The U.S. Third Circuit Court of Appeals narrowly construes the scope of recoverable costs from electronic discovery to tasks, such as transferring and scanning data, that are analogous to making copies in the car racing industry (Race Tires Am./Hoosier Racing Tire Corp.)

A recent opinion vacating most of the electronic discovery costs affirmed in Race Tires II provides clarity in the Third Circuit as to the limited scope of electronic discovery costs recoverable by a prevailing civil party. The rapidly evolving area of the law regarding whether a prevailing party can recoup electronic discovery costs recently reversed course in the Third Circuit. In Race Tires America, Inc. v. Hoosier Racing Tire Corp. (Race Tires III), [1] the U.S. Court of Appeals for the Third Circuit sought to provide “definitive guidance” on “the extent to which electronic discovery expenses are taxable” and vacated the majority of a $365,000 award of electronic discovery– related costs. The court of appeals found that less than 10% of the costs the district court awarded for

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Stephanie A. "Tess" Blair, Scott A. Milner, Jacquelyn A. Caridad, The U.S. Third Circuit Court of Appeals narrowly construes the scope of recoverable costs from electronic discovery to tasks, such as transferring and scanning data, that are analogous to making copies in the car racing industry (Race Tires Am./Hoosier Racing Tire Corp.), 16 March 2012, e-Competitions Bulletin Automobile, Art. N° 62469

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