Natural Resources Defense Council, Inc. v. Winter

543 F.3d 1152, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20242, 2008 U.S. App. LEXIS 19620, 2008 WL 4211585
Court of Appeals for the Ninth Circuit·Decided September 16, 2008·No. 07-55294·Published·Cited by 30 cases

Opinion

MILAN D. SMITH, JR., Circuit Judge:

Defendant-Appellant, Donald C. Winter (the Navy), appeals the district court’s decision to award attorneys’ fees to Plaintiffs pursuant to the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412. The Navy claims that (1) the amount of the award for some of the attorneys working on the case should not have been enhanced above the *1155 statutory rate, (2) the limited extent of Plaintiffs’ success merited a reduction in fees, and (3) the award of appellate fees was improper because the fee application was filed in the district court, not in the court of appeals. We conclude that the district court did not abuse its discretion on the second and third issues. However, because we conclude that the standard used by the district court to determine the first issue constitutes an error of law, we vacate the district court’s order awarding fees and remand for additional fact finding and recalculation of fees in accordance with this opinion.

FACTUAL AND PROCEDURAL BACKGROUND

A. The RIMPAC 2006 Suit

On June 28, 2006, the Natural Resources Defense Council (NRDC), along with several other environmental groups (collectively, Plaintiffs) filed suit (hereinafter NRDC II) against Winter, in his capacity as Secretary of the Navy, alleging that the Navy had violated the National Environmental Policy Act (NEPA), the Marine Mammal Protection Act (MMPA), and the Administrative Procedure Act (APA). Plaintiffs also filed an application for a temporary restraining order (TRO) and a preliminary injunction to enjoin the Navy’s use of mid-frequency active sonar during its Rim of the Pacific (RIMPAC) 2006 training exercise. RIMPAC 2006 was a major multi-national Navy training exercise that took place in the waters surrounding the Hawaiian Islands from June 26 to July 28, 2008. Starting July 6, the training included the use of mid-frequency active sonar, which is known to disrupt some of the marine mammals that live in those waters. Attorneys at the California-based firm Irell & Manella LLP (Irell) provided outside representation to the environmental groups.

On June 30, the Navy invoked the national defense exemption contained in the MMPA, which had the effect of exempting all mid-frequency active sonar activity from compliance with the MMPA. The Navy also stated its intent to comply with the mitigation measures set forth in the Incidental Harassment Authorization approved by the National Marine Fisheries Service on June 27.

On July 3, the district court granted the TRO on the NEPA claim, enjoining the use of mid-frequency active sonar for ten days pending a hearing on whether to grant a preliminary injunction, and also ordered the parties to “meet and confer ... to determine if an agreement can be reached on mitigation measures that would avoid the need for further provisional relief in this case.” The Navy immediately appealed the TRO to this court.

The parties settled four days later, on July 7, one day after the scheduled start of sonar training. As part of the settlement, the Navy agreed to implement or modify several mitigation measures it had previously rejected. The TRO appeal was voluntarily dismissed on motion by the parties prior to any ruling on the merits. In this case, we consider the propriety of the district court’s award of attorneys’ fees.

B. Companion Case

At the time Plaintiffs brought this suit, a companion case was concurrently being litigated in the same court, in front of the same judge. NRDC v. Winter, No. CV 05-7513 EMC (C.D. Cal. filed Oct. 19, 2005) (hereinafter NRDC I). At the time the TRO was granted in NRDC II, the attorneys were still litigating threshold issues such as jurisdiction and standing in NRDC I. In fact, the Second Amended Complaint in NRDC I was not filed until April 2008, and the case is still being litigated.

*1156 NRDC I challenges the Navy’s use of mid-frequency active sonar in all of its testing and training exercises, including the biennial RIMPAC training exercise, alleging violations of NEPA, APA, and the Endangered Species Act. The same legal issues presented in this suit — whether the Navy complied with certain federal statutes — remain at issue in NRDC I. The factual issues are also substantially the same, except that NRDC I covers a wider range of Navy training exercises.

Finally, the NRDC I Plaintiffs are all involved in this suit with the exception of the League for Coastal Protection. Plaintiffs’ counsel for NRDC I included all of the Irell attorneys, the senior NRDC attorneys, and one of the junior NRDC attorneys litigating this suit. At least two of the Navy’s attorneys in NRDC I are also involved in this case.

C. Background of Plaintiffs’ Attorneys

Plaintiffs’ attorneys consisted of two senior and two junior in-house attorneys from NRDC, as well as one senior litigation partner and three junior associates from Irell. The Navy does not contest the award of enhanced fees for the efforts of the two senior NRDC attorneys, so we do not discuss their qualifications.

1. Junior NRDC attorneys

During the prosecution of this suit, one junior NRDC attorney served as counsel in NRDC I and in NRDC v. Gutierrez, 457 F.3d 904 (9th Cir.2006), the latter also being a challenge to the Navy’s use of low-frequency sonar. At NRDC, she worked primarily on marine mammal protection and developed expertise on the specific issue of high-intensity underwater sound. She has co-authored a journal article and a report on the topic of sonar and has spoken at the United Nations and other environmental law fora on the issue. She also served as part of a working group drafting guidelines for the conduct of noise-producing activities in the Mediterranean Sea.

The second NRDC junior attorney had graduated from law school and had worked as a full-time consultant-paralegal at NRDC for over ten years, but was not a member of the bar at the time this suit was settled. He also had developed expei”-tise in the area of high-intensity underwater sound. He is the author of two editions of a report and the co-author of a journal article on the topic of noise and its effect on mammals, and the co-author for the entry for “sonar” in the Encyclopedia of Tourism in Marine Environments. He had been appointed an Alternate Member and Subcommittee Member to the Federal Advisory Committee on Acoustic Impacts on Marine Mammals convened by the U.S. Marine Mammal Commission, and served on the review panel for the Congressional Research Service’s 2005 report to Congress entitled “Active Military Sonar and Marine Mammals.” Finally, he had spoken at numerous events on the impact of sonar on marine mammals.

2. Irell attorneys

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Natural Resources Defense Council, Inc. v. Winter, 543 F.3d 1152, 38 Envtl. L. Rep. (Envtl. Law Inst.) 20242, 2008 U.S. App. LEXIS 19620, 2008 WL 4211585 (9th Cir. 2008).

543 F.3d 1152 (Natural Resources Defense Council, Inc. v. Winter) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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