Cornella v. Schweiker

553 F. Supp. 240, 1982 U.S. Dist. LEXIS 16313
District Court, D. South Dakota·Decided December 15, 1982·No. CIV79-5041·Published·Cited by 18 cases

Opinion

MEMORANDUM OPINION

BOGUE, Chief Judge.

I.

This matter is before the Court on application by Wallis D. Cornelia (Plaintiff), by and through his legal representative, Black Hills Legal Services, Inc., for an allowance of attorney fees and other expenses pursuant to the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412 and 5 U.S.C. § 504. 1 Plaintiff asserts, inter alia, that he was the prevailing party in the instant case and that the position of the United States was not substantially justified. 2

Plaintiff originally brought the above-entitled action pursuant to § 205(g) of the Social Security Act, 42 U.S.C. § 405(g), seeking judicial review of the final decision of the Secretary of Health and Human Services (Secretary) denying Social Security disability benefits for the period August 13, 1977 to February 19, 1979. By Memorandum Opinion and Order, this Court held on *242 August 13, 1982, that the Secretary’s final decision was not supported by substantial evidence and that Plaintiff was entitled to disability benefits as a matter of law.

The Secretary opposes Plaintiff’s application for attorney fees and other expenses on the following grounds:

1. The EAJA does not apply to claims filed pursuant to Title II of the Social Security Act.
2. The EAJA does not provide for an award of fees for services performed prior to its effective date, October 1, 1981.
3. The EAJA does not provide for an award of fees for services performed at the administrative level.
4. The EAJA precludes an award of fees because the Secretary’s position was substantially justified.
5. The EAJA precludes an award of fees because there are special circumstances which make an award unjust.
6. The application for fees and other expenses is unreasonable and excessive.

Inasmuch as this Court holds that the Secretary’s position 3 in this case was substantially justified within the meaning of the EAJA, the Court need not address any further issues raised by the parties. Smith v. Schweiker, No. 80-C-0258, Slip Op. at 2 (E.D.N.Y. Sept. 8, 1982).

II.

A.

The EAJA, adopted October 21,1980, and effective October 1, 1981, 4 enacted as Title II, §§ 201-208, of the Small Business Export Expansion Act, Pub.L. 96-481, 94 Stat. 2325 (1980) and codified at 5 U.S.C. § 504, 28 U.S.C. § 2412 (Supp.1982), 5 allows attorney fee awards to certain parties prevailing in actions by or against the federal government. Knights of the K.K.K., 679 F.2d at 65. This fee-shifting act represents yet another exception to the general “American Rule” that litigants pay their own attorney fees. Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 247, 95 S.Ct. 1612, 1616, 44 L.Ed.2d 141 (1975); Photo Data, Inc., 533 F.Supp. at 350. The EAJA illustrates the express congressional provision necessary for an allowance of attorney fees against the United States. Id. 421 U.S. at 265-68, 95 S.Ct. at 1626-27; National Ass’n for Advancement of Colored People v. Civiletti, 197 U.S.App.D.C. 259, 609 F.2d 514, 516 (1979), cert. denied, 447 U.S. 922, 100 S.Ct. 3012, 65 L.Ed.2d 1114 (1982).

*243 In the instant case the relevant statutory provision is 28 U.S.C. § 2412(d)(1)(A). That subsection provides in pertinent part:

[A] court shall award to a prevailing party other than the United States fees and other expenses[ 6 ] ... incurred by that party in any civil action (other than cases sounding in tort) brought by or against the United States in any court having jurisdiction of that action, unless the court finds that the position of the United States was substantially justified or that special circumstances make an award unjust. 28 U.S.C. § 2412(d)(1)(A). (Emphasis added.)

There can be no serious question but that Plaintiff was the prevailing party in this action. The issue becomes whether the position of the United States was substantially justified. This Court holds that it was and Plaintiff’s application is therefore denied.

B.

Although the EAJA is of recent vintage, a number of courts have had occasion to define and apply the “substantial justification” standard. 7 The standard falls between the common law “bad faith” exception and an automatic award of attorney’s fees to prevailing parties; it represents a “middle ground” between such automatic award of fees to a prevailing party and an award only where the government’s position was arbitrary or frivolous. H.R. Rep. No. 96-1418, 96th Cong., 2d Sess. 19, reprinted in [1980] U.S.Code Cong. & Ad. News 4953, 4993 (House Report); Berman, 531 F.Supp. at 1154. Legislative history provides helpful instruction in identifying the parameters of the standard:

The test of whether or not a Government action is substantially justified is essentially one of reasonableness. Where the Government can show that its cause had a reasonable basis both in law and fact, no award will be made. In this regard, the strong deterrents to contesting Government action require that the burden of proof rest with the Government. ...

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Cornella v. Schweiker, 553 F. Supp. 240, 1982 U.S. Dist. LEXIS 16313 (D.S.D. 1982).

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