Innova Solutions, Inc. v. Baran

CourtDistrict Court, N.D. California
DecidedDecember 13, 2021
Docket5:17-cv-03674-VKD
StatusUnknown

This text of Innova Solutions, Inc. v. Baran (Innova Solutions, Inc. v. Baran) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Innova Solutions, Inc. v. Baran, (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 INNOVA SOLUTIONS, INC., Case No. 17-cv-03674-VKD

9 Plaintiff, ORDER GRANTING IN PART AND DENYING IN PART INNOVA 10 v. SOLUTIONS INC.’S MOTION FOR FEES AND COSTS PURSUANT TO 11 THE EQUAL ACCESS TO JUSTICE DONNA P. CAMPAGNOLO,1 ACT, 28 U.S.C. § 2412 12 Defendant. Re: Dkt. No. 88 13

14 I. BACKGROUND 15 In this action, Innova Solutions, Inc. (“Innova”) challenged the United States Citizenship 16 and Immigration Services’ (“USCIS”) decision denying Innova’s I-129 Petition for Nonimmigrant 17 Worker seeking an H-1B visa for its intended beneficiary, Dilip Dodda.2 On August 8, 2019, this 18 Court denied Innova’s motion for summary judgment and granted USCIS’s motion for summary 19 judgment. Innova appealed, and the Ninth Circuit reversed. Having prevailed before the Ninth 20 Circuit, Innova now moves this Court for an award of $148,625 in attorneys’ fees and $1,580.34 21 in costs pursuant to the Equal Access to Justice Act (“EAJA”), 28 U.S.C. § 2412. USCIS opposes 22 the motion. Upon consideration of the moving and responding papers, as well as the oral 23 arguments presented, the Court grants in part and denies in part Innova’s motion for fees and 24

25 1 Pursuant to Rule 25(d), Donna P. Campagnolo, the Director of U.S. Citizenship and Immigration Services’ California Service Center, is substituted in place of Kathy A. Baran. 26

2 Innova also challenged USCIS’s decisions regarding two other beneficiaries. The Court 27 adjudicated the parties’ cross-motions for summary judgment with respect to Mr. Gogumalla. 1 costs.3 2 II. DISCUSSION 3 “‘The clearly stated objective of the EAJA is to eliminate financial disincentives for those 4 who would defend against unjustified governmental action and thereby to deter the unreasonable 5 exercise of Government authority.’” Ibrahim v. U.S. Dep’t of Homeland Sec., 912 F.3d 1147, 6 1166 (9th Cir. 2019) (quoting Ardestani v. I.N.S., 502 U.S. 129, 138 (1991)). To accomplish that 7 objective, the EAJA provides:

8 Except as otherwise specifically provided by statute, a court shall award to a prevailing party other than the United States fees and 9 other expenses, in addition to any costs awarded pursuant to subsection (a), incurred by that party in any civil action (other than 10 cases sounding in tort), including proceedings for judicial review of agency action, brought by or against the United States in any court 11 having jurisdiction of that action, unless the court finds that the position of the United States was substantially justified or that 12 special circumstances make an award unjust. 13 28 U.S.C. § 2412(d)(1)(A). As relevant here, the term “party” includes “any owner of an 14 unincorporated business, or any partnership, corporation, association, . . . or organization, the net 15 worth of which did not exceed $7,000,000 at the time the civil action was filed, and which had not 16 more than 500 employees at the time the civil action was filed.” Id. § 2412(d)(2)(B)(ii). Any fee 17 application must be submitted to the court within 30 days of final judgment in the action and be 18 supported by an itemized statement. Id. § 2412(d)(1)(B). Thus, eligibility for a fee award requires 19 that (1) the party seeking fees is a “prevailing party”; (2) the party seeking fees meets the 20 employee and net worth requirements; (3) the fee application is timely filed and properly 21 supported; (4) the government’s position was not “substantially justified”; and (5) no “special 22 circumstances” make an award unjust. See Ibrahim, 912 F.3d at 1167 (citing Comm’r, I.N.S. v. 23 Jean, 496 U.S. 154, 158 (1990)). 24

25 3 All parties expressly consented that all proceedings in this matter may be heard and finally adjudicated by a magistrate judge. 28 U.S.C. § 636(c); Fed. R. Civ. P. 73. Review of the Ninth 26 Circuit’s docket indicates that the Ninth Circuit’s formal mandate was entered on March 11, 2021. See Innova Sols. v. Baran, Case No. 19-16849, Dkt. No. 67. Both sides have confirmed that apart 27 from resolving Innova’s present motion for fees and costs, no further action is required by this 1 In the present case, the first, third, and fifth factors are not at issue. USCIS opposes the fee 2 request on the grounds that (1) Innova has not shown, as a threshold matter, that it has fewer than 3 500 employees and that its net worth is less than $7 million; and (2) USCIS’s position was 4 substantially justified. USCIS also argues that even if Innova is entitled to an award, it has not 5 demonstrated that this case warrants EAJA fees at enhanced rates, and its claimed fees are 6 otherwise excessive.4 7 A. Whether Innova Is Eligible for a Fee Award 8 Under the EAJA’s definition of “party,” USCIS argues that Innova is not eligible for a fee 9 award because it had more than 500 employees and its net worth exceeded $7,000,000 at the time 10 the civil action was filed. See 28 U.S.C. § 2412(d)(2)(B)(ii). As the party seeking fees, Innova 11 has the burden of establishing its eligibility for an award. Love v. Reilly, 924 F.2d 1492, 1494 (9th 12 Cir. 1991). 13 With its moving papers, Innova submitted the declaration of Umadevi Ramachandran, who 14 states that she is Innova’s “authorized representative” and attests that on June 27, 2017 when this 15 action was filed, Innova “had approximately 144 employees and a net worth of $1,054,381.” Dkt. 16 No. 88-2. In its reply, Innova clarified that Ms. Ramachandran is its Senior Manager of Human 17 Resources (see Dkt. No. 94 at 1; see also Dkt. No. 64-1 at 2, 13, 22, 28, 32, 29, 42, 44). 18 Additionally, Innova submitted what its counsel represents to be Innova’s 2017 federal tax return 19 showing that in 2017 Innova had total assets of $19,227,095 and total liabilities of $18,172,714, 20 leaving a net worth of $1,054,381. See Dkt. No. 94-1 at ECF 13. Although USCIS does not 21 dispute that net worth is calculated by subtracting total liabilities from total assets (see Dkt. No. 92 22 at 10), it remains skeptical of Innova’s stated net worth because Innova’s documentation focuses 23 on the company’s domestic operations and does not account for Innova’s foreign affiliates. 24 Innova indisputably has foreign affiliates, including operations in India. However, Innova 25 maintains that it is the sole party before this Court and that USCIS is improperly treating different 26 Innova entities as a single entity for purposes of the EAJA. Innova’s counsel submits what he 27 1 represents to be articles of incorporation showing that Innova is a separate entity from Innova Pvt. 2 Ltd. in India. See Dkt. Nos. 94-4, 94-5. 3 At oral argument, USCIS acknowledged that the EAJA is silent regarding whether “party” 4 includes affiliates of the party to the action and informed the Court that there is no caselaw on 5 point.

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Innova Solutions, Inc. v. Baran, Counsel Stack Legal Research, https://law.counselstack.com/opinion/innova-solutions-inc-v-baran-cand-2021.