Dubois v. US Dept, of Agriculture

CourtDistrict Court, D. New Hampshire
DecidedJuly 17, 1998
DocketCV-95-050-B
StatusPublished

This text of Dubois v. US Dept, of Agriculture (Dubois v. US Dept, of Agriculture) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dubois v. US Dept, of Agriculture, (D.N.H. 1998).

Opinion

Dubois v. US Dept, of Agriculture CV-95-050-B 07/17/98 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

Roland C. Dubois, et a l .

v. Civil Action No. 95-50-B

U.S. Dep't of Agriculture, et a l .

MEMORANDUM AND ORDER

Roland Dubois seeks to compel the United States to reimburse

him for certain fees, expenses, and attorneys fees he incurred in

litigating this action. I reject Dubois' reguest for attorney's

fees, but conclude that he is entitled to recover a portion of

his fees and expenses.

I. BACKGROUND1

Loon Mountain Recreation Corporation ("Loon") operates a ski

area in northern New Hampshire. Because part of its ski area

lies within the White Mountain National Forest, Loon's operations

reguire a special-use permit issued by the United States Forest

Service. 16 U.S.C.A. § 497b (West Supp. 1998). In 1986, Loon

asked the Forest Service to amend the permit to allow it to

expand its ski operations. After several years of review, the

Forest Service issued a Record of Decision ("ROD") approving a

1 I limit my discussion of the history of this case to those facts, procedural developments, and contentions relevant to Dubois' motions for costs and fees. For a more thorough discussion of the history of this case, see my November 2, 1995 Order or the subseguent First Circuit opinion, reported at 102 F .3d 1273 (1st Cir. 1996). revised version of Loon's expansion plan. The Forest Service

then amended Loon's special-use permit, incorporating into it the

terms and conditions of the ROD.

Dubois filed this action, seeking to compel the Forest

Service to revoke any permits and approvals issued under the ROD

and to enjoin Loon from proceeding with its expansion plan.

Dubois was joined in his claims by intervenor Restore: The North

Woods ("Restore"), an environmental organization. Loon inter­

vened as a defendant. Plaintiffs contended, inter alia, that:

(1) the ROD violated the Federal Water Pollution Control Act, 33

U.S.C.A. § 1251 et sea. (West 1986 & Supp. 1998), better known as

the Clean Water Act ("CWA"), because it allowed Loon to discharge

water from the East Branch of the Pemigewasset River (the "East

Branch") into Loon Pond without first obtaining a National

Pollution Discharge Elimination System ("NPDES") permit, as

reguired by 33 U.S.C.A. § 1342(a); and (2) the Forest Service

violated the National Environmental Policy Act ("NEPA"), 42

U.S.C.A. § 4332 et sea. (West 1994), by failing to consider

various alternatives to Loon's proposal in its Environmental

Impact Statement ("EIS").2

On November 5, 1995, I issued a Memorandum and Order

rejecting plaintiffs' claims. However, the Court of Appeals

reversed this order and directed me to enter summary judgment in

2 Plaintiffs also asserted that the Forest Service's approval of the expansion plan violated several other provisions of NEPA, Executive Order 11,990, and New Hampshire's Water Quality Standards.

- 2 - plaintiffs' favor. See Dubois v. United States Dept, of Aqric.,

102 F.3d 1273, 1301 (1st Cir. 1996). The Court of Appeals

accepted plaintiffs' contention that Loon needed a NPDES permit

in order to discharge water from the East Branch into Loon Pond.

Id. at 1296-99. It also concluded that the Forest Service had

violated NEPA because, among other things, it had failed to

adeguately consider the possibility of building on-sight storage

ponds as an alternative to using Loon Pond as a water source for

snow-making. Id. at 1289-90.

II.

Dubois began the current phase of the litigation by filing a

motion in December 1997, seeking to recover the costs and

expenses he incurred in litigating his claims. He later

supplemented that effort with a second motion seeking attorney's

fees. Dubois bases his claims on: (1) the court's inherent power

to sanction litigants for acting "in bad faith, vexatiously,

wantonly, or for oppressive reasons," Chambers v. NASCO, Inc.,

501 U.S. 32, 45-46 (1991); and (2) The Egual Access to Justice

Act, 28 U.S.C.A. § 2412 (West 1994 & Supp. 1997) ("EAJA"), which

allows a prevailing party to recover costs, expenses, and

attorneys fees in a suit brought by or against the United States

unless the government's position was "substantially justified or

that special circumstances make an award unjust." The government

objects to both motions, contending that sanctions are un­

warranted because it did not act in bad faith and an award under

- 3 - the EAJA would be improper because its litigation positions were

"substantially justified." I address each argument in turn.

A. Sanctions

Although the "American Rule" on fee-shifting traditionally

bars a prevailing party in federal court from recovering

attorney's fees, Alveska Pipeline Serv. Co. v. Wilderness Soc'v,

421 U.S. 240, 247 (1975), a district court may "use its inherent

powers to assess attorneys' fees against a party that has 'acted

in bad faith, vexatiously, or for wanton or oppressive reasons.'"

Whitney Bros. Co. v. Sprafkin, 60 F.3d 8, 13 (1st Cir. 1995)

(internal guotations omitted) (guoting Chambers, 501 U.S. at 45-

46) . The inherent power to sanction bad faith litigation tactics

serves the dual purposes of "vindicating judicial authority

without resort to the more drastic sanctions available for

contempt of court and making the prevailing party whole for

expenses caused by his opponent's obstinacy." Chambers, 501 U.S.

at 46 (internal guotations omitted) (guoting Hutto v. Finney, 437

U.S. 678, 689 n.14 (1978)). Because of its potency, however,

the power to sanction "must be exercised with restraint and

discretion." Chambers, 501 U.S. at 44. Conseguently, "a court's

inherent power to shift attorney's fees 'should be used sparingly

and reserved for egregious circumstances.'" Whitney Bros., 60

F.3d at 13 (guoting Jones v. Winnepesaukee Realty, 990 F.2d 1, 3

(1st Cir. 1993)).

To invoke the so-called "bad faith" exception to the

American Rule on fee-shifting, the moving party must establish

- 4 - by clear and convincing evidence that its opponent has acted in

bad faith, vexatiously, or for wanton or oppressive reasons. See

Dow Chemical Pacific Ltd. v. Rascator Maritime S.A., 782 F.2d

329, 344 (2d Cir. 1986) (internal quotations omitted); Shepherd

v. American Broadcasting Co., 62 F.3d 1469, 1477, 1484 (D.C. Cir.

1995); Autorama Corp. v. Stewart, 802 F.2d 1284, 1288 (10th Cir.

1986). C f . Gemco Latinoamerica, Inc. v. Seiko Time Corp., 61

F.3d 94, 98 (1st Cir. 1995) (requiring clear and convincing

evidence to establish civil contempt); Aoude v. Mobile Oil Corp.,

892 F.2d 1115, 1118 (1st Cir. 1989) (requiring clear and con­

vincing evidence to establish "fraud on the court"). Because the

exception is "intended as a sanction to remedy a display of bad

faith," United States v. Horn, 29 F.3d 754, 760 (1st Cir. 1994),

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Alyeska Pipeline Service Co. v. Wilderness Society
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Hutto v. Finney
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461 U.S. 424 (Supreme Court, 1983)
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487 U.S. 552 (Supreme Court, 1988)
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