Loudner v. United States

379 F. Supp. 2d 1048, 2005 U.S. Dist. LEXIS 15430, 2005 WL 1802514
CourtDistrict Court, D. South Dakota
DecidedJuly 26, 2005
DocketCIV 94-4294
StatusPublished

This text of 379 F. Supp. 2d 1048 (Loudner v. United States) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loudner v. United States, 379 F. Supp. 2d 1048, 2005 U.S. Dist. LEXIS 15430, 2005 WL 1802514 (D.S.D. 2005).

Opinion

MEMORANDUM OPINION AND ORDER

PIERSOL, Chief Judge.

Following the entry of Judgment in this case, Plaintiffs filed a Motion for Attorney and Expenses Under the Equal Access to Justice Act, Doc. 305. The motion has been fully briefed by the parties. Having carefully considered the entire record in this action, the Court will grant the motion for the reasons stated below, but will require additional briefing regarding the amount to be awárded.

*1050 The history of this action has been set forth in several prior opinions and will be repeated in this opinion only as necessary to resolve the pending motion. This action was filed in 1994 to allow Plaintiffs to apply for a share of the Judgment Fund at issue in this lawsuit. Plaintiffs are lineal descendants who were not previously notified by the Secretary of the Interior (“Secretary”) of the existence of the Judgment Fund at issue in this lawsuit. Throughout these proceedings, Plaintiffs amended their complaint several times. The Fourth Amended Complaint, Doc. 204, was -the final complaint filed in this action. The primary amendment to the initial complaint was to add a challenge to the Mississippi Sioux Tribes Judgment Fund Distribution Act of 1998 (“the 1998 Act”), Pub. L.No. 105-387, 112 State. 3471 (codified at 25 U.S.C. § 1300d-21 et seq.) (2001). On February 24, 2004, the Court dismissed with prejudice several paragraphs of the Fourth Amended Complaint to the extent that those paragraphs challenged the constitutionality or validity of the 1998 Act. (Memorandum Opinion and Order, Doc. 277.) Pursuant to Federal Rule of Civil Procedure 54(b) a final judgment was entered in favor of the Defendants as to the dismissed claims. (Judgment, Doc. 278.)

The remaining claims in the Fourth Amended Complaint were dismissed as moot in January 2005 and a Judgment was entered in favor of Defendants. (Doc. 302, 303, February 16, 2005.) The claims that were dismissed as moot in January 2005 involved the Defendants’ failure to notify Plaintiffs of the existence of the Judgment Fund. The two types of relief requested in the Fourth Amended Complaint were for distribution or damages in the amount of the Plaintiffs’ share of the Judgment Fund, plus interest, and an award of attorney’s fees and costs under the Equal Access to Justice Act. In a Special Status Report filed on October 12, 2004, Doc. 298, the Defendants reported that the lineal descendants’ final share of the Judgment Fund was distributed on Friday, October 1, 2004.

Soon after this action was filed, the Court issued a preliminary injunction on January 6, 1995, restraining the Defendants from distributing the Judgment Fund. The Court held that Plaintiffs’ claims were time-barred, however, and dismissed this action. The preliminary injunction was dissolved on October 13,1995. On appeal, the Eighth Circuit reversed the dismissal of this action. See Loudner v. United States, 108 F.3d 896 (8th Cir.1997). Upon remand, the Court reinstated the preliminary injunction to prohibit the distribution of the Judgment Fund. (Order, Doc. 66, April 28, 1998.) The Judgment Fund, therefore, was not distributed until Plaintiffs were given an opportunity to submit their applications to share in the fund. The preliminary injunction was later modified to allow partial distributions of the fund in approximately April 2002 (Doc. 232), in December 2003 (Doc. 271) and in September 2004 (Doc. 291). After all applications were processed, including Plaintiffs’ applications, and the final roll was prepared, Defendants requested that the Court lift the preliminary injunction to allow the final distribution of the Judgment Fund. That request was granted (Doc. 295) and the final distribution of the Judgment Fund was made on or about October 1, 2004.

DISCUSSION

The Supreme Court explained the “American rule” is that parties to litigation are ordinarily required to bear their own attorney’s fees. See Buckhannon Bd. & Care Home, Inc. v. West Virginia Dept. of Health and Human Res., 532 U.S. 598, 602, 121 S.Ct. 1835, 149 L.Ed.2d 855 (2001). An award of attorney’s fees to the “prevailing party,” however, is authorized *1051 in several statutes, including the Equal Access to Justice Act (“EAJA”). The EAJA permits most parties who prevail against the United States in civil litigation to recover costs. See 28 U.S.C. § 2412(a) (1994). The EAJA also permits those parties to recover attorney fees and some litigation expenses unless “the position of the United States was substantially justified or that special circumstances make an award unjust.” 28 U.S.C, § 2412(d)(1)(A) (Supp.2005). The EAJA is a partial waiver of the United States’ sovereign immunity, and, thus, must be strictly construed in the government’s favor. See Ardestani v. Immigration and Naturalization Serv., 502 U.S. 129, 137, 112 S.Ct. 515, 116 L.Ed.2d 496 (1991).

An applicant for attorneys’ fees and expenses under the EAJA must submit an application for fees “within thirty days of final judgment in the action.” 28 U.S.C. § 2412(d)(1)(B) (1994). A “final judgment” is defined as “a judgment that is final and not appealable.” 28 U.S.C. § 2412(d)(2)(G) (Supp.2005). Plaintiffs’ application for fees and expenses under the EAJA was timely submitted. In light of the Judgment of dismissal in favor of Defendants, the Court directed the parties to brief the issue of whether Plaintiffs are prevailing parties as defined under the EAJA in light of the preliminary injunctions granted by the Court and also in light of the reversal in Plaintiffs’ favor that Plaintiffs obtained from the Eighth Circuit Court of Appeals. (Order, Doc. 302.)

1. Prevailing party

The first issue that must be addressed is whether Plaintiffs are “prevailing parties” under the EAJA. The Supreme Court explicitly rejected the “catalyst theory” as a basis for defining prevailing party because that theory “allows an award where there is no judicially sanctioned change in the legal relationship of the parties.” Buckhannon, 532 U.S. at 605, 121 S.Ct. 1835. The Eighth Circuit recognized, “[t]he Supreme Court has made clear ‘that a plaintiff [must] receive at least some relief on the merits of his claim before he can be said to prevail,’ ” Id. at 603-04, 121 S.Ct. 1835 (quoting Hewitt v. Helms, 482 U.S. 755, 760, 107 S.Ct.

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Bluebook (online)
379 F. Supp. 2d 1048, 2005 U.S. Dist. LEXIS 15430, 2005 WL 1802514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loudner-v-united-states-sdd-2005.