Millard Gutter Co. v. American Family Ins. Co. , 300 Neb. 466 ( 2018 )


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    MILLARD GUTTER CO. v. AMERICAN FAMILY INS. CO.
    Cite as 
    300 Neb. 466
    Millard Gutter Company, a corporation
    doing business as M illard Roofing and
    Gutter, appellant, v. A merican Family
    Insurance Company, appellee.
    ___ N.W.2d ___
    Filed July 13, 2018.    No. S-17-485.
    1.	 Jurisdiction: Appeal and Error. The question of jurisdiction is a ques-
    tion of law, upon which an appellate court reaches a conclusion indepen-
    dent of the trial court.
    2.	 Costs: Appeal and Error. The decision of a trial court regarding taxing
    of costs is reviewed for an abuse of discretion.
    3.	 Judgments: Words and Phrases. A judicial abuse of discretion exists
    when the reasons or rulings of a trial judge are clearly untenable,
    unfairly depriving a litigant of a substantial right and denying just
    results in matters submitted for disposition.
    4.	 Statutes: Appeal and Error. Statutory interpretation presents a question
    of law, for which an appellate court has an obligation to reach an inde-
    pendent conclusion irrespective of the decision made by the court below.
    5.	 Dismissal and Nonsuit. Generally speaking, under 
    Neb. Rev. Stat. §§ 25-601
     and 25-602 (Reissue 2016), a plaintiff has the right to dismiss
    an action without prejudice any time before final submission of the case,
    so long as no counterclaim or setoff has been filed by an opposing party.
    6.	 ____. The statutory right to voluntary dismissal under 
    Neb. Rev. Stat. §§ 25-601
     and 25-602 (Reissue 2016) is not a matter of judicial grace or
    discretion, but neither is it absolute or without limitation.
    7.	 ____. Under certain circumstances, a district court has the authority to
    deny a voluntary dismissal pursuant to 
    Neb. Rev. Stat. §§ 25-601
     and
    25-602 (Reissue 2016) and may attach conditions to the dismissal where
    justice and equitable principles so require.
    8.	 Summary Judgment: Dismissal and Nonsuit. A motion for summary
    judgment can be a final submission that will prevent voluntary dismissal
    under 
    Neb. Rev. Stat. § 25-601
     (Reissue 2016).
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    MILLARD GUTTER CO. v. AMERICAN FAMILY INS. CO.
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    9.	 Dismissal and Nonsuit: Costs. 
    Neb. Rev. Stat. § 25-602
     (Reissue 2016)
    gives plaintiffs in district court the right to dismiss their action without
    prejudice, upon payment of costs, when no counterclaim or setoff has
    been filed by the opposing party.
    10.	 Costs. Litigation expenses are not recoverable unless provided for by
    statute or a uniform course of procedure.
    11.	 Costs: Legislature. It is within the province of the Legislature to desig-
    nate specific items of litigation expense which may be taxed as costs.
    12.	 Trial: Evidence: Costs. The electronic presentation of evidence is not a
    taxable cost.
    13.	 Juries: Costs. Under 
    Neb. Rev. Stat. § 33-138
    (3) (Reissue 2016), the
    payment of jurors for service in the district and county courts shall be
    made by the county.
    Appeal from the District Court for Douglas County: Horacio
    J. Wheelock, Judge. Affirmed in part, and in part reversed.
    Theodore R. Boecker, Jr., of Boecker Law Office, P.C.,
    L.L.O., for appellant.
    Joel D. Nelson and Joel Bacon, of Keating, O’Gara, Nedved
    & Peter, L.L.O., for appellee.
    Donald W. Kleine, Douglas County Attorney, and Cortney
    M. Wiresinger for amicus curiae Douglas County, Nebraska.
    Heavican,        C.J.,    Miller-Lerman,          Cassel,      Stacy,     and
    Funke, JJ.
    Stacy, J.
    Millard Gutter Company, a corporation doing business
    as Millard Roofing and Gutter (Millard Gutter), filed this
    civil action against American Family Insurance Company
    (American Family) in the Douglas County District Court.
    Just prior to jury selection, Millard Gutter filed a voluntary
    dismissal without prejudice. The district court held a hearing,
    after which it entered a judgment of dismissal and taxed costs
    to Millard Gutter, including expenses incurred by American
    Family in setting up courtroom technology and expenses
    incurred by Douglas County in compensating prospective
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    MILLARD GUTTER CO. v. AMERICAN FAMILY INS. CO.
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    jurors. Millard Gutter appeals, arguing that once it filed a vol-
    untary dismissal, the district court lacked authority to make
    any further rulings. Alternatively, Millard Gutter argues the
    district court erred in taxing technology expenses and jury
    expenses as costs.
    We conclude, on the facts of this case, that Millard Gutter’s
    voluntary dismissal had no effect on the district court’s author-
    ity to make further rulings. But we find the court erred in
    taxing technology expenses and jury expenses as costs. We
    therefore reverse that portion of the judgment, and in all other
    respects we affirm.
    I. BACKGROUND
    After a 2013 hailstorm, Millard Gutter performed roof
    repairs for approximately 48 homeowners in the Omaha area,
    all of whom were insured with American Family. In connec-
    tion with those repairs, Millard Gutter took assignments of any
    right the homeowners had to insurance proceeds due under
    their homeowners’ policies. The validity of the assignments is
    not at issue in this appeal.
    In 2015, Millard Gutter filed suit, as assignee of the home-
    owners, against American Family. Millard Gutter’s complaint
    alleged claims for (1) breach of contract, (2) bad faith, (3)
    violations of the Unfair Insurance Trade Practices Act,1 and
    (4) violations of the Unfair Insurance Claims Settlement
    Practices Act.2
    American Family’s answer admitted that it issued insurance
    policies to the Omaha homeowners and had an obligation to
    pay for covered losses caused by the hailstorm, but denied
    that Millard Gutter had valid assignments. American Family
    raised several affirmative defenses, including that it was enti-
    tled to a credit or setoff for payments previously made to the
    homeowners under the insurance policies. American Family’s
    1
    
