Goldberg

Defendants Pacific Indemnity Co. and Federal Insurance Co. (collectively “defendants”) appeal the district court’s denial of their request for expert witness fees and double costs pursuant to Arizona Rule of Civil Procedure 68 (“Arizona Rule 68”). The district court found that Arizona Rule 68 did not apply because it conflicts with Federal Rule of Civil Procedure 68 (“Federal Rule 68”), under which defendants are not entitled to recover costs because judgment was entered in their favor. This court has jurisdiction under 28 U.S.C. § 1291 . For the following reasons, the district court’s decision is affirmed.

Facts and Procedural History

Defendants’ request for expert witness fees and double costs arises out of a breach of contract and bad faith action brought by plaintiffs Mark H. Goldberg, Sherry R. Goldberg and the MH & SR Goldberg Family Trust (collectively “plaintiffs”) against defendants for refusing to raze and rebuild the Goldbergs’ home in response to plaintiffs’ insurance claim that the house intermittently reeked of urine, and that the smell could not be eliminated using traditional remediation measures. Plaintiffs’ complaint alleges that their raze and rebuild…