Class Action/Costs: $713,463.72 In Putative Class Action Discovery Notification Costs Were Recoverable By Prevailing Defendant

     In re Insurance Installment Fees Case, Case No. D057138 (4th Dist., Div. 1 Dec. 13, 2012) (published) is a situation where defendant appealed class action plaintiffs’ successful motion to tax costs of $713,463.72 that defendant sought to shift to plaintiffs. The costs were those for sending notices to insurance policyholders about discovery of personal information, after notices were ordered sent by the court in a protracted discovery proceeding in a tentatively certified class action case.

     On appeal, the tax costs ruling was reversed.

     Here, the costs were recoverable by the prevailing insurance carrier because (1) the notice was required by law, and (2) the notice was required by court order, so that they were tantamount to special attendant discovery costs bearable by the demanding party (in this case, plaintiffs). (San Diego Unified Port Dist. v. Douglas E. Barnhart, Inc., 95 Cal.App.4th 1400, 1405 (2002).)

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