Guardian Energy, LLC v. County of Waseca, 81-CV-10-365

Decision Date25 September 2019
Docket Number81-CV-10-365
PartiesGuardian Energy, LLC, Petitioner, v. County of Waseca, Respondent.
CourtTax Court of Minnesota

These consolidated matters came before The Honorable Joanne H Turner, Judge of the Minnesota Tax Court, on the motion of respondent Waseca County for an award of costs and disbursements.

Thomas R. Wilhelmy, Fredrikson & Byron, P.A., Minneapolis Minnesota, represents petitioner Guardian Energy, LLC.

Marc J Manderscheid, Briggs & Morgan, P.A., Minneapolis Minnesota, represents respondent Waseca County.

ORDER ON MOTION FOR COSTS AND DISBURSEMENTS

Joanne H. Turner, Judge.

On December 9, 2014, we filed amended findings of fact conclusions of law, and an order for judgment determining that the assessed value of Guardian Energy's ethanol plant in rural Waseca County understated its market value as of January 2, 2010 (file 81-CV-10-365), January 2, 2011 (file 81-CV-11-348), and January 2, 2012 (file 81-CV-11-741). On March 6, 2015, the County filed its motion for costs and disbursements, seeking an award of statutory costs, expert witness fees, and reproduction of exhibits totaling $21, 705.15. Although Guardian Energy appealed to the Minnesota Supreme Court, [1] and although we subsequently amended our findings of fact and conclusions of law on remand, the County remained the prevailing party within the meaning of Minn. Stat. § 278.07 (2018) ("If the tax is sustained in the full amount levied or increased, costs and disbursements may, in the discretion of the court, be taxed and allowed as in delinquent tax proceedings and shall be included in the judgment.").

Guardian Energy does not oppose an award of the County's statutory costs ($600.00) nor reimbursement for the time spent by the County's expert in testifying at trial ($4, 743.75).[2]Guardian Energy does oppose, however, the County's request for reimbursement for copies of trial transcripts ($9, 712.30) and for the cost of reproduction of exhibits ($7, 249.10).[3]

Transcript costs. The County seeks reimbursement for transcripts of a March 2012 Rule 16 pretrial conference; an April 2012 hearing on its motion to compel; and an October 2014 hearing on its motion for amended findings.[4] Guardian Energy objects to an award for these disbursements because they do not reflect "trial costs." [5]

Minnesota Statutes § 271.07 (2018) provides:

Except in the Small Claims Division, the Tax Court shall provide for a verbatim stenographic report of all proceedings had before it upon appeals, as required by the laws relating to proceedings in district court. The cost of the stenographic record shall be paid by the party taking the appeal. The cost is a taxable cost under [Minn. Stat. § 271.19].

(Emphasis added.) In other words, transcript costs of "all proceedings" before our court in regular division cases are specifically designated as "a taxable cost" in regular division cases. We grant the County's motion with respect to these three transcripts.

The County also seeks reimbursement for transcripts of the January 2013 evidentiary hearing and the February 2014 trial.[6] Guardian Energy objects to these disbursements on the ground that court has allowed reimbursement for court reporter appearance fees, but not for transcripts themselves.[7] To the contrary, we have allowed reimbursement for trial transcripts. See, e.g., American Multi-Cinema, Inc. v. Cty. of Hennepin, 2016 WL 5874439, at * 1, 6 (Minn. T.C. Sept. 30, 2016) (awarding the prevailing petitioner $3, 661.50 in "Court Reporter & Transcript Fees"). In Menard, Inc. v. County of Washington, we specifically granted the prevailing petitioner both court reporter appearance fees and transcript costs. File No. 82-CV-14-1681 et al., 2018 WL 893889, at *2 (Minn. T.C. Jan. 26, 2018). Although Minn. Stat. § 271.07 contemplates that the transcript will be paid by the petitioner, these parties apparently agreed to share the cost: the County seeks reimbursement for half of the cost of the original transcript.[8] We grant the County's motion in this respect.

As to the cost of the County's copy of the transcript, because we required the parties to prepare proposed findings of fact and conclusions of law with references to the record, we consider it reasonable and necessary for the County to have purchased a copy of the transcript. See Abraham v. Cty. of Hennepin, 622 N.W.2d 121, 129-30 (Minn.App. 2001) (finding no abuse of discretion in awarding the prevailing party's request for reimbursement of purchase of trial transcript from which to prepare findings of fact and conclusions of law), affd in part, rev 'd in part on other grounds, 639 N.W.2d 342 (Minn. 2002). We therefore grant the County's motion in the amount of $9, 712.30 for transcripts and court reporter appearance fees.

Exhibits. Finally, the County seeks an award of $7, 249.10 in copying costs.[9] Guardian Energy objects because "not all of the costs submitted by Waseca County relate to the trial proceedings in this matter, and some of the costs submitted exceed what is reasonably reimbursable in connection with trial proceedings." [10] In particular, Guardian Energy objects to reimbursing the County for $2, 479.71 of copies made in December 2011, more than a year before trial.[11] We agree, and deny this portion of the County's request. Guardian Energy further objects to paying $3, 369.38 for six copies of the County's appraisal report.[12] According to Guardian Energy, an award of the cost of three copies-one for use as a trjal exhibit, a working copy for the court, and a copy for Guardian-would be reasonable.[13] We agree, and grant the County's request in the amount of $1, 684.69 with respect to copies of the appraisal. Guardian has no apparently objection to the balance of the County's request for $1, 400.01 in copying costs in connection with the January 2013 and February 2014 trials, and we grant the County's motion in that respect as well.

We therefore grant the County's motion for costs and disbursements as follows:

Statutory costs

$ 600.00

Expert witness fees

$4, 743.75

Transcript costs and court reporter appearance fees

$9, 712.30

Exhibit copying costs

$3, 084.70

Total

$18, 140.75

Based upon all the files, records, and proceedings herein, the court now makes the following:

ORDER

The motion of respondent Waseca County...

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