    Neb. Rev. Stat. §§ 44-1521
     to 44-1535 (Reissue 2010).
    2
    
    Neb. Rev. Stat. §§ 44-1536
     to 44-1544 (Reissue 2010 & Cum. Supp.
    2016).
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    answer also alleged that Millard Gutter’s claims were frivo-
    lous and requested an award of costs and attorney fees under
    
    Neb. Rev. Stat. § 25-824
     (Reissue 2016).
    1. A merican Family Moves for
    Partial Summary Judgment
    American Family moved for partial summary judgment on
    three of Millard Gutter’s four claims for relief. The court
    granted the motion and entered summary judgment in favor
    of American Family on the claims alleging (1) bad faith, (2)
    violations of the Unfair Insurance Trade Practices Act, and (3)
    violations of the Unfair Insurance Claims Settlement Practices
    Act. Neither party asked the court to direct the entry of a final
    judgment under 
    Neb. Rev. Stat. § 25-1315
     (Reissue 2016), and
    the court did not do so.
    The only claims to survive summary judgment were Millard
    Gutter’s claims for breach of contract, which were set for trial
    on January 23, 2017. The parties were given a special jury set-
    ting to minimize the risk that trial would need to be continued
    to accommodate other cases on the court’s docket. Trial was
    expected to last 5 days.
    2. Millard Gutter Files
    Voluntary Dismissal
    During its final trial preparations, Millard Gutter discovered
    “underbilling issues” on some of the roof repairs, and decided
    to dismiss its breach of contract claims without prejudice
    rather than proceed to trial; it planned to refile the action later
    and seek additional damages. Thus, on the morning of January
    23, 2017, just minutes before trial was set to begin, Millard
    Gutter filed a voluntary dismissal without prejudice pursuant
    to 
    Neb. Rev. Stat. § 25-601
     (Reissue 2016).
    3. Court Holds Hearing on Voluntary
    Dismissal and Costs
    Immediately after learning Millard Gutter had filed a volun-
    tary dismissal, the district court held a hearing on the record
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    to discuss the effect of the filing and to address taxable costs.
    When asked what effect the voluntary dismissal should have
    on the claims previously resolved on summary judgment,
    Millard Gutter replied, “Our position is all we’re voluntarily
    dismissing without prejudice are the claims that have not
    already been dismissed, so the remaining claims are what we
    are dismissing.”
    When addressing costs, the hearing focused on the expenses
    incurred by American Family in setting up courtroom tech-
    nology for use during the scheduled trial and the expenses
    incurred by Douglas County to bring in prospective jurors.
    (a) Courtroom Technology Expenses
    American Family hired a court reporting firm to equip the
    courtroom with electronics and display screens for use dur-
    ing the 5-day trial. It was undisputed that the firm spent sev-
    eral hours over 2 days setting up the technology at a cost of
    $1,650. American Family asked that this expense be taxed to
    Millard Gutter. Millard Gutter stipulated to the reasonableness
    of the charges, but took the position that courtroom technol-
    ogy expenses were not properly taxable as costs. American
    Family made no request for other costs or attorney fees
    and did not ask for a determination of frivolousness under
    § 25-824.
    (b) Jury Expenses
    With the parties’ knowledge, the court summoned 40 pro-
    spective jurors, rather than the usual 25, out of concern that
    potential juror conflicts might exist with American Family.
    These prospective jurors were called exclusively for this case
    and were waiting at the courthouse when the voluntary dis-
    missal was filed.
    During the hearing on costs, the court remarked, “It cost the
    taxpayers approximately $2,000 to have 40 jurors ready to go
    this morning, and that includes the . . . $35 fee for each juror
    and then approximately $15 in mileage for each juror . . . .”
    The court suggested an evidentiary hearing be held later in the
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    day to permit the clerk of the Douglas County District Court to
    testify and “get it down to the penny.” Millard Gutter declined
    an evidentiary hearing on the issue and stipulated that juror
    fees and mileage totaled $2,000, but argued such expenses
    were not properly taxable as costs.
    4. Order of Dismissal and
    Taxation of Costs
    The court announced its ruling from the bench. It held
    the prior summary judgments in favor of American Family
    would “remain in place” on the claims of bad faith, violations
    of the Unfair Insurance Trade Practices Act, and violations
    of the Unfair Insurance Claims Settlement Practices Act. It
    further held it would dismiss “the remaining breach of con-
    tract” claims without prejudice, pursuant to the voluntary
    dismissal. The court taxed costs to Millard Gutter, including
    $1,650 for technology expenses incurred by American Family
    and $2,000 “to be paid to the Douglas County District Court
    clerk’s office for the 40 jurors that were specifically assigned
    to this case.”
    Subsequently, the court entered a judgment of dismissal,
    styled as an order, consistent with its ruling from the bench.
    In addition to taxing technology costs and jury costs, the judg-
    ment taxed “all court costs” to Millard Gutter. The judgment
    also imposed certain procedural conditions in the event Millard
    Gutter refiled the action against American Family, but because
    neither party has assigned error to such conditions, we do not
    address them further.
    5. Millard Gutter’s Motion
    to A lter or A mend
    Millard Gutter filed a timely motion to alter or amend. It
    argued the district court had no authority to rule on any issue
    after the voluntary dismissal was filed. In the alternative,
    Millard Gutter argued that neither jury expenses nor technol-
    ogy expenses were properly taxable as costs. The district court
    overruled the motion to alter or amend in all respects. Millard
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    Gutter timely appealed, and we moved the appeal to our
    docket on our own motion.3
    II. ASSIGNMENTS OF ERROR
    Millard Gutter assigns, restated and consolidated, that the
    district court erred in (1) making any rulings after the volun-
    tary dismissal was filed, (2) determining technology expenses
    and jury expenses were taxable costs, and (3) overruling the
    motion to alter or amend.
    III. STANDARD OF REVIEW
    [1] The question of jurisdiction is a question of law, upon
    which an appellate court reaches a conclusion independent of
    the trial court.4
    [2,3] The decision of a trial court regarding taxing of costs
    is reviewed for an abuse of discretion.5 A judicial abuse of
    discretion exists when the reasons or rulings of a trial judge
    are clearly untenable, unfairly depriving a litigant of a sub-
    stantial right and denying just results in matters submitted
    for disposition.6
    [4] Statutory interpretation presents a question of law, for
    which an appellate court has an obligation to reach an inde-
    pendent conclusion irrespective of the decision made by the
    court below.7
    IV. ANALYSIS
    1. Voluntary Dismissal
    Millard Gutter argues that once the voluntary dismissal
    without prejudice was filed, it had the effect of withdrawing
    3
    See 
    Neb. Rev. Stat. § 24-1106
    (3) (Supp. 2017).
    4
    Klingelhoefer v. Monif, 
    286 Neb. 675
    , 
    839 N.W.2d 247
     (2013); Kansas
    Bankers Surety Co. v. Halford, 
    263 Neb. 971
    , 
    644 N.W.2d 865
     (2002).
    5
    O’Brien v. Cessna Aircraft Co., 
    298 Neb. 109
    , 
    903 N.W.2d 432
     (2017).
    6
    
