Federal Election Commission v. Political Contributions Data, Inc.

995 F.2d 383, 1993 U.S. App. LEXIS 14635, 1993 WL 210570
CourtCourt of Appeals for the Second Circuit
DecidedJune 17, 1993
Docket1369, Docket 92-6240
StatusPublished
Cited by30 cases

This text of 995 F.2d 383 (Federal Election Commission v. Political Contributions Data, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Election Commission v. Political Contributions Data, Inc., 995 F.2d 383, 1993 U.S. App. LEXIS 14635, 1993 WL 210570 (2d Cir. 1993).

Opinions

WHITMAN KNAPP, Senior District Judge:

Defendant-appellant Political Contributions Data, Inc. (“appellant”), which had previously obtained from a panel of this Court an order dismissing the complaint in this action, appeals an order of the United States District Court of the Southern District of New York denying its motion for attorney’s fees and other litigation costs under the Equal Access to Justice Act, 28 U.S.C, § 2412(d) (“the EAJA”) 1 The district court denied the application, finding it to be untimely and further finding the position of plaintiff-appellee Federal Election Commission (“the Commission”) in the underlying litigation to have been “substantially justified.” For reasons that follow, we reverse.

BACKGROUND AND FACTS

The underlying litigation began as an enforcement suit brought by the Commission to enjoin appellant, a private company, from selling reports analyzing contributions to federal election campaigns. The Commission alleged that the sale of such reports violated 2 U.S.C. § 438(a)(4), a provision of the Federal Election Campaign Act of 1971 (“the Act”) which directs the Commission to make available to the public lists identifying individuals who contribute more than $200 to federal election campaigns, but also provides that contributor information “may not be used by any person for the purpose of soliciting contributions or for commercial purposes.” The district court granted the Commission’s motion for summary judgment and an appeal was taken.

A panel of this Court2 reversed and remanded with instructions to enter summary judgment dismissing the Commission’s complaint, Federal Election Com’n. v. Political Contrib. Data, 943 F.2d 190 (2d Cir.1991). The panel ruled that an analysis of legislative history established that the Commission had adopted an unreasonably restrictive interpretation of the provision in question and of its own corresponding regulation, 11 C.F.R. § 104.15(c) (1991)3. It further ruled that [385]*385such interpretation, by prohibiting the distribution of appellant’s contributor lists, had defied the congressional intent behind the Act, namely to require disclosure of campaign contributions and contributors “in order to inform the electorate where campaign money comes from, to deter corruption, and to enforce the act’s contribution requirements,” 943 F.2d at 191, It observed that the government’s reading of its regulation “would very likely run afoul of the first amendment,” id. at 197. Proceeding “without the guidance of a reasonable agency interpretation,” id. at 197, it determined that the purpose of the commercial exception contained in § 438(a)(4) was to protect political contributors from unwanted entreaties from vendors of merchandise such as “cars, credit cards, magazine subscriptions and cheap vacations,” id. at 197. It further determined that the reports sold by appellant, which omitted the mailing addresses and phone numbers of the contributors and included a disclaimer against their use for soliciting contributions or any commercial purposes, “posed little, if any, risk” of unwanted harassment, id. at 197. It noted that the lists were “designed in a manner that will further first amendment values and not infringe contributor privacy by abetting solicitors,” id. at 196. It accordingly concluded that their sale did not run afoul of either § 438(a)(4) or the Commission’s pertinent regulation.

On October 5, 1991, appellant inquired of counsel for the Commission if it intended to seek certiorari, stating that if not it would file an application for fees pursuant to the EAJA. By letter dated October 30, counsel for the Commission responded that it had been decided that further review would not be sought. Subsequent attempts at settlement of the fee question were unavailing. On December 17, the Commission rejected an offer from the appellant; two days later, appellant filed its application for attorney’s fees. The district court rejected the application, finding that (1) it was untimely, and (2) that the Commission’s position in the underlying enforcement suit had been “substantially justified.” 807 F.Supp. 311 (1992).

Fee applications under the EAJA must be filed within 30 days of a “final judgment,” 28 U.S.C. § 2412(d)(1)(B), which is defined as a determination “that is final and not appeal-able.” Id. § 2412(d)(2)(g). Reasoning that the announcement that the Commission did not intend to seek review of the panel’s decision constituted a “final judgment,” the district court determined that in order to comply with the EAJA, appellant would have had to have filed its fee application within 30 days of the October 30th letter, that is, by November 29, several weeks before the application had actually been filed.

Alternatively, the district court found that the Commission’s position in the underlying litigation had been “substantially justified.” Noting that the Commission had “adopted its interpretation of the Regulation and its corresponding litigation position in the absence of any contrary, or even clear, guidance from either Congress or the courts,” it found that the agency was to be accorded substantial deference in its interpretation of § 438(a)(4). Despite the panel’s rejection of such interpretation, the district court concluded that it was still entitled to find that the Commission’s position had been “justified to a degree that could satisfy a reasonable person.”

DISCUSSION

A. Timeliness of the Application

In its recent opinion in Melkonyan v. Sullivan, — U.S.-, 111 S.Ct. 2157, 115 L.Ed.2d 78 (1991), the Supreme Court ruled that “a ‘final judgment’ for the purposes of 28 U.S.C. § 2412(d)(1)(B) means a judgment rendered by the court that terminates the civil action for which EAJA fees may be received. The 30-day EAJA clock begins to run after the time to appeal that ‘final judgment’ has expired.” — U.S. at-, 111 S.Ct. at 2162.

The contention that the Commission’s October 30th letter to counsel for appellant was a “final order” which rendered appellant’s fee application untimely was disposed of at oral argument. Commission counsel then unequivocally admitted that, despite counsel’s [386]*386letter, the Commission had retained the absolute right to change its mind and apply for certiorari at any time up until the deadline for such an application, namely on November 19, just thirty days before the petition for fees was filed. • Had counsel been similarly forthcoming with the district court, that court might not have erroneously concluded that his simple letter constituted a final order terminating the civil action.

B. The “Substantial Justification” of the Commission’s Position

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995 F.2d 383, 1993 U.S. App. LEXIS 14635, 1993 WL 210570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-election-commission-v-political-contributions-data-inc-ca2-1993.