In re Madison Guaranty Savings & Loan

344 F.3d 1250, 2003 WL 22231590
Procedural entryThis page is a short order in In re Madison Guaranty Savings & Loan. Read the opinion of the Court — 427 F.3d 981
Court of Appeals for the D.C. Circuit·Decided September 30, 2003·No. Division No. 94-1·Published

Opinions

Opinion of the Special Court filed PER CURIAM.

Separate opinion specially concurring in the judgment filed by Senior Circuit Judge REAVLEY.

ORDER

PER CURIAM:

This matter coming to be heard and being heard before the Special Division of the Court upon the application of Vernon A. Jordan, Jr. for reimbursement of attorneys’ fees and costs pursuant to section 593(f) of the Ethics in Government Act of 1978, as amended, 28 U.S.C. § 591 et seq. (2000), and it appearing to the court for the reasons set forth more fully in the opinion filed contemporaneously herewith, that the petition is not well taken, it is hereby

ORDERED, ADJUDGED, and DECREED that the petition of Vernon A. Jordan, Jr. for attorneys’ fees that he incurred during the Independent Counsel’s investigation be denied, save for a single unique item.

ON APPLICATION FOR ATTORNEYS’ FEES

Vernon A. Jordan, Jr., petitions this Court under section 593(f) of the Ethics in Government Act of 1978, as amended, 28 U.S.C. §§ 591-599 (2000) (the Act), for reimbursement of attorneys’ fees in the amount of $302,719.82, inclusive of $16,111.30 in expenses allegedly incurred by him in connection with the investigation conducted by the Independent Counsel of Jordan’s alleged involvement in perjury and subornation of perjury. Because we conclude that Jordan has not carried his burden of showing that the fees would not have been incurred but for the requirements of the Act, we deny the petition, save for a single unique item.

I. BACKGROUND

In August 1994, upon the petition of then-Attorney General Janet Reno, this Court appointed an Independent Counsel to continue the investigation of the Madison Guaranty Savings and Loan Association theretofore conducted by Reno appointee regulatory Independent Counsel Robert B. Fisk, Jr. On January 16, 1998, again upon the application of Attorney [1252]*1252General Reno, this Court ordered the Independent Counsel’s jurisdiction expanded to include an investigation as to whether Monica Lewinsky or others had suborned perjury, obstructed justice, intimidated witnesses or otherwise violated federal laws in dealing with witnesses or potential witnesses in connection with the civil law suit filed by Paula Jones against William Jefferson Clinton. In the early stages of that investigation, Lewinsky declined to cooperate with the Office of Independent Counsel (OIC) although she subsequently provided substantial evidence of the involvement of then President Clinton in the alleged violations of law. Because the allegations of perjury and obstruction proceeded from evidence that Clinton had presented false testimony under oath concerning his relationship with Lewinsky, and because the OIC had evidence that Clinton may have attempted to influence Lewinsky and others to perjure themselves in support of his own perjury, the OIC conducted extensive investigation into the relationship between the President and Lewinsky prior to obtaining her cooperation.

In the course of that investigation, the OIC obtained evidence that Jordan, a prominent attorney in Washington, DC, and friend of President Clinton, who was well connected with many private corporations, assisted Lewinsky in her efforts to find a job outside the Clinton administration. Jordan also arranged for Lewinsky to be represented by another prominent Washington attorney in connection with her subpoena in the Jones case. The OIC also uncovered evidence that in January of 1998, Lewinsky accepted a job offer from Revlon; that Jordan assisted her in obtaining that job offer; and that Jordan may have assisted Lewinsky in obtaining the job as a result of Lewinsky’s willingness to perjure herself regarding the true nature of her relationship with President Clinton and in support of Clinton’s own perjured testimony. The OIC therefore deemed it critical to determine if Jordan had offered Lewinsky assistance in exchange for her perjured testimony.

Ultimately, although the Independent Counsel obtained no indictments arising out of the Jones v. Clinton obstruction of justice and perjury investigation, the President was impeached, as well as held in contempt by the judge in the Jones litigation. Further, the Independent Counsel entered into a bargain with the President whereunder the President admitted wrongdoing; accepted other non-criminal sanctions; and the Independent Counsel filed a final report. That final report expressed the conclusion “that sufficient evidence existed to prosecute [President Clinton] and that such evidence would ‘probably be sufficient to obtain and sustain a conviction ... by an unbiased trier of fact.’ ” Final Report at 41 (quoting United States Attorneys Manual Title 9-27.001-9-27.050).

In response to the investigation of his alleged connection with the perjury and obstruction of justice, Jordan retained legal counsel. He now petitions for the fees incurred in that representation.

II. ANALYSIS

As we have had frequent occasion to note before, the Ethics in Government Act, unique in the criminal law structure of the United States, provides for reimbursement of attorneys’ fees expended by subjects in defense against an investigation under the Act. Specifically, 28 U.S.C. § 593(1) provides:

Upon the request of an individual who is the subject of an investigation conducted by an independent counsel pursuant to this chapter, the division of the court may, if no indictment is brought against [1253]*1253such individual pursuant to that investigation, award reimbursement for those reasonable attorneys’ fees incurred by that individual during that investigation which would not have been incurred but for the requirements of this chapter.

As we have in the past, we note that because this attorneys’ fee provision “constitutes a waiver of sovereign immunity it is to be strictly construed.” In re: Nofziger, 925 F.2d 428, 438 (D.C.Cir., Spec.Div., 1991) (per curiam). Therefore, we are authorized to award attorney fees only where petitioner has established the following elements:

(1) he is a “subject” of such investigation;
(2) the fees were incurred “during” the investigation;
(3) the fees would not have been incurred “but for” the requirements of the Act; and
(4) the fees are “reasonable.”

In re: North (Reagan Fee Application), 94 F.3d 685, 687 (D.C.Cir., Spec.Div., 1996) (citing In re: North (Cave Fee Application), 57 F.3d 1117, 1119 (D.C.Cir., Spec.Div., 1995)).

Jordan easily meets the first two requirements of the Act.

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In re Madison Guaranty Savings & Loan, 344 F.3d 1250, 2003 WL 22231590 (D.C. Cir. 2003).

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