    Id.
    7
    Amend v. Nebraska Pub. Serv. Comm., 
    298 Neb. 617
    , 
    905 N.W.2d 551
    (2018).
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    MILLARD GUTTER CO. v. AMERICAN FAMILY INS. CO.
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    the entire case from the court’s consideration. According to
    Millard Gutter, the voluntary dismissal “automatically ter-
    minated the jurisdiction” of the district court8 and the court
    thereafter lacked authority to make any further rulings regard-
    ing the case. We disagree.
    The ability of a plaintiff to voluntarily dismiss his or her
    claim without prejudice is codified in § 25-601 and 
    Neb. Rev. Stat. § 25-602
     (Reissue 2016).9 Section 25-601 provides
    that “[a]n action may be dismissed without prejudice to a
    future action (1) by the plaintiff, before the final submis-
    sion of the case to the jury, or to the court where the trial
    is by the court . . . .” A related statute, § 25-602, applies to
    cases pending before a district court or appellate court. At the
    time Millard Gutter filed its voluntary dismissal, § 25-602
    provided:
    The plaintiff, in any case pending in the district or
    Supreme Court of the state, shall, when no counterclaim
    or setoff has been filed by the opposite party, have the
    right in the vacation of any of said courts to dismiss his
    said action without prejudice, upon payment of costs,
    which dismissal shall be, by the clerk of any of said
    courts, entered upon the journal and take effect from and
    after the date thereof.
    We note that the Legislature recently amended § 25-602 pri-
    marily to update terminology,10 but those amendments do not
    affect our analysis in this case.
    [5,6] Generally speaking, under §§ 25-601 and 25-602,
    a plaintiff has the right to dismiss an action without preju-
    dice any time before final submission of the case, so long
    as no counterclaim or setoff has been filed by an opposing
    8
    Brief for appellant at 6.
    9
    See Holste v. Burlington Northern RR. Co., 
    256 Neb. 713
    , 
    592 N.W.2d 894
    (1999).
    10
    See 2018 Neb. Laws, L.B. 193, § 9.
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    party.11 We have stated that the statutory right to voluntary
    dismissal under §§ 25-601 and 25-602 is not a matter of
    judicial grace or discretion,12 but neither is it absolute or
    without limitation.13
    [7] Under certain circumstances,14 a district court has the
    authority to deny a voluntary dismissal pursuant to §§ 25-601
    and 25-602 and may attach conditions to the dismissal where
    justice and equitable principles so require.15 And we have repeat-
    edly stated that despite a plaintiff’s statutory right to voluntary
    dismissal, trial courts have discretion to protect the “‘“rights
    which have accrued to [a] defendant”’” in the action “‘“such
    as the preservation of a counterclaim, the restitution of property
    of which he has been deprived, the recovery of his costs, and
    the like.”’”16
    Here, we apply the plain language of §§ 25-601 and 25-602
    and conclude that at the time Millard Gutter filed its volun-
    tary dismissal, it had no such right under either statute. As
    11
    Kansas Bankers Surety Co., supra note 4. See, also, 
    Neb. Rev. Stat. § 25-603
     (Reissue 2016) (defendant in “any case” has right to proceed to
    trial on counterclaim or setoff “although the plaintiff may have dismissed
    the action or failed to appear”).
    12
    Holste, 
    supra note 9
    ; Schroeder v. Schroeder, 
    223 Neb. 684
    , 
    392 N.W.2d 787
     (1986); Dawson v. Papio Nat. Resources Dist., 
    210 Neb. 100
    , 
    313 N.W.2d 242
     (1981), modified on denial of rehearing 
    210 Neb. 612
    , 
    316 N.W.2d 311
     (1982).
    13
    See, Holste, 
    supra note 9
    ; Horton v. State, 
    63 Neb. 34
    , 
    88 N.W. 146
    (1901).
    14
    See Holste, 
    supra note 9
     (court can deny party’s voluntary dismissal
    where party is necessary party to another claim in same action). See, also,
    Vose v. Müller, 
    48 Neb. 602
    , 
    67 N.W. 598
     (1896) (explaining court can
    deny plaintiff’s voluntary dismissal in replevin action if plaintiff obtained
    possession of property through prejudgment order of delivery).
    15
    See, Holste, 
    supra note 9
    ; Schroeder, 
    supra note 12
    ; Dawson, 
    supra note 12
    ; Feight v. Mathers, 
    153 Neb. 839
    , 
    46 N.W.2d 492
     (1951); Blue River
    Power Co. v. Hronik, 
    116 Neb. 405
    , 
    217 N.W. 604
     (1928).
    16
    Kansas Bankers Surety Co., supra note 4, 
    263 Neb. at 978
    , 
    644 N.W.2d at 870
    , quoting Feight, 
    supra note 15
    . Accord Dawson, 
    supra note 12
    .
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    we explain below, there was a final submission that precluded
    voluntary dismissal under § 25-601, and a setoff had been filed
    that precluded voluntary dismissal under § 25-602.
    (a) Final Submission Under § 25-601
    Section 25-601 provides that a plaintiff may dismiss an
    action without prejudice any time before final submission to
    the jury or the court. Millard Gutter claims that its voluntary
    dismissal was filed before final submission for purposes of
    § 25-601, because the breach of contract claim had not yet
    been submitted to the jury. But Millard Gutter’s argument
    ignores the fact that at the time it filed its dismissal, summary
    judgment had been entered on three of its four claims.
    We have not squarely addressed whether a summary judg-
    ment motion can constitute a final submission for purposes of
    § 25-601. But our case law demonstrates that a final submis-
    sion can occur on a motion.
    In a bench trial, we have treated a motion for directed
