## Facts

- Plaintiffs sued ASICS and related individual defendants for fraud.
- After a jury trial, defendants prevailed.
- Defendants sought costs under Cal. Code Civ. Proc. § 1032, including expenses for (1) exhibit photocopies, binders, and closing demonstratives, (2) counsel travel to depositions in Japan, and (3) interpreter services for depositions and trial.
- Plaintiffs moved to tax costs, arguing several items were not recoverable, unreasonable, or not reasonably necessary.
- The trial court taxed some costs but allowed the challenged exhibit-related costs, travel, and interpreter fees, entering an amended cost award in defendants’ favor.
- The Court of Appeal affirmed, concluding plaintiffs had not shown an abuse of discretion and publishing to address a split concerning unused exhibit-related costs under § 1033.5(a)(13).
- The state supreme court granted review to resolve whether unused exhibit photocopies and demonstratives are recoverable under § 1033.5.

## Issues

1. Whether costs for photocopies of exhibits and demonstrative aids prepared for trial but not ultimately used are recoverable as a matter of right under Cal. Code Civ. Proc. § 1033.5(a)(13).
2. If not recoverable as of right, whether such costs may be awarded in the trial court’s discretion under § 1033.5(c)(4).

## Decision

- The court affirmed the judgment upholding the cost award, but on narrower reasoning than the Court of Appeal.
- Costs for unused exhibit photocopies and demonstratives are not categorically allowable “as a matter of right” under § 1033.5(a)(13).
- Such costs may be awarded in the trial court’s discretion under § 1033.5(c)(4), provided they are not prohibited and satisfy general statutory limits on necessity and reasonableness.
- Plaintiffs failed to show the trial court abused its discretion in allowing the challenged costs.

## Legal Principles

- Section 1033.5 distinguishes (1) costs allowable as a matter of right, (2) costs not allowable, and (3) costs left to trial-court discretion.
- Under § 1033.5(a)(13), costs for “models, enlargements, and photocopies of exhibits” are allowable as of right only if they were “reasonably helpful to aid the trier of fact,” which does not categorically include materials never used at trial.
- Under § 1033.5(c)(4), a trial court may award costs “not mentioned” in the statute in its discretion when not barred by § 1033.5(b).
- Discretionary cost awards must satisfy § 1033.5(c)(2) (reasonably necessary to the conduct of the litigation, not merely convenient) and § 1033.5(c)(3) (reasonable in amount).
- Appellate review of cost decisions is generally for abuse of discretion.

## Conclusion

Unused exhibit photocopies and demonstratives are not automatically recoverable under § 1033.5(a)(13), but trial courts may award them as discretionary costs under § 1033.5(c)(4) when the expenses are reasonably necessary and reasonable; the cost award here was affirmed because no abuse of discretion was shown.


Segal v. ASICS Am. Corp., 12 Cal. 5th 651 (Cal. 2022)