National Federation of Republican Assemblies v. United States

263 F. Supp. 2d 1372, 91 A.F.T.R.2d (RIA) 891, 2003 U.S. Dist. LEXIS 2287, 2003 WL 702620
CourtDistrict Court, S.D. Alabama
DecidedJanuary 17, 2003
Docket00-0759-RV-C
StatusPublished
Cited by1 cases

This text of 263 F. Supp. 2d 1372 (National Federation of Republican Assemblies v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Federation of Republican Assemblies v. United States, 263 F. Supp. 2d 1372, 91 A.F.T.R.2d (RIA) 891, 2003 U.S. Dist. LEXIS 2287, 2003 WL 702620 (S.D. Ala. 2003).

Opinion

ORDER

VOLLMER, Senior District Judge.

This matter is before the Court on the plaintiffs’ Motion for Attorneys’ Fees, Costs, and Other Expenses. (Doc. 53). The parties have filed papers supporting their respective positions, (Docs. 54, 58, 59), and the motion is now ripe for resolution. After careful consideration of the motion, the parties’ arguments and the evidentiary materials submitted by the plaintiffs, the Court concludes that the motion is due to be denied.

BACKGROUND

The relevant procedural history of this casé has been set forth in previous orders and will not be repeated herein. In August 2002, the Court entered an order declaring I.R.C. § 527(j) unconstitutional to the extent it requires disclosures of contributions and expenditures in connection with state and local electoral advocacy and to the extent it requires disclosures of expenditures in connection with federal electoral advocacy. (Doc. 47 at 68). Judgment was entered accordingly. (Doc. 48). As clarified by subsequent order, enforcement of these portions of Section 527(j) against the remaining organizational plaintiffs was enjoined. (Doc. 52).

ANALYSIS

The Equal Access to Justice Act (“EAJA”) provides in relevant part as follows:

Except as otherwise specifically provided by statute, a court shall award to a prevailing party other than the United States fees and other expenses ... incurred by that party in any civil action ... brought by or against the United States ..., 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). “For the purposes of this subsection ... ‘fees and other expenses’ includes ... reasonable attorney fees.” Id. § 2412(d)(2)(A). A “party” is an individual with a net worth of under $2 million or an organization with a net worth of under $7 million and no more than 500 employees. Id. § 2412(d)(2)(B).

The defendants argue that the plaintiffs’ demand for fees and expenses is governed by a special provision of the tax code. That section, however, applies only to proceedings “in connection with the determination, collection, or refund of any tax, interest, or penalty under this title.” I.R.C. § 7430(a). The defendants have offered no authority or explanation for the proposition that the plaintiffs’ constitutional challenge to Sections 527(i) and (j), instituted prior to any possible incurrence of a tax or penalty under their provisions, constitutes a proceeding in connection with the “determination” of a tax or penalty. At any rate, the defendants concede that “there are no significant differences” between Section 7430 and EAJA. (Doc. 58 at 5 n. 1).

The parties agree that there are. four broad issues for consideration under EAJA: (1) whether the plaintiffs are “prevailing partfies]”; (2) whether they meet the size and wealth parameters; (3) wheth *1375 er the defendants’ position was “substantially justified”; and (4) whether the plaintiffs’ fees and expenses are “reasonable.” 1

A. Prevailing Party.

EAJA does not define “prevailing party.” As noted by the plaintiffs, the Eleventh Circuit has construed the test under EAJA to be “ ‘whether [the plaintiff] has received substantially the relief requested or has been successful on the central issue.’ ” Jean v. Nelson, 863 F.2d 759, 765 (11th Cir.1988)(quoting Martin v. Heckler, 773 F.2d 1145, 1149 (11th Cir.1985)(en banc)), aff'd on other grounds, 496 U.S. 154, 110 S.Ct. 2316, 110 L.Ed.2d 134 (1990).

The plaintiffs’ unreasoned assumption that they meet this standard, (Doc. 54 at 7-8), is troublesome. The “relief requested” in the amended complaint was that Sections 527(i) and (j) be declared unconstitutional and that the defendants be enjoined from enforcing them. The plaintiffs obtained no relief with respect to Section 527(i), 2 and Section 527(j) was left intact with respect to the disclosure of contributions for federal electoral advocacy. According to the defendants, this means the plaintiffs received less than half the relief they requested. Although the Court is skeptical of the defendants’ rather crude mathematical calculus, given these glaring holes it is not immediately obvious that the plaintiffs received “substantially” the relief they requested. Cf. Pierce v. Underwood, 487 U.S. 552, 566 n. 2, 108 S.Ct. 2541, 101 L.Ed.2d 490 (1988)(equating “substantially” with “for the most part”).

Similarly, it is not obvious that the plaintiffs prevailed on “the central issue,” both because it is not clear what “the central issue” in fact was and because it is not clear what level of “success” on the central issue is required. The Court rejects as unacceptably superficial the defendants’ suggestion that, because it was the focus of the majority of counts in the original complaint and/or because it was listed first in the statement of challenges in the amended complaint, the constitutionality of Section 527(i) must have been “the central issue” in the case. On the other hand, it is difficult to consider Section 527(j) as “the central issue” when the plaintiffs afforded equal dignity to Section 527(i) in their pleadings and in their briefing on the defendants’ motion to dismiss. The central issue in the case would appear most naturally to be the constitutionality of Public Law 106-230 — that is, Sections 527(i) and (j) in combination. If that is correct, the plaintiffs’ failure to prevail with respect to the former provision and their incomplete success with respect to the latter make it difficult to conclude that they were “successful” on the central issue. See Walker v. Anderson Electrical Connectors, 944 F.2d 841, 846 n. 11 (11th Cir.1991)(“under the central issue test, the plaintiff must achieve the primary relief sought .... It is not enough to win on an important side issue.”); Taylor v. City of Fort Lauderdale, 810 F.2d 1551, 1556 n. 7 (11th Cir.1987)(“[T]he central issue test is one of practicality, not legal formalism” that should utilize a “ ‘common sense comparison between relief sought and relief ob *1376 tained’ ”)(quoting Institutionalized Juveniles v. Secretary, 758 F.2d 897, 911 (3rd Cir.1985)).

Apparently without realizing its import, the plaintiffs quote Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983), for the proposition that plaintiffs can be prevailing parties “ 'if they succeed on any significant issue in litigation which achieves

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263 F. Supp. 2d 1372, 91 A.F.T.R.2d (RIA) 891, 2003 U.S. Dist. LEXIS 2287, 2003 WL 702620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-federation-of-republican-assemblies-v-united-states-alsd-2003.