National Information Services, Inc. v. TRW, Inc.

This case raises the question of when a district court may deny costs to a prevailing party. See Fed.R.Civ.P. 54(d)(1). The district court denied costs to the prevailing defendants on the ground that the plaintiffs brought their case in good faith and without vexatious purpose. We conclude that the district court abused its discretion.

I.

This case began when plaintiffs National Information Services, Inc., Credit Data of Illinois, Inc., Informative Research, Inc., and CDB Infotek (collectively, “Plaintiffs”) filed a federal antitrust action against defendants TRW, Inc. and Credit Bureau Reports, Inc. (collectively, “Defendants”). The complaint alleged a series of federal and state antitrust violations. It also included a number of business tort claims under California and Oregon law.

After extensive discovery, briefing, and oral argument, the district court granted Defendants’ motion for summary judgment in its entirety. Plaintiffs then further supplemented the record and filed a motion for reconsideration. After full briefing and another round of oral argument, the district court denied the motion to reconsider and entered summary judgment for Defendants.

As prevailing…