In United States ex rel. Associates Against Outlier Fraud v. Huron Consulting Grp, Inc., No. 15-425-cv, (2d Cir. Mar. 23, 2016), plaintiff brought an action under the False Claims Act (FCA), alleging that defendants facilitated excessive Medicare and Medicaid payments to a medical center. The district court granted summary judgment in favor of defendants, and subsequently granted defendants’ petition for costs, which consisted primarily of costs of deposition transcripts used in resolving the summary judgment motions. Plaintiff appealed the award of costs, arguing that the costs for deposition transcripts were precluded by 31 U.S.C. § 3730(d)(4), which provides that a court may award “reasonable attorneys’ fees and expenses” under the FCA only where the suit was clearly frivolous, vexatious or brought for the purposes of harassment – a standard that was not met here. The Second Circuit affirmed, holding that “costs” and “expenses” had distinct meanings under the FCA and Federal Rules of Civil Procedure and, therefore, the FCA’s provision for the limited shifting of “fees and expenses” (§ 3730(d)(4)) did not apply to defendants’ “costs” of deposition transcripts. Instead, such costs are governed by FRCP 54(d)(1) and 28 U.S.C. § 1920, which provide for the award of certain costs, including transcript costs, to the prevailing party, without requiring a showing that the suit was frivolous. In so holding, the Second Circuit joined the Eighth, Ninth and Tenth Circuits on this issue.
Register now for your free, tailored, daily legal newsfeed service.
Questions? Please contact firstname.lastname@example.orgRegister
“Costs” Differ From “Expenses” Under FCA And Federal Rules
Popular articles from this firm
If you would like to learn how Lexology can drive your content marketing strategy forward, please email email@example.com.
Related topic hubs
Huawei Technologies (USA)
“I make an effort to read at least several articles each day and regularly share the particularly relevant or interesting articles with my colleagues. I greatly appreciate the inclusion of the Lexology service by the State Bar of Texas and have recommended that my friends and colleagues join the Corporate Counsel Section of the State Bar in order to obtain this service for themselves.”