Koch

Appellants voluntarily dismissed this action in the district court pursuant to Fed. R.Civ.P. 41(a)(2). They appeal the district court’s order taxing $32,440.95 in costs against them. We reverse the district court’s judgment and remand for findings as to which costs arose from the preparation of work product rendered useless by the dismissal of this action, and which resulted from the preparation of work product which may be useful in pending state court litigation between the parties.

BACKGROUND

Appellants filed five actions, one in federal court and four in state court, arising from the allegedly fraudulent land transaction in Arizona. After remand from this court, see Koch v. Hankins, 928 F.2d 1471 (9th Cir.1991), defendants moved for summary judgment. Appellants then moved for voluntary dismissal without prejudice. The district court did not grant appellants’ motion. Instead, it gave them the option of receiving a ruling on the defendants’ pending motion for summary judgment (which it indicated it would grant thereby subjecting plaintiffs to attorneys fees and costs), or accepting a voluntary dismissal with prejudice to their federal claim and without prejudice to their state…