Garza v. Citigroup – The Third Circuit Clarifies When a Defendant May Be Awarded Attorneys’ Fees as Costs Under Rule 41(D)

Federal Rule of Civil Procedure 41(d) authorizes a district court to award a defendant “costs” where a plaintiff who “previously dismissed an action in any court [subsequently] files an action based on or including the same claim against the same defendant.”

On February 2, 2018, the Third Circuit held as a matter of first impression that a district court may award attorneys’ fees as the “costs” provided for under Rule 41(d) when the substantive statute under which the lawsuit was filed defines costs to include attorneys’ fees.

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