    verdict at the close of the plaintiff’s case as a final submis-
    sion preventing voluntary dismissal under § 25-601.17 And in
    a jury trial, we have treated a defendant’s motion for directed
    verdict as a final submission under § 25-601 once the par-
    ties argued their positions on the motion.18 In doing so, we
    reasoned that a motion for directed verdict is a final sub-
    mission that limits the right of voluntary dismissal, because
    “the court is called upon to determine as a matter of law
    whether there are any issues arising from the facts submit-
    ted which present a jury question.”19 This same rationale
    applies to motions for summary judgment. We have also
    explained that if the court overrules the motion for directed
    verdict, there is no longer a final submission and the plaintiff
    17
    See Gydesen v. Gydesen, 
    188 Neb. 538
    , 
    198 N.W.2d 67
     (1972).
    18
    See, Collection Specialists v. Veseley, 
    238 Neb. 181
    , 
    469 N.W.2d 549
    (1991); Miller v. Harris, 
    195 Neb. 75
    , 
    236 N.W.2d 828
     (1975); Fronk v.
    Evans City Steam Laundry Co., 
    70 Neb. 75
    , 
    96 N.W. 1053
     (1903).
    19
    Miller, 
    supra note 18
    , 
    195 Neb. at 78
    , 
    236 N.W.2d at 830
    .
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    regains the right to dismiss the action if he or she chooses,
    because at that point, “fact issues remain to be determined
    by the jury, and those issues have not yet been submitted to
    the jury.”20
    To date, our only case addressing summary judgment and
    § 25-601 is Kansas Bankers Surety Co. v. Halford.21 In that
    case, the defendant filed a motion for summary judgment and
    submitted a brief to the court in support. On the day the plain-
    tiff’s brief was due, the plaintiff instead filed a dismissal with-
    out prejudice, which the court granted that same day. On those
    facts, we concluded the plaintiff retained the statutory right to
    voluntary dismissal without prejudice, because the defendant
    “had not filed a setoff or counterclaim” and “[t]here was no
    relief requested by [the plaintiff] that was pending at the time
    of [the] dismissal other than [the defendant’s] motion for sum-
    mary judgment . . . .”22
    Our statement regarding summary judgment could have
    been more precise, but we take this opportunity to clarify that
    we were not suggesting such a motion could not be a final
    submission under § 25-601. Rather, we were emphasizing that
    a final submission does not occur until argument is complete
    or has been waived; and where argument is allowed by brief,
    final submission will not occur until the briefing is complete
    or until the time for submitting briefs has expired.23 Because
    the voluntary dismissal in Kansas Bankers Surety Co. was
    filed before the time for briefing had expired, the summary
    judgment motion was not a final submission for purposes of
    § 25-601.
    [8] We now hold, as we have with motions for directed
    verdict, that a motion for summary judgment can be a final
    20
    Id.
    21
    Kansas Bankers Surety Co., supra note 4.
    22
    Id. at 979, 
    644 N.W.2d at 871
    .
    23
    See Plattsmouth Loan & Bldg. Ass’n v. Sedlak, 
    128 Neb. 509
    , 
    259 N.W. 367
     (1935).
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    submission that will prevent voluntary dismissal under
    § 25-601. In this case, the district court granted summary
    judgment on three of Millard Gutter’s four claims; thus, there
    was a final submission regarding some, but not all, of Millard
    Gutter’s claims. In this respect, we emphasize that a final sub-
    mission should not be confused with a final judgment.
    Here, the district court did not direct the entry of final
    judgment pursuant to § 25-1315(1), so its ruling on the sum-
    mary judgment motions was the product of a final submis-
    sion, but was not a final judgment for purposes of appeal.24
    Consequently, the district court was free to revise or vacate
    the summary judgments at any time prior to entry of judgment
    adjudicating all of the claims and rights of the parties.25
    Had the court here revised or set aside the summary judg-
    ments, it may have affected our final submission determina-
    tion under § 25-601. But the court’s judgment in this case did
    neither. To the contrary, the district court’s judgment not only
    incorporated by express reference its prior summary judgment
    rulings in favor of American Family, but also excepted those
    prior rulings from the dismissal without prejudice.
    Because the summary judgments in favor of American
    Family were the product of final submissions that were not
    revised or set aside before Millard Gutter’s voluntary dismissal
    was filed, Millard Gutter had no statutory right under § 25-601
    to voluntarily dismiss these claims without prejudice.26
    (b) Setoff Under § 25-602
    [9] Millard Gutter’s right to voluntary dismissal of its
    remaining breach of contract claims was affected by § 25-602.
    As previously stated, that statute gives plaintiffs in district
    court the right to dismiss their action without prejudice, upon
    24
    See, John P. Lenich, There’s No Escape: The Plaintiff ’s Right to Dismiss
    After the Submission of a Motion for Summary Judgment or a Motion to
    Dismiss in Nebraska, 1 Neb. L. Rev. Bull. 31 (2009).
    25
    See § 25-1315(1).
    26
    Accord Lenich, supra note 24.
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    payment of costs, when no counterclaim or setoff has been
    filed by the opposing party.
    In this case, the answer filed by American Family included
    allegations that it was entitled to a setoff for payments previ-
    ously made to the homeowners in the event it was determined
    that additional sums were owed under the insurance contracts.
