Dalles Irrigation District v. United States

91 Fed. Cl. 689, 2010 U.S. Claims LEXIS 45, 2010 WL 785395
CourtUnited States Court of Federal Claims
DecidedMarch 2, 2010
DocketNo. 05-1042C
StatusPublished
Cited by38 cases

This text of 91 Fed. Cl. 689 (Dalles Irrigation District v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dalles Irrigation District v. United States, 91 Fed. Cl. 689, 2010 U.S. Claims LEXIS 45, 2010 WL 785395 (uscfc 2010).

Opinion

OPINION AND ORDER

LETTOW, Judge.

A post-trial judgment was issued in plaintiffs favor in this contract ease involving rates for supply of reserved power from hydroelectric units at The Dalles Dam on the Columbia River to an irrigation district in Oregon. See Dalles Irrigation Dist. v. United States, 88 Fed.Cl. 601 (2009) (“Dalles III ”). As allowed by that judgment, plaintiff (“the District”) has filed a Bill of Costs; in addition, it has moved for an award of attorneys’ fees and expenses pursuant to the Equal Access to Justice Act (“EAJA”), 28 U.S.C. § 2412(d). Overall, the District seeks $933,909.06 in attorneys’ fees and expenses and $20,536.95 in costs. The government resists any award of attorneys’ fees and expenses, maintaining that its position in the underlying litigation was substantially justified and the requisite criteria for an award pursuant to EAJA have not been satisfied. The government also questions elements of the District’s costs.

BACKGROUND

This case was initiated on August 18, 2004, when the District filed a complaint in the United States District Court for the District of Oregon alleging breach of a contract under which the United States Department of the Interior, Bureau of Reclamation (“the Bureau”), was obligated to supply the District with hydroelectric power for irrigation pumping. In light of the Supreme Court’s ruling in Orff v. United States, 545 U.S. 596, 125 S.Ct. 2606, 162 L.Ed.2d 544 (2005),1 the case [696]*696was subsequently transferred to this court and was docketed here on September 28, 2005. See Dalles Irrigation Dist. v. United States, 71 Fed.Cl. 344, 345, 349 (2006) (“Dalles I”). The District claimed that the government contravened the contract by overcharging for energy and sought monetary damages. After a motion by the government to dismiss the District’s transfer complaint on statute-of-limitations grounds was rejected, see id. at 351-53, the parties stipulated to bifurcation of the proceedings into liability and damages phases.

After a trial on liability, the court found that the Bureau had breached its contract with the District to the extent that it had wrongfully included a “lost revenue component” in the rates charged to the District for irrigation pumping power. See Dalles Irrigation Dist. v. United States, 82 Fed.Cl. 346, 366-67 (2008) (“Dalles II”). Thereafter, a trial was held to determine what damages, if any, the District was entitled to be awarded as a result of the inclusion of the lost revenue component. See Dalles III, 88 Fed.Cl. at 604. Based upon evidence adduced in the trial of damages, the court awarded the District damages in the amount of $172,954. Id. at 614. The court also awarded the District its costs of suit. Id.

Once the award of damages had become final, the District filed its motion for attorneys’ fees and expenses and Bill of Costs on October 21, 2009. Supplemental submissions were received from the District on December 7, 2009 and January 13, 2010. The disputed matters have been fully briefed and are now ready for disposition.

ANALYSIS

I. FEES AND EXPENSES UNDER THE EQUAL ACCESS TO JUSTICE ACT

A. EAJA Requirements

EAJA provides a mechanism by which a qualifying party may receive an award of reasonable attorneys’ fees. 28 U.S.C. § 2412(d)(1)(A), (B). To be eligible for such an award, five criteria must be satisfied: (1) the applicant must have been a “prevailing party” in a suit against the United States; (2) the government’s position must not have been “substantially justified;” (3) there cannot be any “special circumstances [that] make an award unjust;” (4) any fee application must be submitted to the court within thirty days of final judgment in the action and must also be supported by an itemized statement; and (5) a qualifying party must, if a corporation or other organization, have not had more than $7,000,000 in net worth and 500 employees at the time the adversarial adjudication was initiated. 28 U.S.C. § 2412(d)(1), (2); see Commissioner, Immigration & Naturalization Serv. v. Jean, 496 U.S. 154, 158, 110 S.Ct. 2316, 110 L.Ed.2d 134 (1990); ACE Constructors, Inc. v. United States, 81 Fed.Cl. 161, 164 (2008); Geo-Seis Helicopters, Inc. v. United States, 79 Fed.Cl. 74, 76-77 (2007). The District bears the burden of establishing that it meets these requirements, except that the government has the burden to show that its position was substantially justified. See White v. Nicholson, 412 F.3d 1314, 1315 (Fed.Cir.2005); Hillensbeck v. United States, 74 Fed.Cl. 477, 479-80 (2006); Al Ghanim Combined Group Co. v. United States, 67 Fed.Cl. 494, 498 (2005).

The District filed its motion for attorneys’ fees and expenses and Bill of Costs within thirty days after the judgment entered August 21, 2009 became final and not appeal-able. See 28 U.S.C. § 2412(d)(2)(G). The government does not contest that the District’s EAJA application and Bill of Costs were timely filed. The government also does not contest that the District, having shown that the government’s inclusion of a lost revenue component contravened the parties’ contract, is a “prevailing party” within the meaning of the statute. Cf. Owen v. United States, 861 F.2d 1273, 1274 (Fed.Cir.1988) (“[A] prevailing party under the EAJA is one succeeding on any significant issue which [697]*697achieves some of the benefits sought by the suit.” (citation omitted)). The government does dispute, however, whether the remaining criteria have been satisfied, arguing that the court should deny the District’s EAJA application because (i) the government’s position was “substantially justified,” (ii) the District failed to provide an “itemized statement” of fees sought, (iii) the District has not established that it is a “qualifying party” within the meaning of the statute, and (iv) “special circumstances” exist which would make an EAJA award unjust. See Def.’s Resp. to Pl.’s App. for Fees and Expenses Pursuant to the Equal Access to Justice Act at 2, 10, 13, 17 (“Def.’s Opp’n to Pl.’s EAJA App.”).

1. “Substantially justified.

The burden of proving that its litigation position was “substantially justified” rests on the government. See White, 412 F.3d at 1315; Hillensbeck, 74 Fed.Cl. at 479-80; Lion Raisins, Inc. v. United States, 57 Fed.Cl. 505, 512 (2003). An award pursuant to Section 2412(d) is precluded if the government shows its position to be “ ‘justified in substance or in the main’ that is, justified to a degree that could satisfy the reasonable person.” Pierce v. Underwood, 487 U.S. 552, 565, 108 S.Ct. 2541, 101 L.Ed.2d 490 (1988).

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Cite This Page — Counsel Stack

Bluebook (online)
91 Fed. Cl. 689, 2010 U.S. Claims LEXIS 45, 2010 WL 785395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dalles-irrigation-district-v-united-states-uscfc-2010.