\ Ninth Circuit Holds That The FCRA Allows A Prevailing Plaintiff To Recover Non-Taxable Costs\

By Strasburger & Price, LLP

Jul 6, 2010

Grove v. Wells Fargo Fin. Cal., Inc., 606 F.3d 577 (9th Cir. 2010)

Facts: Plaintiff sent letters to Defendant disputing Defendant’s reporting that Plaintiff was delinquent on his automobile loan to the consumer reporting agencies (“CRAs”). After Defendant failed to change the reported information, Plaintiff filed suit against Defendant under the FCRA. Just before trial, the parties settled, and Defendant agreed to notify the CRAs to delete the disputed information and also agreed to pay Plaintiff $20,000 plus costs and attorney’s fees. The district court denied Plaintiff’s request for taxable costs after reasoning that it lacked discretion to award non-taxable costs. Plaintiff appealed, and the Ninth Circuit reversed and held the district court had discretion to award non-taxable costs.

Attorneys’ Fees and Costs. The issue before the Court was whether the expense-shifting provision of the FCRA authorized district courts to award costs that otherwise would be non-taxable under 28 U.S.C. § 1920. Because the phrase “reasonable attorney’s fees” includes certain litigation expenses and the FCRA provides for “reasonable attorney’s fees,” the Court concluded that district courts “have discretion to award non-taxable costs to prevailing parties under the FCRA and that the district court erred in concluding otherwise.”