    Consequently, to the extent Millard Gutter sought voluntary
    dismissal of its remaining breach of contract claims, it had
    no right to do so under § 25-602, because a setoff related to
    those claims was filed by American Family and American
    Family was ready to proceed to trial on the setoffs.27 Of
    course, in response to Millard Gutter’s filing, the court had
    discretion to grant a dismissal without prejudice,28 which it
    ultimately did as to the breach of contract claims but not as
    to the claims on which summary judgment had been granted
    as a matter of law.
    Given the procedural posture of this case at the time Millard
    Gutter filed its dismissal, it had no statutory right to voluntary
    dismissal under either § 25-601 or § 25-602. Consequently, the
    district court’s authority to make further rulings in the case was
    unaffected by the filing, and Millard Gutter’s first assignment
    of error is without merit.
    2. Taxable Costs
    The district court’s judgment taxed “all court costs” to
    Millard Gutter and, in addition, ordered it to pay $1,650
    for technology expenses incurred by American Family and
    $2,000 to “reimburse the tax payers of Douglas County” for
    the expenses associated with bringing in 40 jurors for trial.
    On appeal, Millard Gutter argues that neither the technology
    expenses nor the expenses of securing jurors are properly taxed
    as costs.
    [10,11] Since as early as 1922, this court has recognized that
    litigation expenses are not recoverable costs unless provided
    27
    See § 25-603.
    28
    See, e.g., Tuttle v. Wyman, 
    149 Neb. 769
    , 
    32 N.W.2d 742
     (1948).
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    for by statute or a uniform course of procedure.29 And while
    our cases have not always been consistent in their treatment of
    taxable costs, we recently recommitted to the basic principle
    that “it is within the province of the Legislature to designate
    specific items of litigation expense which may be taxed as
    costs.”30 To that end, we have expressly disapproved of our
    prior cases which permitted the recovery of litigation expenses
    without an explicit basis in statute or uniform procedure.31
    In an action for the recovery of money, taxable costs upon
    final judgment are governed by 
    Neb. Rev. Stat. §§ 25-1708
     and
    25-1710 (Reissue 2016). Section 25-1708 governs costs upon
    judgment in favor of a plaintiff, and § 25-1710 governs costs
    upon judgment in favor of a defendant. Both statutes allow for
    the recovery of “costs,” but neither specifies which costs are
    recoverable. Under such circumstances, we have held a party
    may recover “the costs of the filing of the action, and any
    other expenses that are specifically delineated as taxable costs
    by statute.”32
    Here, American Family obtained a judgment in its favor
    on three of the four claims asserted by Millard Gutter. To the
    extent the judgment here directed Millard Gutter to pay “all
    court costs,” Millard Gutter assigns no error. Our analysis is
    limited to whether a statute or uniform course of procedure
    authorized the district court to tax as costs the expenses associ-
    ated with courtroom technology or securing jurors. We find no
    such authorization.
    (a) Technology Expenses
    American Family hired a company to equip the court-
    room with electronics and display screens for use during the
    29
    See, McGill v. Lion Place Condo. Assn., 
    291 Neb. 70
    , 
    864 N.W.2d 642
    (2015), citing Toop v. Palmer, 
    108 Neb. 850
    , 
    189 N.W. 394
     (1922).
    30
    City of Falls City v. Nebraska Mun. Power Pool, 
    281 Neb. 230
    , 235, 
    795 N.W.2d 256
    , 260 (2011).
    31
    McGill, supra note 29.
    32
    Id. at 95, 864 N.W.2d at 661.
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    scheduled trial. The expense for this service was stipulated to
    be $1,650. There is no dispute that the charges were fair and
    reasonable, and no claim that the presentation of evidence
    would not have been enhanced by the use of such technology.
    The question presented is whether litigation expenses associ-
    ated with courtroom technology are properly taxable as costs.
    [12] In City of Falls City v. Nebraska Mun. Power Pool,33
    this court specifically held that the electronic presentation of
    evidence is not a taxable cost, noting that no Nebraska statute
    or uniform course of procedure authorizes it as such. We are
    aware that federal courts have allowed taxation of costs asso-
    ciated with the electronic display of trial exhibits as a form
    of “exemplification” under 
    28 U.S.C. § 1920
     (2012),34 but
    Nebraska has no corollary to this federal statute. Therefore, we
    must find the district court abused its discretion in taxing these
    technology expenses as costs.
    (b) Jury Expenses
    The parties stipulated that the cost of bringing in 40 pro-
    spective jurors for the trial in this case was $2,000. The
    district court found that “under the circumstances it is fair,
    just, and equitable to order [Millard Gutter] to pay such costs
    and reimburse the tax payers of Douglas County, Nebraska.”
    Accordingly, as part of the judgment, Millard Gutter was
    directed to pay $2,000 to the clerk of the Douglas County
    District Court.
    [13] Under Nebraska law, the “[p]ayment of jurors for
    service in the district and county courts shall be made by the
    county.”35 Each juror is statutorily entitled to receive $35 for
    each day “employed in the discharge of his or her duties,”
    plus mileage at the statutory rate “for each mile necessarily
    33
    City of Falls City, supra note 30.
    34
    See id. See, also, e.g., Marmo v. Tyson Fresh Meats, Inc., 
    457 F.3d 748
    (8th Cir. 2006).
    35
    
