team did not use Dr. Reddy’s testimony in its motion for summary judgment.  Contrary to Plaintiff’s assertion, portions of Dr. Reddy’s deposition were used in support of Team’s motion for summary judgment.  (See Appendix of Exhibits, Vol. I, Ex.3 filed 8/18/22).

 

It is not until the reply that Plaintiff specifically challenges the cost associated with videotaping the deposition.  However, such a cost is specifically recoverable.  CCP 1033.5(a)(3)(A).  The burden of proof that a deposition was “unnecessary” or that the cost of taking the deposition was “unreasonable” is on the party seeking to have the item taxed or reduced.  County of Kern v. Ginn (1983) 146 CA3d 1107, 1113; Nelson (1999) 72 CA4th 111, 131 (The party seeking to tax deposition costs of a designated expert has the burden to prove the cost was unnecessary at the time it was incurred or was unreasonable.).  Plaintiff has failed to meet its burden as to this item. 

 

Item 4.e. ($3,789.29): Plaintiff seeks to strike/tax the costs associated with the taking of Suzi Rosen’s deposition ($990.00 for videotaping + $2,689.29 for deposition costs).  Plaintiff argues that because the deposition was not used in support of Team’s motion for summary judgment, it was not reasonably necessary to the conduct of the litigation and should be stricken.  See CCP 1033.5(c)(2).  The fact that the deposition testimony may not have been specifically used in support of the summary judgment does not establish that the cost was unnecessary at the time the deposition was taken.  See Nelson, supra.  As explained in the opposition to the instant motion, the deposition and costs related thereto were reasonably necessary to the conduct of the litigation as Rosen was deposed as the person most qualified from Partners Engineering & Science, Inc., Plaintiff’s environmental consultant.  (See Greben Decl. ¶¶3-4 and Ex.1 thereto; Opposition, p.5:12-p.6:2).  As such, Plaintiff’s request to strike and/or tax this item is denied. 

 

Item 4.e. ($2,966.30 & $3,143.55): Plaintiff seeks to strike and/or tax the costs associated with the depositions of Chris Carson ($2,966.30) and David Horrell ($3,143.55), both of Partners Engineering, Plaintiff’s environmental consultant.  Again, Plaintiff argues that the deposition testimony of these individuals was not used in support of Team’s motion for summary judgment and, therefore, the costs were not reasonably necessary to the conduct of the litigation.  CCP 1033.5(c)(2).  Plaintiff then contends that there was no justification for videotaping the depositions.

 

Since the costs for taking, video recording and transcribing necessary depositions are proper on their face based on the verified cost memorandum, Plaintiff bears the burden of establishing that the costs were not reasonably necessary or were unreasonable.  CCP 1033.5(a)(3)(A); Ladas (1993) 19 CA4th 761, 774-776; Bender (2013) 217 CA4th 968, 989; Jones (1998) 63 CA4th 1258, 1266; County of Kern v. Ginn (1983) 146 CA3d 1107, 1113; Nelson (1999) 72 CA4th 111, 131.  Plaintiff has failed to meet its burden.

 

The opposition to the instant motion further supports a finding that the costs related to these depositions were reasonably necessary to the conduct of the litigation and reasonable in amount as these witnesses were key to Plaintiff’s environmental claims and could be out of subpoena range at the time of trial.     

 

Based on the foregoing, Plaintiff’s request to strike and/or tax these costs is denied.    

 

Item 5.d. ($75.00 & $95.00): Plaintiff seeks to strike the costs for service of process on Mark Weinstein ($75.00) and his entities, MJW Investments and BCR, ($95.00) because these parties were dismissed by Team pursuant to the Stipulated Requests for Dismissal.  Therefore, Plaintiff contends the costs were not reasonably necessary to the conduct of the litigation.  CCP 1033.5(c)(2).

 

Team’s claims against Weinstein and his entities were based on indemnity and essentially became moot once Team’s motion for summary judgment was granted.  The parties stipulated to dismiss the cross-complaint so that a final appealable judgment could be entered. 

