Oklahoma Aerotronics, Inc. v. United States of America, Oklahoma Aerotronics, Inc. v. United States of America

943 F.2d 1344, 37 Cont. Cas. Fed. 76,229, 291 U.S. App. D.C. 401, 1991 U.S. App. LEXIS 21338, 1991 WL 175624
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 13, 1991
Docket90-5222, 90-5253
StatusPublished
Cited by52 cases

This text of 943 F.2d 1344 (Oklahoma Aerotronics, Inc. v. United States of America, Oklahoma Aerotronics, Inc. v. United States of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oklahoma Aerotronics, Inc. v. United States of America, Oklahoma Aerotronics, Inc. v. United States of America, 943 F.2d 1344, 37 Cont. Cas. Fed. 76,229, 291 U.S. App. D.C. 401, 1991 U.S. App. LEXIS 21338, 1991 WL 175624 (D.C. Cir. 1991).

Opinions

Opinion for the Court filed by Circuit Judge RANDOLPH.

Opinion concurring and dissenting filed by Circuit Judge WILLIAMS.

RANDOLPH, Circuit Judge:

In 1981, Oklahoma Aerotronics, Inc. filed an application for attorney’s fees and expenses under the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412, after winning a lawsuit against the Small Business Administration. Nine years later, the district court awarded OAI fees and expenses, together with an enhancement for delay in payment. The court refused, however, to award interest on the fees and expenses due. OAI and the government bring cross-appeals from this decision.

OAI argues two points. It contends that the district court erred in reducing a portion of its fee claim by two-fifths and by refusing to award it interest on fees running from the date the fees were incurred to the time of the award. We reject both claims, finding the district court’s actions within its discretion. The government argues that the court erred in concluding that the delay between the time of OAI’s fee application and the time of the award amounted to a “special factor” under EAJA. We disagree and uphold the court’s treatment of this delay as a factor warranting an increased award. The government also contends the district court erred by compensating OAI for the delay in the payment of its expenses, and by enhancing certain fees for the period prior to EAJA’s effective date. We agree with both arguments, and reverse the district court’s order on these points.

I

OAI is an electronics design and manufacturing firm that competes for government contracts in the defense industry. In 1971 OAI became a participant in the Small Business Administration’s procurement assistance program, established under section 8(a) of the Small Business Act of 1953, 15 U.S.C. § 637(a). The SBA terminated OAI from the program on March 22, 1978, after several procedural irregularities, which became the basis of this lawsuit. OAI sued the SBA on May 3,1978. The district court granted summary judgment against OAI in July of 1980. On August 27, 1981, this court reversed, finding that the SBA had no rational basis for its decision and ordering that OAI be restored to the program as an incumbent. Oklahoma Aerotronics, [1346]*1346Inc. v. United States, 661 F.2d 976, 978 (D.C.Cir.1981). On October 28, 1981, the district court, on remand, ordered OAI reinstated in the section 8(a) program.

Between the time of our decision and the order of the district court, EAJA took effect. EAJA applied to all civil actions pending on its effective date, October 1, 1981, and thus applied to this case. Pub.L. No. 96-481, § 208, 94 Stat. 2321, 2330 (1980). EAJA entitles a party prevailing against the government in a case in which the government’s position was not substantially justified to an award of attorney’s fees and expenses, unless special circumstances make an award unjust. 28 U.S.C. § 2412(d)(1)(A). Attorney’s fees may not, however, be awarded in excess of $75 per hour unless the court determines that an increase in the cost of living or a “special factor” warrants a higher fee. 28 U.S.C. § 2412(d)(2)(A).

On November 25, 1981, OAI filed an application for fees under the Act. Briefing on the application was completed in March 1982. The application then remained pending before a district judge without action for almost eight years. The record does not reveal the reason for the district judge’s neglect. On August 8, 1989, the Chief Judge of the district court — to whom the case had not been assigned — ordered the parties to report on the status of the case. The parties filed a joint response and the Chief Judge set a briefing schedule. The case was reassigned on March 14, 1990, to Judge Gesell, who promptly issued a memorandum order on March 28, 1990, holding the SBA liable for attorney’s fees and expenses and prescribing the method by which these items were to be calculated.

The government does not contest the district court’s findings that OAI was the prevailing party in the underlying lawsuit, and that the government’s position had not been substantially justified. The court determined that OAI should be compensated for the hours its attorneys expended in litigating the merits. However, the court found compensable only three-fifths of the hours OAI claimed for work on the fee applications. In the court’s opinion, the total amount of hours OAFs attorneys devoted to this matter “reflected considerable unnecessary work.” In addition, the court awarded OAI compensation for its expenses, including time billed by paralegals. As to the delay, the district court ruled that this warranted “an additional increase based on the special factor of delay for all attorney hours reasonably claimed” and for expenses. The court rejected OAI’s request for an award of interest.

OAI recalculated its fees using the method ordered by the district court, and the court adopted these new calculations in an order issued on May 14, 1990. Under the district court’s formula, all the time OAI billed at rates below $75 per hour was accepted at face value. No time billed pri- or to 1981 would be compensated at a rate of more than $75 per hour before adjusting for inflation. The court enhanced these fees by the percentage increase in the cost of living from the month the hours were billed through June 1989. The court also enhanced paralegal fees and other expenses using the same formula. All com-pensable attorney time billed at $75 per hour or more was calculated at the rate of $75 per hour. That amount was then enhanced by 36.5 percent, to reflect the increase in the cost of living between 1981 and June 1989. This produced an hourly rate of $102.38 per hour for all the compen-sable time billed by OAFs attorneys after 1981. The court refused to grant an enhanced compensation for the period after June 1989 on the ground that delay after that point was reasonable and therefore not a special factor under EAJA. As a result, the district court awarded OAI $295,720.17, rather than the $631,519.44 OAI requested.

II

A

We first consider OAFs challenge to the district court’s decision to award fees for only three-fifths of the hours billed by OAFs attorneys for work on the fee applications. OAI protests that its lawyers worked diligently to cover all the bases necessary to obtain fees. That may be. [1347]*1347But there is a point at which thorough and diligent litigation efforts become overkill. The district court must disallow claims for “excessive, redundant, or otherwise unnecessary” charges, Hensley v. Eckerhart, 461 U.S. 424, 434, 103 S.Ct. 1933, 1939, 76 L.Ed.2d 40 (1983); Action on Smoking and Health v. Civil Aeronautics Bd., 724 F.2d 211, 221 (D.C.Cir.1984), and the determination of how much to trim from a claim for fees is committed to the court’s discretion. See Pierce v. Underwood,

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943 F.2d 1344, 37 Cont. Cas. Fed. 76,229, 291 U.S. App. D.C. 401, 1991 U.S. App. LEXIS 21338, 1991 WL 175624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oklahoma-aerotronics-inc-v-united-states-of-america-oklahoma-cadc-1991.