    Neb. Rev. Stat. § 33-138
    (3) (Reissue 2016).
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    traveled.”36 The statute also permits jurors to voluntarily waive
    such payment.37
    Millard Gutter argues that the expense of bringing in jurors
    is a governmental cost and not a cost properly taxable to the
    parties. Millard Gutter notes that in criminal cases, we have
    expressly held it is error to tax such costs38 and further argues
    there is no statute or uniform procedure that permits a court to
    tax jury expenses as costs in a civil case.
    American Family counters that juror compensation may
    properly be taxed as costs, and relies on our reasoning in
    Frazer v. Myers39 as support for this proposition. In Frazer, the
    jury returned a verdict for the plaintiff in a breach of contract
    case. The court’s judgment directed each party to pay their own
    costs, but, in addition, taxed to the defendant a $5 “jury fee”
    and a $1 “trial fee.”40 The defendant asked that these costs be
    “retaxed” against the plaintiff, and the trial court refused.41 On
    appeal, we found this was error, reasoning:
    Plaintiff voluntarily went into court and demanded a trial
    and judgment upon his cause of action. Defendant by the
    process of the court was compelled to appear. Plaintiff
    could not obtain his judgment without a trial. He could
    not have a trial without a jury, unless the intervention
    of a jury was waived, not only by himself, but by the
    defendant. No cases in point are cited, and we have
    36
    § 33-138(1).
    37
    § 33-138(4).
    38
    See, State ex rel. City of St. Paul v. Rutten, 
    177 Neb. 633
    , 
    130 N.W.2d 558
     (1964) (error to tax convicted defendant with payment of juror
    compensation, meals, and mileage); State v. Jungclaus, 
    176 Neb. 641
    , 
    126 N.W.2d 858
     (1964) (error to tax convicted defendant with paying for juror
    meals, lodging, and mileage because no statute authorized taxing such
    items as costs).
    39
    Frazer v. Myers, 
    95 Neb. 194
    , 
    145 N.W. 357
     (1914).
    40
    
