Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!


More On

Breaking down exactly what costs are taxable under Title 28 of the U.S. Code Section 1920(4

The Country Vintner of North Carolina v. E. & J. Gallo Winery Inc clarified the scope of recoverable costs

Read more on this case here.

In The Country Vintner of North Carolina v. E. & J. Gallo Winery Inc., the prevailing party, Gallo, submitted a bill to the court under Title 28 of the U.S. Code Section 1920(4), seeking to recover its e-discovery costs. Gallo attempted to recoup $111,047.75, but the 4th Circuit only allowed it to recover $218.59, because many of the costs it asserted were not taxable under the statute. Below is a breakdown of the specific costs Gallo asserted, according to the 4th Circuit’s decision and whether they were or were not taxable:

  • $71,910: “Flattening” and “indexing” electronically stored information—initial processing that included making the data searchable and removing duplicate files. Not taxable.
  • $15,660: “Searching/Review Set/Data Extraction,” a process that included removing metadata and loading relevant documents onto a “review/production” platform. Not taxable.
  • $178.59: Converting native documents to TIFF or PDF format. Taxable.
  • $74.16: “Bates numbering,” or stamping documents with a number that allowed them to be found later. Not taxable.
  • $40: Moving images to CDs. Taxable.
  • $23,185: Processing, analyzing and preparing data for production. Not taxable.

In this case, the 4th Circuit found that only changing file formats and moving files to CDs counted as “making copies” under the statute, and thus were the only taxable costs. Though the court acknowledged that e-discovery technology makes discovery much more expensive, it did not believe that necessarily meant those costs should be recoverable.

Join the Conversation

Advertisement. Closing in 15 seconds.