Justices Dig Into Appellate Cost Awards With No Clear Winner

There was no clear winner following oral arguments on Wednesday as the U.S. Supreme Court considered whether district courts have the discretion to reduce cost awards ordered by an appellate court.

All federal circuit courts—save the New Orleans-based U.S. Circuit Court for the Fifth Circuit—agree that district courts have discretion to reduce the amount of administrative costs the losing party must pay the winning side after an appeal.

The Fifth Circuit’s contrary rule resulted in a more than $2 million cost award against several Texas municipalities—an award that the parties seem to agree is an outlier among typical cost awards. ...