    Id. at 197
    , 145 N.W. at 358.
    41
    Id.
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    neither the time nor inclination to look for them, but
    as a case of first impression it appears to us quite clear
    that these two items were costs made by plaintiff, and,
    under the judgment of the court, that each party should
    pay his own costs, they should have been taxed against
    the plaintiff.42
    The reasoning in Frazer is not compelling support for the
    proposition that jury expenses are properly taxable as costs.
    More importantly, Frazer is contrary to our recent reaffir-
    mation of the principle that “it is within the province of the
    Legislature to designate specific items of litigation expense
    which may be taxed as costs”43 and our express disapproval of
    prior cases that permitted recovery of litigation expenses with-
    out an explicit basis in statute or uniform procedure.44
    Douglas County filed an amicus curiae brief, directing our
    attention to 
    Neb. Rev. Stat. § 25-1711
     (Reissue 2016). That
    statute applies in equity actions, and permits an appellate court,
    in its discretion, to “tax as costs the actual fees and expenses
    necessitated by such jury [where a jury is demanded in the
    district court] if the court finds that the appeal was taken
    or the original filing was made for a frivolous or capricious
    reason.”45 Douglas County concedes this statute does not apply
    to the present case, but suggests the statute shows that the
    Legislature has, under certain circumstances, defined taxable
    costs to include jury expenses.
    Section 25-1711 illustrates that when the Legislature wants
    to make jury fees and expenses a taxable cost, it knows how
    to do so. To date, it has authorized only appellate courts to
    tax jury fees and expenses, and then only in very limited
    42
    
