Solla v. Berlin

106 A.D.3d 80, 961 N.Y.S.2d 55

This text of 106 A.D.3d 80 (Solla v. Berlin) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Solla v. Berlin, 106 A.D.3d 80, 961 N.Y.S.2d 55 (N.Y. Ct. App. 2013).

Opinions

OPINION OF THE COURT

Mazzarelli, J.E

Eleven years ago, in Matter of Auguste v Hammons (285 AD2d 417 [1st Dept 2001]), this Court held that when a person commences an action or proceeding against the State, and the State moots the action by voluntarily granting the relief sought, the State Equal Access to Justice Act (State EAJA) (CPLR 8600 et seq.) does not entitle the person to recover attorneys’ fees under the theory that the lawsuit was the “catalyst” for the favorable state action. The holding was wholly based on Buckhannon Board & Care Home, Inc. v West Virginia Dept. of Health & Human Resources (532 US 598 [2001]), which was decided by the [82]*82United States Supreme Court after Auguste had been argued to this Court. In Buckhannon, the Court was not interpreting the State EAJA, or even its federal counterpart, the Federal Equal Access to Justice Act (Federal EAJA) (28 USC § 2412 [d])Rather, it was reviewing fee-shifting provisions in two antidiscrimination statutes, and it held that an award of attorneys’ fees may not be made under the “catalyst theory,” because for a party to be considered a “prevailing party” the recovery must have been judicially sanctioned. This holding upended decisions of virtually all of the federal circuit courts, which had long applied the catalyst theory in awarding attorneys’ fees.

Because Auguste was briefed and argued to this Court before Buckhannon was decided, the parties assumed that the catalyst theory applied to the State EAJA. As a result, and as suggested by the lack of discussion of the issue in our short memorandum decision, it appears that this Court was not focused on the qualitative differences between the two statutes. Relying on the fact that the State EAJA was explicitly intended to be “similar” to the Federal EAJA (CPLR 8600), this Court strictly applied the Buckhannon holding. Since Auguste was decided, this Court has only had occasion to cite it once, in Matter of Wittlinger v Wing (289 AD2d 171 [1st Dept 2001], affd 99 NY2d 425 [2003]). However, in Wittlinger, unlike in the instant case, this Court also found that the State’s position was substantially justified, so an award of attorneys’ fees would have been denied regardless. Notably, in affirming Wittlinger, the Court of Appeals, although presented with the opportunity to declare that, in light of Buckhannon, the State EAJA does not embrace the catalyst theory expressly declined to do so, stating that “we neither endorse nor repudiate” the theory (99 NY2d at 433).

Now we are once again presented with the opportunity to determine whether Buckhannon controls the State EAJA. After careful analysis and consideration, we decline to follow Auguste. There is no evidence to suggest that the New York State Legislature, in enacting the State EAJA, ever intended to eliminate attorneys’ fee awards under the catalyst theory. In fact, ample evidence supports the contrary conclusion. The legislature intended the statute to be applied as the federal law was interpreted at the time the State EAJA was enacted, and, in any event, the application of the Federal EAJA to the State EAJA was not meant to be all encompassing.

In this case, on September 16, 2010, the city respondents issued a notice of decision to petitioner, a disabled person, reduc[83]*83ing the amount of the “[Restricted shelter payment” component of petitioner’s public assistance benefits by approximately $200 per month. Petitioner requested a fair hearing before the New York State Office of Temporary and Disability Assistance (OTDA) to challenge this reduction. At the hearing, the Human Resources Administration stipulated to withdraw its notice of decision and to restore any lost benefits. OTDA thereafter issued a decision after fair hearing (DAFH) ordering the city respondents to withdraw the September 16, 2010 notice of decision and restore petitioner’s benefits, retroactive to the date of the action reducing the benefits. However, the city respondents failed to comply with the DAFH.

Thus, petitioner commenced this CPLR article 78 proceeding seeking enforcement of the DAFH and attorneys’ fees under the State EAJA. Two weeks later, the city respondents complied with the DAFH and retroactively restored petitioner’s shelter allowance benefits. Respondents then moved to dismiss the proceeding on mootness grounds.

The article 78 court dismissed the petition as moot. It also denied petitioner’s application for attorneys’ fees. Noting that she had not obtained an enforceable judgment, the court rejected petitioner’s assertion that she was a prevailing party under the catalyst theory. While the court found that petitioner’s article 78 proceeding was “undoubtedly” the catalyst for respondents’ eventual compliance with the DAFH, that respondents’ delay was arbitrary, and that the petition “was the only way left for [petitioner] to get their attention after being ignored for months,” it held that this did not make petitioner a prevailing party under New York law in light of Auguste.

CPLR 8600 provides as follows:

“It is the intent of this article, which may hereafter be known and cited as the ‘New York State Equal Access to Justice Act’, to create a mechanism authorizing the recovery of counsel fees and other reasonable expenses in certain actions against the state of New York, similar to the provisions of federal law contained in 28 U.S.C. § 2412(d) and the significant body of case law that has evolved thereunder” (footnote omitted).

CPLR 8601, the operative section of the statute, provides as follows:

“Fees and other expenses in certain actions against the state
[84]*84“(a) When awarded. In addition to costs, disbursements and additional allowances awarded pursuant to sections eight thousand two hundred one through eight thousand two hundred four and eight thousand three hundred one through eight thousand three hundred three of this chapter, and except as otherwise specifically provided by statute, a court shall award to a prevailing party, other than the state, fees and other expenses incurred by such party in any civil action brought against the state, unless the court finds that the position of the state was substantially justified or that special circumstances make an award unjust. Whether the position of the state was substantially justified shall be determined solely on the basis of the record before the agency or official whose act, acts, or failure to act gave rise to the civil action. Fees shall be determined pursuant to prevailing market rates for the kind and quality of the services furnished, except that fees and expenses may not be awarded to a party for any portion of the litigation in which the party has unreasonably protracted the proceedings.
“(b) Application for fees. A party seeking an award of fees and other expenses shall, within thirty days of final judgment in the action, submit to the court an application which sets forth (1) the facts supporting the claim that the party is a prevailing party and is eligible to receive an award under this section, (2) the amount sought, and (3) an itemized statement from every attorney or expert witness for whom fees or expenses are sought stating the actual time expended and the rate at which such fees and other expenses are claimed.”

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Related

Correa v. Heckler
587 F. Supp. 1216 (S.D. New York, 1984)
MATTER OF WITTLINGER v. Wing
786 N.E.2d 1270 (New York Court of Appeals, 2003)
Sutka v. Conners
538 N.E.2d 1012 (New York Court of Appeals, 1989)
New York State Clinical Laboratory Ass'n v. Kaladjian
649 N.E.2d 811 (New York Court of Appeals, 1995)
Jones v. Koch
117 A.D.2d 647 (Appellate Division of the Supreme Court of New York, 1986)
Auguste v. Hammons
285 A.D.2d 417 (Appellate Division of the Supreme Court of New York, 2001)
Wittlinger v. Wing
289 A.D.2d 171 (Appellate Division of the Supreme Court of New York, 2001)

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Bluebook (online)
106 A.D.3d 80, 961 N.Y.S.2d 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/solla-v-berlin-nyappdiv-2013.