District of Columbia v. Straus

705 F. Supp. 2d 14, 2010 U.S. Dist. LEXIS 35702, 2010 WL 1443974
CourtDistrict Court, District of Columbia
DecidedApril 12, 2010
DocketCivil Action 08-2075 (RWR)
StatusPublished
Cited by6 cases

This text of 705 F. Supp. 2d 14 (District of Columbia v. Straus) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
District of Columbia v. Straus, 705 F. Supp. 2d 14, 2010 U.S. Dist. LEXIS 35702, 2010 WL 1443974 (D.D.C. 2010).

Opinion

*15 MEMORANDUM OPINION

RICHARD W. ROBERTS, District Judge.

The District of Columbia (“DC”) unsuccessfully sued attorney John Straus and his law firm, James E. Brown & Associates, seeking attorneys’ fees under the Individuals with Disabilities Education Act (“IDEA”), 20 U.S.C. § 1415, claiming that the District of Columbia Public Schools (“DCPS”) was the prevailing party in an administrative proceeding that Straus had needlessly brought and continued. The defendants now seek attorneys’ fees under Federal Rule of Civil Procedure 54(d), arguing that DC acted in bad faith throughout the course of the litigation. Because the defendants have not established that DC’s efforts were undertaken in bad faith, their petition for fees will be denied.

BACKGROUND

In the underlying action, Straus represented a child with special educational needs who was enrolled in a DC public high school. A DCPS multidisciplinary team referred the child to DCPS for a psychiatric evaluation. Because DCPS failed to conduct the evaluation, Straus filed an administrative due process complaint on behalf of the child and his legal guardian. The complaint sought to have DCPS fund an independent evaluation. Three business days after Straus filed the complaint, DCPS authorized Straus to obtain an independent evaluation at DCPS’ expense. Thereafter, a hearing officer dismissed the complaint with prejudice on the ground that DCPS’ authorization mooted the issue. The hearing officer added his conclusions that Straus had filed the complaint without foundation and had groundlessly maintained the litigation after it became moot. DC then brought this action and moved for summary judgment, claiming that DCPS was the prevailing party in the administrative proceeding and it therefore was entitled to attorneys’ fees. However, judgment as a matter of law was entered in the defendants’ favor because DCPS was not a prevailing party. DC appealed the decision, the D.C. Circuit affirmed, and the defendants now move under Rule 54(d) for attorneys’ fees, arguing that DC brought and pursued this action in bad faith and therefore they are entitled to a fee award. DC opposes the motion, disputing that defendants have demonstrated any bad faith.

DISCUSSION

“In the United States, parties are ordinarily required to bear their own attorney’s fees — the prevailing party is not entitled to collect from the loser.” Buckhannon Bd. and Care Home, Inc. v. W. Va. Dep’t of Health and Human Resources (“Buckhannon ”), 532 U.S. 598, 602, 121 S.Ct. 1835, 149 L.Ed.2d 855 (2001); see also Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240, 247, 95 S.Ct. 1612, 44 L.Ed.2d 141 (1975). “Under this ‘American Rule,’ we follow ‘a general practice of not awarding fees to a prevailing party absent explicit statutory authority.’ ” Buckhannon, 532 U.S. at 602, 121 S.Ct. 1835 (quoting Key Tronic Corp. v. United States, 511 U.S. 809, 819, 114 S.Ct. 1960, 128 L.Ed.2d 797 (1994)). Numerous statutes, including the IDEA, provide for an award of attorneys’ fees for the prevailing party. That party may move under Rule 54(d) for a fees award by specifying “the statute, rule, or other grounds entitling the movant to the award.” Fed. R.Civ.P. 54(d)(2)(A), (B)(ii).

When there is no statutory authorization for such an award, a court may “consider whether the requested fee award [falls] within any of the exceptions to the general ‘American Rule[.]’ ” Alyeska Pipeline Serv. Co., 421 U.S. at 245, 95 S.Ct. 1612. In Alyeska, the Supreme Court set *16 forth these common law exceptions, which include circumstances “where a party has brought an action as a trustee of a fund or property or to preserve or recover a fund for the benefit of others in addition to himself’ or where the non-movant has acted in “bad faith.” In re Antioch Univ., 482 A.2d 133, 136 (D.C.1984) (internal quotation marks omitted). “Legal fees may ... be levied against a party who has willfully disobeyed a court order or when the losing party has acted in bad faith, vexatiously, wantonly, or for oppressive reasons.” Id. (internal quotation marks omitted); see also Hall v. Cole, 412 U.S. 1, 5, 93 S.Ct. 1943, 36 L.Ed.2d 702 (1973); Am. Hosp. Ass’n v. Sullivan, 938 F.2d 216, 219 (D.C.Cir.1991); Ellipso, Inc. v. Mann, 594 F.Supp.2d 40, 43 (D.D.C.2009). Notwithstanding these exceptions, “courts do not have ‘roving authority’ to allow counsel fees whenever deemed warranted.” In re Antioch Univ., 482 A.2d at 136 (quoting Alyeska Pipeline Serv. Co., 421 U.S. at 260, 95 S.Ct. 1612).

“Bad faith can support an award of attorneys’ fees in circumstances where the bad faith (1) occurred in connection with the litigation, or (2) was an aspect of the conduct giving rise to the lawsuit.” Am. Hosp. Ass’n, 938 F.2d at 219. Bad faith occurring in connection with the litigation can include “the filing of a frivolous complaint or meritless motion, ... or discovery-related misconduct.” Id. at 219-20 (internal citations omitted). “Bad faith in conduct giving rise to the lawsuit may be found where ‘a party, confronted with a clear statutory or judicially-imposed duty towards another, is so recalcitrant in performing that duty that the injured party is forced to undertake otherwise unnecessary litigation to vindicate plain legal rights.’ ” Id. at 220 (quoting Fitzgerald v. Hampton, 545 F.Supp. 53, 57 (D.D.C.1982)). Further, “the substantive standard for a finding of bad faith is ‘stringent’ and ‘attorneys’ fees will be awarded only when extraordinary circumstances or dominating reasons of fairness so demand.” Ass’n of Am. Physicians and Surgeons, Inc. v. Clinton, 187 F.3d 655, 660 (D.C.Cir.1999) (quoting Nepera Chem., Inc. v. Sear-Land Serv., Inc., 794 F.2d 688, 702 (D.C.Cir.1986)). “[T]he finding of bad faith must be supported by ‘clear and convincing evidence^]’ ” Id. (quoting Shepherd v. Am. Broad. Cos., Inc., 62 F.3d 1469, 1476-78 (D.C.Cir.1995)).

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Bluebook (online)
705 F. Supp. 2d 14, 2010 U.S. Dist. LEXIS 35702, 2010 WL 1443974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/district-of-columbia-v-straus-dcd-2010.