Justices Curb Trial Court Discretion in Appellate Cost Award (2)

The U.S. Supreme Court on Thursday said trial courts can’t on their own change an appellate cost award to litigants, siding with the only circuit that limited the discretion of federal district judges.

In a unanimous decision authored by Samuel Alito, the justices delivered a win for online booking sites like Hotels.com that were awarded more than $2 million in costs in defeating a lawsuit by Texas cities and towns over their tax collection practices.

The case involved “appellate costs,” which are an exception to the so-called American rule requiring parties to bear their own costs in litigation.

Once an ...