Animal Legal Defense Fund v. Special Memories Zoo LLC

CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 1, 2022
Docket21-3057
StatusPublished

This text of Animal Legal Defense Fund v. Special Memories Zoo LLC (Animal Legal Defense Fund v. Special Memories Zoo LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Animal Legal Defense Fund v. Special Memories Zoo LLC, (7th Cir. 2022).

Opinion

In the

United States Court of Appeals For the Seventh Circuit ____________________ No. 21-3057 ANIMAL LEGAL DEFENSE FUND, Plaintiff-Appellant, v.

SPECIAL MEMORIES ZOO, ET AL., Defendants-Appellees. ____________________

Appeal from the United States District Court for the Eastern District of Wisconsin. No. 20-C-216 — William C. Griesbach, Judge. ____________________

ARGUED JUNE 7, 2022 — DECIDED AUGUST 1, 2022 ____________________

Before HAMILTON, KIRSCH, and JACKSON-AKIWUMI, Circuit Judges. JACKSON-AKIWUMI, Circuit Judge. The sole issue in this ap- peal is whether the district court erroneously denied fees and costs to the Animal Legal Defense Fund after it obtained a de- fault judgment on its claim under the Endangered Species Act. ALDF sued Special Memories Zoo and its owners and manager under the Act’s citizen-suit provision, see 16 U.S.C. § 1540(g)(1), for mistreatment of endangered and threatened 2 No. 21-3057

animals at the private zoo in Greenville, Wisconsin. After about nine months defending the action, the defendants in- tentionally defaulted. The district court entered judgment for ALDF and permanently enjoined the defendants from pos- sessing or exhibiting animals. The court, however, declined to award fees and costs to ALDF. Because the district court’s stated reasons were insufficient to deny statutorily recovera- ble expenses, we remand for an award of reasonable fees and costs.

BACKGROUND ALDF is a nonprofit organization that advocates for the protection of animals. According to its complaint, at least one member of ALDF visited Special Memories Zoo and reported concerns about the zoo’s treatment of animals. The ALDF member (plus other visitors and a former zoo employee) re- ported, for instance, that endangered and threatened animals such as lemurs, tigers, and lions were kept in squalid and cramped cages, had obvious injuries, lacked clean water, and showed signs of distress. At least one ALDF member also re- ported concerns about non-endangered or non-threatened an- imals, asserting that their water was rancid, their food was infested with rodents and bugs, and their enclosures were flimsy and incapable of protecting them from inclement weather or escape. ALDF sued the zoo, its owners, Dona and Gene Wheeler, and its manager, Gretchen Crowe. (Gene Wheeler died dur- ing the proceedings and was dismissed from the suit.) ALDF alleged that the conditions of the endangered and threatened species’ confinement harassed and harmed the animals, con- stituting an unlawful “take” under the Act. See 16 U.S.C. No. 21-3057 3

§ 1538(a)(1)(B) (prohibited acts); § 1532(19) (defining “take”). ALDF further asserted that the conditions for the non-pro- tected animals created a public nuisance under Wisconsin law. See WISC. STAT. § 823.01. The defendants filed an answer denying the allegations. Simultaneously, their lawyer submitted a letter informing the court that they were in the process of closing the zoo and re- homing the animals: Last week, [Gene Wheeler] was diagnosed with leukemia.… Due to his health complications and this lawsuit, and the recognition that the ALDF will only continue to pursue claims against the Zoo even if my clients prevail in this action, my clients have made the difficult deci- sion to rehome its animals, in particular, the en- dangered and threatened animals. A couple of months later, the defendants moved to dis- miss the case. The case was moot, they argued, because they had transferred their animals to third parties and were in the process of closing the zoo. The district court denied the mo- tion. The case was not moot, it explained, because the defend- ants submitted no evidence that the animals had been irrevo- cably transferred or that their ownership interests had termi- nated. The court directed the parties to engage in limited dis- covery on this issue. Rather than engage in discovery, the defendants asked the court to enter default judgment against them under Federal Rule of Civil Procedure 55(b)(2). They had asked ALDF to dis- miss the case voluntarily because the zoo had closed, but ALDF refused unless the defendants revealed where they sent 4 No. 21-3057

the animals. The defendants shared the locations of the en- dangered and threatened animals but not the non-protected animals. They then announced that they “no longer in- tend[ed] to provide any discovery or continue to defend themselves in this litigation” because the cost of litigation was high, the zoo was permanently closed, and the animals had been rehomed. ALDF responded and filed its own motion for default judgment, seeking declaratory and injunctive relief. The court entered default judgment for ALDF. It found that “the defendants did violate the [Act] and that the opera- tion of the zoo constituted a nuisance.” Based on that deter- mination of liability, the court entered a permanent injunction barring the defendants from possessing or exhibiting animals other than their pet dogs. The court declined ALDF’s request for declaratory relief as superfluous, and it denied ALDF’s re- quest for an injunction prohibiting the defendants from sell- ing the zoo’s other property, such as its cages. ALDF then moved for attorney’s fees and costs under 16 U.S.C. § 1540(g)(4), which permits the prevailing party’s recovery of these expenses when “appropriate.” The court de- nied the motion, explaining that an award was unwarranted for four reasons: (1) The court had granted ALDF some relief “despite serious questions that remained concerning ALDF’s Article III standing and whether the case had become moot” so that it could “dispose of the case without requiring the ex- penditure of additional time and resources to resolve thresh- old issues … that Defendants ultimately had no interest or de- sire to contest”; (2) ALDF did not contribute substantially to the outcome of the case; rather, the zoo closed because of Mr. Wheeler’s illness; (3) The litigation arguably did not ad- vance the goals of the Act, which does not exist to close No. 21-3057 5

private zoos; and (4) ALDF is “not dependent upon fee awards.” The court did not address costs ($2,459.56) as dis- tinct from the attorney’s fees ($69,713).

ANALYSIS On appeal, ALDF challenges the district court’s decision to deny fees and costs under the Endangered Species Act’s fee-shifting provision. The provision states, in relevant part, that when a court grants relief in a citizen suit, it “may award costs of litigation (including reasonable attorney and expert witness fees) to any party, whenever the court determines such award is appropriate.” 16 U.S.C. § 1540(g)(4). To award fees and costs under a “when-appropriate” provision like this one, a district court must make two findings. First, it must find that the fee applicant achieved “some success” in the lit- igation. Ruckelshaus v. Sierra Club, 463 U.S. 680, 682 n.1, 691– 93 (1983) (explaining that “when-appropriate” fee arrange- ments, including the Act’s, require that “some success on the merits be obtained before a party becomes eligible for a fee award”). Second, the court must find that an award is “appro- priate.” § 1540(g)(4). 1 There is no dispute on appeal that ALDF won “some suc- cess” in this litigation, making it eligible for fees under the “when-appropriate” fee arrangement. ALDF obtained a judg- ment on its federal and state claims and a permanent

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Animal Legal Defense Fund v. Special Memories Zoo LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/animal-legal-defense-fund-v-special-memories-zoo-llc-ca7-2022.