Champion Produce, Inc. v. Ruby Robinson Co.

The cross appeals in this diversity case arise out of a breach of contract. Each party appeals aspects of the district court’s post-judgment order. We affirm. Among other things, we hold that the cost-shifting provision of Federal Rule of Civil Procedure 68 does not permit an award of post-offer attorneys’ fees when the underlying state statute authorizes an award of attorneys’ fees to a prevailing party as part of costs, but when the party seeking attorneys’ fees under the rule is not a prevailing party within the meaning of that statute.

I. Background

Champion Produce, Inc. (“Champion”) grows and packages produce, which it then sells to buyers throughout the United States. Ruby Robinson Co. (“Ruby”) buys produce from companies like Champion, which it resells to retailers and restaurants. In August 1999, Champion and Ruby entered a contract under which Ruby agreed to purchase onions from Champion during the 1999-2000 onion season. The following June, Champion filed suit against Ruby in Idaho state court, alleging that Ruby had breached the contract and seeking $338,137.09 in damages, plus prejudgment interest, attorneys’ fees, and costs. Ruby removed to federal court based on…