    Id.
    43
    City of Falls City, supra note 30, 281 Neb. at 235, 795 N.W.2d at 260.
    44
    See McGill, supra note 29.
    45
    See Langel Chevrolet-Cadillac v. Midwest Bridge, 
    213 Neb. 283
    , 
    329 N.W.2d 97
     (1983) (reiterating § 25-1711 applies to equitable actions—not
    those involving recovery of money).
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    circumstances. Because § 25-1711 does not apply—either fac-
    tually or procedurally—to this case, it provides no authority for
    taxing Millard Gutter with jury fees and mileage.
    Finally, we are urged by American Family and Douglas
    County to conclude that even if no other statute authorizes a
    district court to tax jury expenses as costs, it is permissible to
    assess jury costs against a party who brings or defends a civil
    action that alleges a claim or defense which a court determines
    is frivolous or made in bad faith under § 25-824. We express no
    opinion on whether jury costs can be assessed under § 25-824,
    because there was no finding of frivolousness in this case that
    would bring this action within the purview of that statute. We
    also express no opinion on whether there are any circumstances
    under which a district court, as a court of general jurisdiction
    having the inherent power to do all things necessary for the
    proper administration of justice and equity within the scope
    of its jurisdiction,46 might impose upon a party the expense
    incurred by a county to provide a jury panel in a civil case.
    Although on appeal American Family alludes to this inherent
    authority, the district court based its decision on its authority to
    tax costs and not upon its inherent power.
    Nebraska law mandates that jurors shall be paid “by the
    county”47 for their service in district court. The parties direct us
    to no other statute that authorizes a trial court to tax, as costs
    in a civil action, the sums paid to pay jurors for their service
    and mileage. We share the trial court’s frustration that Millard
    Gutter waited until 40 prospective jurors were present at the
    courthouse to dismiss its remaining claims, and we do not
    condone the needless waste of taxpayer resources that resulted
    from this tactic. But we are also mindful that shifting the
    expense of juror fees and mileage from the government to the
    parties under certain circumstances could have a chilling effect
    46
    See Holt County Co-op Assn. v. Corkle’s, Inc., 
    214 Neb. 762
    , 
    336 N.W.2d 312
     (1983).
    47
    § 33-138(3).
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    on exercising the constitutional right to a jury trial.48 Questions
    of whether, or under what circumstances, the governmental
    expense of juror fees and mileage should be taxed as costs in a
    civil action are matters of public policy in the province of the
    Legislature.49 In the absence of a statute or uniform course of
    procedure that authorized the district court to tax jury expenses
    as costs, we must find the district court abused its discretion in
    awarding these costs.
    3. Motion to A lter or
    A mend Judgment
    Millard Gutter assigns the trial court erred in denying its
    motion to alter or amend the order taxing costs. Given our
    resolution of this appeal, it is unnecessary to address this
    assignment.50
    V. CONCLUSION
    At the time Millard Gutter filed its dismissal, it had no
    statutory right to voluntary dismissal under either § 25-601
    or § 25-602. For that reason, the district court’s authority to
    make further rulings in the case was unaffected by that fil-
    ing. However, because there is no statute or uniform course
    of procedure authorizing the district court to tax as costs the
    expenses associated with courtroom technology or juror fees
    and mileage, we must find the district court abused its discre-
    tion in taxing such expenses as costs. We therefore reverse the
    judgment of the district court to the extent it taxed such costs,
    and in all other respects, we affirm.
    A ffirmed in part, and in part reversed.
    Wright and K elch, JJ., not participating.
    48
    See Neb. Const. art. I, § 6.
    49
    See City of Falls City, supra note 30.
    50
    In re Interest of Josue G., 
    299 Neb. 784
    , 
    910 N.W.2d 159
     (2018) (appellate
    court not obligated to engage in analysis unnecessary to adjudicate case
    and controversy before it).
    

Document Info

Docket Number: S-17-485

Citation Numbers: 300 Neb. 466

Filed Date: 7/13/2018

Precedential Status: Precedential

Modified Date: 9/24/2019

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