Be Wary of Rule 54(d)'s Costs Provision

Plaintiffs' employment lawyers contemplating bringing Title VII or other discrimination suits have long felt secure in the knowledge that, even if they lose at trial or at the summary judgment stage, their client will not be assessed attorney's fees. Any ambiguity regarding the meaning of a “prevailing party” entitled to fees under the Federal Rules was resolved by the Supreme Court's decision in Christiansburg Garment Co. v. EEOC, 434 U.S. 412 (1977). The Supreme Court denied fees to the prevailing defendant employer in that Title VII case, pointing out that the EEOC's actions in bringing the case could not be characterized as without merit or unreasonable. Specifically, the Court held that “a plaintiff may not be assessed his opponent's attorney's fees unless a court finds that his claim was frivolous, unreasonable or groundless.” Id. at 422. Indeed, had the Supreme Court ruled otherwise, many lower-income individuals with meritorious discrimination claims might have been dissuaded from pursuing them.