 

Based on the foregoing, service on Weinstein and his entities was reasonably necessary for Team to pursue its indemnity claims, if its request for summary judgment was denied.  As such, Plaintiff’s request to strike these costs is denied.  

 

Item 8.a. ($110.00): Plaintiff seeks to strike the $110.00 witness fee for Suzi Rosen, who works as Plaintiff’s environmental consultant at the subject property on the basis that Plaintiff is not aware of what the $110.00 consists of; therefore, it is unreasonable on its face.  The witness fees are set forth in the deposition transcript of Rosen.  (Greben Decl. ¶5, Ex.2).  Plaintiff has failed to meet its burden to strike this item.     

 

Item 16 – Other – Courier services, certified record requests fees, copy services ($2,512.74): Since these items are not expressly recoverable, they are not proper on their face and Team bears the burden of establishing that they were reasonably necessary to the conduct of the litigation and that they are reasonable in amount.  See Ladas, supra.

 

The Court finds that Team has failed to meet its burden as to the majority of the costs claimed in this item.  Team identifies these costs as being for “Courier services, certified record requests fees, copy services.”  (See Memorandum of Costs filed 1/4/23, p.1, No.16).  Attachment 16 to the memorandum of costs indicates that $392.83 is sought for “Copy Service – BCR records on 9/11/18.  Photocopying charges, except for exhibits, are specifically not recoverable.  CCP 1033.5(b)(3).  Team has failed to establish that such costs are recoverable. 

 

Team justifies the “courier services” costs on the basis that it was complying with the Court’s First Amended General Order ¶9 which it claims required the delivery of courtesy copies on the same day or next business day before 10:00 a.m. to the Court before COVID-19.  However, the 5/3/19 First Amended General Order Re Mandatory Electronic Filing for Civil only required the provision of Printed Courtesy Copies for:   

 

a)For any filing electronically filed two or fewer days before the hearing, a courtesy copy must  be delivered to the courtroom by 4:30 p.m. the same business day the document is efiled. If the efiling is submitted after 4:30 p.m., the courtesy copy must be delivered to the courtroom by 10:00 a.m. the next business day.

b)Regardless of the time of electronic filing, a printed courtesy copy (along with proof of electronic submission) is required for the following documents:

i)Any printed document required pursuant to a Standing or General Order;

ii)Pleadings and motions (including attachments such as declarations and exhibits) of 26 pages or more;

iii)Pleadings and motions that include points and authorities;

iv)Demurrers;

v)Anti-SLAPP filings, pursuant to Code of Civil Procedure section 425.16;

vi)Motions for Summary Judgment/ Adjudication; and

vii)Motions to Compel Further Discovery.

 

From Attachment 16, it can only be determined that the Courier Service charge for delivery of MSJ to Court on 4/29/19 falls under one of the categories set forth in the General Order.  However, for the same reasons the Court is striking the filing fee related to Team’s’ first motion for summary judgment, the Court also finds that this cost was not reasonably necessary.  Since it is not clear that any of the other documents for which courier fees were incurred fall into one of the covered categories, Team has failed to meet its burden with regard to the remaining courier charges. 

 

Based on Plaintiff’s prior objections to records of the Weinstein Litigation, the Court finds that it was reasonably necessary for Team to incur the costs associated with obtaining certified copies of such records to submit in support of its second motion for summary judgment. 

 

Based on the foregoing, $1,503.74 in costs are taxed from Item 16.

 

CONCLUSION

 

The request to strike the entire memorandum of costs is denied. 

 

The alternative request to strike and/or tax certain items in the memorandum of costs is granted as to Item 1.b. in the amount of $513.75 and Item 16 in the amount of $1,503.74 and is otherwise denied. 

 

Based on the foregoing, Item 1 is reduced to $1,078.80 and Item 16 is reduced to $1,009.00 and Team is entitled to recover a total of $20,278.76.