Bankruptcy Rule 7054 authorizes the Court to allow costs to the prevailing party in an adversary proceeding. Local Rule 7054-1 authorizes the Clerk to tax costs only when the judgment specifically awards costs to the party seeking costs. If the judgment in an adversary proceeding does not specifically award costs, the Clerk is not authorized to allow costs.
Filing the Bill of Costs
Within 14 days of the filing of the judgment in an adversary, the party seeking costs, as provided for in the judgment, shall file form B-263, Bill of Costs, electronically using the CM/ECF event “Adversary/Miscellaneous/Bill of Costs” and shall include any supporting documentation for requested costs. The Bill of Costs should include only those expenses that are awarded in the judgment. When filing this form, the judgment should be related to in the event.
The filing party is required to serve a file stamped copy of the Bill of Costs on the judgment debtor if the CM/ECF System does not serve the judgment debtor. Such service should be accomplished within one day of the filing and a certificate of service shall be filed electronically.
The judgment debtor will have 14 days from the filing of the Bill of Costs to object to any amount requested. An objection, including specific items and costs, should be filed using the CM/ECF event “Adversary/Answers/Motion-Application/Objection”.
If no objection is filed within 14 days, the Clerk will review the Bill of Costs and appropriate costs will be taxed by order of the Clerk.
If an objection is filed, the party that filed the Bill of Costs may file an amended Bill of Costs within 7 days of the objection, using the process described above.
If an amended Bill of Costs is not filed within 7 days, the Clerk will schedule an administrative hearing with all parties to review the Bill of Costs. Parties should come prepared to defend their position.
When a decision has been reached, the Clerk will enter an order.
Review of Clerk’s Action
Within 7 days of the entry of the Clerk’s order, either party may file a Motion for Review of Decision of the Clerk. The Judge will review and rule on the motion.