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In construing a federal statute that identifies the costs recoverable by a prevailing party, the Fifth Circuit Court of Appeals held that mediation fees may not be taxed against the losing party because mediators are not "court appointed experts" within the meaning of the statute.
In Cook Children's Medical Center v. The New England PPO Plan Of General Consolidated Management Inc., No. 06-10511, 2007 WL 1842117 (5th Cir. June 28, 2007), Cook Children's Medical Center (Cook) sued The New England PPO Plan (the Plan), seeking payment from the insurer for medical services. After a failed attempt to resolve the dispute through mediation, the district court granted summary judgment in favor of the Plan. In granting summary judgment, the district court awarded costs, including a $1,000 mediation fee, to the Plan.
On appeal, Cook argued that the mediation fee was not a taxable cost under 28 U.S.C. § 1920. The Court agreed. Specifically, the Court concluded that mediation expenses do not constitute "[c]ompensation of court appointed experts," which is one of the taxable costs under the statute. In reaching this conclusion and distinguishing mediators from guardians ad litem, the Court explained that "the role of mediators is to facilitate negotiations between the parties in an unbiased manner, not to liaise with the court."
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