Rodriguez v. Nike Retail Services, Inc. et al
Filing
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ORDER OVERRULING 107 RODRIGUEZ'S OBJECTION TO 106 NIKE'S APPLICATION TO THE CLERK TO TAX COSTS. Signed by Judge Beth Labson Freeman on 1/16/2018. (blflc2S, COURT STAFF) (Filed on 1/16/2018)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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SAN JOSE DIVISION
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ISAAC RODRIGUEZ,
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Plaintiff,
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v.
NIKE RETAIL SERVICES, INC.,
Case No. 14-cv-01508-BLF
ORDER OVERRULING RODRIGUEZ’S
OBJECTION TO NIKE’S BILL OF
COSTS
Defendant.
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United States District Court
Northern District of California
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After granting Defendant Nike Retail Services, Inc.’s (“Nike”) motion for summary
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judgment, the Court entered judgment in favor of Nike and against Plaintiff Isaac Rodriguez
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(“Rodriguez”) and the class on September 12, 2017. See ECF 100, 101. Thereafter, Nike filed a
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Bill of Costs, which Rodriguez objects to on a single ground. See ECF 106, 107. Specifically,
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Rodriguez argues that the entire Cost Bill is objectionable pursuant to California Labor Code
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§ 218.5. See ECF 107 (“Obj.”). According to Rodriguez, Nike is entitled to its costs as the
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prevailing party in this suit only if the Court finds that Rodriguez brought this action in bad faith.
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Nike responds that the award of costs is a procedural matter governed by federal law, and
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§ 218.5 does not apply. See Reply, ECF 108. Nike therefore requests that the Clerk award costs
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against Rodriguez in the full amount of $19,316.00 as detailed in Nike’s Bill of Costs. The Court
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agrees with Nike, and finds that Nike is entitled to its costs under Federal Rule of Civil Procedure
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54(d). For the reasons that follow, Rodriguez’s objection to Nike’s bill of costs at ECF 107 is
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OVERRULED.
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The only basis for Rodriguez’s objection to Nike’s Bill of Costs is that pursuant to Labor
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Code § 218.5, attorney’s fees and costs should only be awarded to the prevailing party “if the
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court finds that the employee brought the court action in bad faith.” Cal. Lab. Code § 218.5.
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Rodriguez argues that § 218.5 applies to the court’s determination of whether to award costs to a
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prevailing party in this diversity case, because federal courts apply the law of the forum state. See
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Obj. at 3. Rodriguez then spends his entire brief arguing that this certified class action was
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brought in good faith. See Obj. at 3-6.
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For example, Rodriguez points out that the Ninth Circuit has certified two relevant legal
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questions to the California Supreme Court in order to determine (1) whether time spent in security
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inspections is compensable under California law; and (2) whether the de minimis doctrine applies
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to California Labor Code claims. Id. Because this Court granted Nike’s motion for summary
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judgment based on the de minimis doctrine, Rodriguez argues that there can be no finding that
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Rodriguez brought this action in bad faith, and Nike’s Bill of Costs should be stricken and denied
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United States District Court
Northern District of California
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in its entirety. Id. at 6.
Nike argues that § 218.5 does not apply to Nike’s Bill of Costs, because the award of costs
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is a procedural matter and Federal Rule of Civil Procedure 54(d) applies. See Reply at 1. Rule
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54(d)(1) provides that “[u]nless a federal statute, these rules, or a court order provides otherwise,
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costs—other than attorney's fees—should be allowed to the prevailing party.” There is no dispute
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that Nike is the prevailing party in this action. Therefore, if Rule 54(d) applies, Nike is entitled to
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its costs.
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The Court finds that Rule 54(d) applies here. Contrary to Rodriguez’s argument, “[a]n
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award of standard costs in federal district court is normally governed by Federal Rule of Civil
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Procedure 54(d), even in diversity cases.” Champion Produce, Inc. v. Ruby Robinson Co., 342
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F.3d 1016, 1022 (9th Cir. 2003). Several district courts have rejected Rodriguez’s precise
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arguments regarding the applicability of § 218.5 to costs instead of Rule 54(d). See, e.g.,
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Andresen v. Int’l Paper Co., No. 2:13-CV-02079-CAS, 2015 WL 3648972, at *4 (C.D. Cal. June
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10, 2015) (“the Court sees no reason to depart from the general rule…that federal law governs
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whether costs should be awarded.”); Drumm v. Morningstar, Inc., 695 F. Supp. 2d 1014, 1027
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(N.D. Cal. 2010) (“Since the awarding of costs here is procedural, not substantive, federal law
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governs.”). As recently as December 22, 2017, another Court in this District held that federal law
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governs a nearly identical dispute. See Chavez v. Converse, Inc., No. 15-CV-03746 NC, 2017 WL
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6620877, at *1 (N.D. Cal. Dec. 22, 2017). The Court finds these cases persuasive.
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Moreover, Rodriguez relies on cases that applied § 218.5 to a prevailing party’s motion for
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attorney’s fees, not to a prevailing party’s application for costs. See Rocheleau v. Microsemi
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Corp., Inc., No. SACV1301774CJCJPRX, 2015 WL 6164846, at *1 (C.D. Cal. Aug. 3, 2015);
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Johnson v. Hewlett-Packard Co., No. 11-17062, 2014 WL 5280490 (9th Cir. July 8, 2014).
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Rodriguez does not cite to any cases that apply § 218.5 to costs instead of Rule 54(d). The Court
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is therefore not convinced that § 218.5 applies to Nike’s Bill of Costs, and the Court need not
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make a determination as to whether Rodriguez brought this action in bad faith.
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For the foregoing reasons, the Court finds that Nike is entitled to its costs under Federal
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Rule of Civil Procedure 54(d), and Rodriguez’s objection to Nike’s Bill of Costs on the ground
that § 218.5 applies is OVERRULED. Moreover, because Rodriguez does not challenge the
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United States District Court
Northern District of California
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propriety of any specific costs in Nike’s Bill of Costs, Nike is entitled to its permissible costs
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pursuant to Rule 54(d) and Civil Local Rule 54-3. The Clerk is instructed to tax costs accordingly.
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IT IS SO ORDERED.
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Dated: January 16, 2018
______________________________________
BETH LABSON FREEMAN
United States District Judge
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