National Ass'n of Manufacturers v. United States Department of Labor

962 F. Supp. 191, 1997 U.S. Dist. LEXIS 5826, 1997 WL 203303
CourtDistrict Court, District of Columbia
DecidedApril 24, 1997
DocketCivil Action 95-0715 (RCL)
StatusPublished
Cited by18 cases

This text of 962 F. Supp. 191 (National Ass'n of Manufacturers v. United States Department of Labor) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Ass'n of Manufacturers v. United States Department of Labor, 962 F. Supp. 191, 1997 U.S. Dist. LEXIS 5826, 1997 WL 203303 (D.D.C. 1997).

Opinion

MEMORANDUM OPINION

LAMBERTH, District Judge.

This case comes before the court pursuant to plaintiff National Association of Manufacturers’ (“NAM”) application for reasonable attorney’s fees, expenses and costs incurred in their prosecution of this action. The Association files for this award pursuant to 28 U.S.C. § 2412(a) and (d), the Equal Access to Justice Act (“EAJA”). For the reasons contained herein, this court grants the plaintiffs application for an award under the EAJA. The defendant United States Department of *193 Labor (“DOL”) will be ordered to compensate NAM in the amount of $41,145.59.

DISCUSSION

I. PRIOR CASE HISTORY

The NAM’s initial complaint was filed with this court on April 14, 1995. The complaint challenged fifteen separate components of the DOL’s rules governing the H-1B visa program, a program that allows United States companies to employ aliens with “specialty occupation” skills that could benefit the employer. In time, both sides moved for summary judgment.

On July 22,1996, this court partially granted and denied both motions for summary judgment. The NAM successfully established that six significant components of the H-1B program promulgated by the DOL did not comply with the notice and comment requirements of the Administrative Procedure Act (“APA”), 5 U.S.C. § 553(b)(3) (1994). Accordingly, this court granted partial summary judgment to the NAM, electing to set aside the six violative components. In addition, this comí; rejected the NAM’s challenge to six of the H-1B components, and found that the challenge to three of the components was not yet ripe for review. This court therefore granted partial summary judgment to the DOL on these nine issues.

A. The NAM’s Application

The NAM now submits an application pursuant to the EAJA seeking an award for the reasonable attorney’s fees, expenses, and costs incurred in the prosecution of this action. The EAJA states as follows:

Except as otherwise specifically provided by statute, a court shall award to a prevailing party ... fees and other expenses, in addition to any costs ... unless the court finds that 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) (1994).

By not challenging the NAM in their opposition brief, the DOL effectively concedes that the NAM is in fact a prevailing party for the purposes of the statute. 1 In addition, the DOL did not assert the existence of any special circumstances that would make a fee award unjust or inequitable. The DOL does, however, challenge the NAM’s ability to satisfy other requirements of the statute.

II. ELIGIBILITY UNDER THE EAJA

First, the DOL claims that the NAM is not a party eligible to receive attorney’s fees and expenses under the EAJA. 2 According to the statute, any association whose net worth exceeds $7,000,000 or whose size exceeds 500 employees at the time the civil action was filed is ineligible to receive an award as a prevailing party. 28 U.S.C. § 2412(d)(2)(B)(ii) (1994).

The NAM itself clearly satisfies these two criteria: it has a net worth below the $7,000,000 ceiling and employs less than 500 employees. Decl. of Linda Chandler at 1-2. The DOL contends, however, that since the lawsuit was brought on behalf of the NAM’s numerous members, the court should utilize the aggregate of the members’ net worth and employee numbers in determining the NAM’s eligibility under the EAJA. The NAM members include giant international corporations whose net worth and employee payroll greatly exceed the EAJA cap. 3 In addition, corporations such as these serve to benefit from the NAM’s successful challenge to the violative H-1B components. In light *194 of this, the DOL posits that the aggregate, and not merely the NAM’s individual figures, should be used to determine its EAJA eligibility.

In making this claim, the DOL relies primarily on two cases: Unification Church v. INS, 762 F.2d 1077 (D.C.Cir.1985) and National Truck Equip. Ass’n v. National Highway Traffic Safety Admin., 972 F.2d 669 (6th Cir.1992). In addition, to bolster them aggregate theory, the DOL points to the EAJA’s legislative history and Congress’ treatment of agricultural cooperative associations under the EAJA. This court finds none of these DOL arguments persuasive.

In Unification Church, three plaintiffs sought attorney’s fees pursuant to the EAJA for them successful prosecution of an action. Unification Church, 762 F.2d at 1079. These three plaintiffs, individually, all satisfied the net worth and size caps imposed by the EAJA. The Church itself was also a fourth plaintiff in the matter. According to an agreement that existed amongst the plaintiffs, the Church was to pay for all attorney’s fees incurred by the four parties. Id. at 1082. Under this arrangement, therefore, the Church, and not the three individual plaintiffs, would be the beneficiary of any EAJA fee award.

Congress intended to limit the award of fees to “small entities that find particularly burdensome the ever-rising costs of litigation.” Id. The court thus decided to look to only the parties that would be personally liable for the payment of the fees in deciding if the EAJA qualifications were met. Id. That “real party in interest” was the Church, and since the Church did not satisfy the ceiling on profits and size imposed by the EAJA, the plaintiffs were not eligible for an award of fees. Id. at 1083. To hold otherwise would allow the Church to thwart the underlying purpose behind the statutory caps.

The facts of the case at bar are clearly distinguishable from the situation described in Unification Church. In Unification Church, the key language focuses on the “ ‘fee arrangement among the plaintiffs.’ ” See American Ass’n of Retired Persons v. Equal Employment Opportunity Comm’n, 873 F.2d 402, 405 (D.C.Cir.1989). Here, no such fee arrangement exists. 4

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Bluebook (online)
962 F. Supp. 191, 1997 U.S. Dist. LEXIS 5826, 1997 WL 203303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-assn-of-manufacturers-v-united-states-department-of-labor-dcd-1997.