Levernier Construction, Inc. v. United States

36 Cont. Cas. Fed. 75,957, 21 Cl. Ct. 683, 1990 U.S. Claims LEXIS 411, 1990 WL 165343
CourtUnited States Court of Claims
DecidedOctober 30, 1990
DocketNo. 531-87C
StatusPublished
Cited by5 cases

This text of 36 Cont. Cas. Fed. 75,957 (Levernier Construction, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Levernier Construction, Inc. v. United States, 36 Cont. Cas. Fed. 75,957, 21 Cl. Ct. 683, 1990 U.S. Claims LEXIS 411, 1990 WL 165343 (cc 1990).

Opinion

OPINION

REGINALD W. GIBSON, Judge.

Introduction

This case comes before the court on plaintiff’s application for attorney fees and expenses under the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412 (1988 ed.), and defendant’s opposition thereto. On July 3, 1989, the parties stipulated to the entry of judgment in favor of plaintiff in the amount of $305,552, in full settlement of plaintiff’s claim arising out of a construction contract. This settlement was “exclusive of any fees and expenses to which plaintiff may be entitled under the Equal Access to Justice Act” (emphasis added).

As an initial matter, and to prevail, plaintiff must show that it meets the eligibility requirements of the EAJA, infra. If plaintiff shows that it is eligible, defendant must then show that its position was substantially justified or that special circumstances exist which would make an award unjust, in order to preclude an EAJA award. On the other hand, if defendant fails to show that an award would be improper, the final step in the analysis is the determination of the amount of the award.

[686]*686 Facts

Plaintiff Levernier Construction, Inc. (Levernier)1 contracted with the United States Air Force (Air Force), under contract no. F45613-84-C0024, to build a new commissary facility at Fairchild Air Force Base, Washington. The contract was for a firm fixed price of $7,633,000. During the construction, numerous disputes arose concerning compensation for extra work, rework, alleged defective specifications, and increased costs due to delays allegedly caused by the government.

On February 10, 1986, Levernier submitted a detailed request for an equitable adjustment to the contracting officer, seeking an additional $884,597. The submission was prepared by a consulting firm specializing in construction contract claims, and contained 23 separate claims grouped into seven categories. In a perfunctory final decision rendered October 30, 1986 — a decision which merely recited the amount sought for each claim and the amount allowed — the contracting officer awarded Levernier $141,142.

On August 26, 1987, plaintiff appealed the contracting officer’s decision to this court under the Contract Disputes Act, 41 U.S.C. § 609(a)(1). In its initial complaint, plaintiff prayed for $839,998. One month after the time allowed for filing an answer, defendant answered the complaint, asserting categorical denials and a lack of knowledge sufficient to form a belief as to the truth of the allegations in the complaint. Thirty-three days later, the parties stipulated to the filing of an amended complaint, which defendant duly answered.

On October 30, 1988, defendant filed a motion under RUSCC 37(a), seeking an order compelling plaintiff to respond to certain interrogatories and requests for production of documents. Counsel resolved the dispute amicably, and the motion to compel was withdrawn as moot.

On March 7 and 8, 1989, two attorneys accompanied Bernard and Paul Levernier to Washington, D.C., from Spokane, Washington, for settlement negotiations. The attorneys were Patrick A. Sullivan, attorney of record for Levernier and a partner in a Spokane, Washington law firm, and his associate, Pamela J. DeRusha. The four met with the attorney of record for the United States, who was accompanied by counsel for the Air Force.

The settlement talks proved fruitful, and on July 3, 1989, the parties filed a stipulation for the entry of judgment in favor of plaintiff in the amount of $305,552. Under the stipulation, as previously underscored, the judgment was to be “exclusive of any fees and expenses to which plaintiff may be entitled under the Equal Access to Justice Act, 28 U.S.C. § 2412.” Accordingly, the judgment was entered on July 10,1989, “exclusive of any fees and expenses to which plaintiff may be entitled under the Equal Access to Justice Act.” On August 4, 1989, plaintiff filed the present application for attorney fees and expenses under the EAJA, seeking $60,633 in attorney fees, $43,170.86 in consulting fees, and $10,542.99 in expenses, or a total of $114,-346.85.

Contentions of the Parties

Plaintiff

Plaintiff alleges that it is the prevailing party, that its net worth and number of employees are below the statutory limit, and that the government’s position was not substantially justified. Plaintiff also asks the court to award it $43,170.86 in consulting fees, even though virtually all of those fees were incurred in the proceedings before the contracting officer. Further, plaintiff asserts that due to Mr. Sullivan’s expertise in government construction contract law, an attorney fee greater than the statutory cap of $75 per hour should be awarded. Finally, plaintiff asks the court to adjust upwardly the attorney fee award, to account for an increase in the cost of living since the enactment of the EAJA.

[687]*687 Defendant

Defendant does not seriously argue that plaintiff is not entitled to any EAJA award. However, defendant does assert that it was substantially justified as to those claims which settled for $0, or alternatively, that plaintiff did not prevail within the meaning of the EAJA with respect to those claims which settled for $0. Defendant asks the court to award, at most, 36.4% (i.e., $305,-552 divided by $839,998) of the amount sought in the EAJA application, to reflect the fact that the case settled for 36.4% of the amount sought in the amended complaint. In addition, defendant asks the court to reduce the award further from the amount sought, arguing that: (i) plaintiff cannot recover fees and expenses connected to preparing a response to the government’s motion to compel; (ii) plaintiff cannot recover fees and expenses incurred during the proceedings before the contracting officer; (iii) the hourly rate claimed herein for attorneys is too high; (iv) photocopying expenses are not recoverable; (v) the Leverniers’ travel expenses to Washington, D.C. to participate in settlement negotiations are not recoverable under the EAJA; (vi) the cost of Ms. DeRusha’s travel to Washington, D.C. to participate in the settlement negotiations is not recoverable; (vii) some of the attorney time is insufficiently documented, and thus, is not recoverable; (viii) plaintiff cannot recover fees and costs relating to the preparation of the EAJA application, since the government’s opposition to it is substantially justified; and (ix) plaintiff has not made a sufficient showing to justify exceeding the statutory cap of $75 per hour for attorney fees.

Scope of the Court’s Opinion

This case requires the court to determine — (i) the extent to which a party obtaining money in settlement of its claim against the United States should be considered to have “prevailed” for purposes of the EAJA; (ii) what items are properly included in an EAJA award for “fees and other expenses”; and (iii) the appropriate rate for attorney fees.

Discussion

A. Entitlement to an EAJA Award

Levernier’s entitlement to an EAJA award pursuant to 28 U.S.C.

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Bluebook (online)
36 Cont. Cas. Fed. 75,957, 21 Cl. Ct. 683, 1990 U.S. Claims LEXIS 411, 1990 WL 165343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levernier-construction-inc-v-united-states-cc-1990.