Often a court judgment contains costs of the lawsuit and attributes payment of those costs to the parties depending on the outcome of the lawsuit. The distribution of costs may be disputed by a motion to tax costs. This motion allows a party who is charged with paying the costs the ability to dispute the items or amounts claimed in the judgment.
What is a motion to tax costs?
The adverse party who wants to object to certain costs can do so by filing a motion to tax costs. (Ladas v. California State Auto. Assn. 19 Cal.App.4th 761, ) This motion can object to an entire cost memorandum or specific costs but must name these specific costs. (C.R.C., Rule 3.1700(b)(2).) If a party fails to file a motion to tax costs that may be considered as a waiver of the right to object to the costs awarded. (Jimenez v. Oxnard (1982) 134 Cal.App.3d 856, 859) Santos v. Civil Service Bd. (1987) 193 Cal.App.3d. 1442, 144, citing the text.)
A verified memorandum of costs will act as a list of costs the party is entitled to. If this memorandum is created it acts as prima facie evidence of the costs’ propriety. The party filing the motion must show the costs are unreasonable or unnecessary. (Ladas, 19 Cal.App.4th 761 at 774; see Nelson v. Anderson 72 Cal.App.4th 111, 131 (They must do so in order to have the costs reversed.)). However, once these costs are properly objected to, the burden shifts to the party claiming those costs. (Whitaker v. Moran, 23 Cal.App. 758, 761.)
What is an example?
For example, “Julie” and “Shawn” owned a house together. After they decided to part ways Julie and Shawn were undecided on whether they will sell or keep the house. Julie filed a partition action asking the court to order the sale of the house. The court ordered the home to be sold and the sale was completed.
Julie filed a cost memorandum requesting reimbursement for her costs incurred during the partition. Julie asked the court to have Shawn pay for court filing fees, service of process fees, a court ordered appraisal and a property inspection. Julie additionally asked for payment for a second private appraisal, cosmetic upgrades to the home, and a professional staging of the house.
Shawn didn’t agree with all the expenses Julie had listed. He believes Julie did not need spend money on the second appraisal, cosmetic upgrades, or the professional staging of the house. Shawn filed a motion to tax costs to strike costs that were unreasonable or unnecessary. When Shawn files his motion to tax costs in this property case involving co-ownership and separation from Julie, the court will first address the procedural requirements. Shawn must file the motion within 15 days of being served with Julie's Memorandum of Costs, and the motion must specifically identify the costs being challenged and the reasons for the objection. If Shawn meets these procedural requirements, the court will then evaluate the substantive merits of the motion. The court will assess whether the costs claimed by Julie are allowable. Costs that are not expressly authorized by law, not reasonably necessary to the litigation, or excessive in amount may be disallowed. For example, costs for private appraisals, home upgrades, or professional staging may be deemed unnecessary or personal expenses and thus not recoverable. However, costs such as the filing fees and service of process are less likely to be taxed unless they are shown to be excessive or improperly documented. This process ensures that only legitimate litigation expenses are reimbursed, balancing fairness to both parties.
Conclusion
Motion to tax costs is a tool that ensures fairness in litigation expenses. Through the review of costs claimed, the court can determine what expenses are reasonable and necessary and what are not. This process ensures that excessive or improper costs are not reimbursed. If the court finds that certain costs claimed by a party are not allowable or necessary under California law, those costs will be taxed and removed from the total award. This ensures that other party is not unfairly burdened with expenses that are not directly related to the litigation. By looking closely the claimed costs, the court upholds the equity and ensures that only legitimate litigation expenses are reimbursed, fostering a fair resolution for both parties.
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