St. Paul Fire & Marine Insurance v. United States

4 Cl. Ct. 762, 20 ERC 1788, 20 ERC (BNA) 1788, 1984 U.S. Claims LEXIS 1457
CourtUnited States Court of Claims
DecidedMarch 22, 1984
DocketNo. 264-82L
StatusPublished
Cited by34 cases

This text of 4 Cl. Ct. 762 (St. Paul Fire & Marine Insurance v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Paul Fire & Marine Insurance v. United States, 4 Cl. Ct. 762, 20 ERC 1788, 20 ERC (BNA) 1788, 1984 U.S. Claims LEXIS 1457 (cc 1984).

Opinion

OPINION

KOZINSKI, Chief Judge.

After the parties filed a stipulation for dismissal with prejudice, defendant, the United States, moved for an award of attorney’s fees under the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412(b) (Supp. V 1981).

Facts

Plaintiff sued under the Federal Water Pollution Control Act, 33 U.S.C. § 1321(i)(l) (1976), to recover $1.2 million in oil cleanup costs. The complaint was filed on May 25, 1982, one day before the statute of limitations would have expired. Defendant responded within its allotted 60 days, simultaneously serving upon plaintiff a set of interrogatories that became the source of significant difficulty. That difficulty and its aftermath is described in greater detail in an earlier order. Wellen Oil Co. v. United States, 1 Cl.Ct. 98 (1982). It suffices to say here that the court imposed two sets of monetary sanctions on plaintiff and its attorney on the basis of a record “replete with instances of delay, failures to respond to motions, and ambiguous or un[765]*765satisfactory explanations.” Id. at 100. The court also dismissed the case on the ground that it had been brought in the name of a party (the oil company) that counsel was not authorized to represent. Id.

Plaintiff moved for reconsideration of the dismissal and the court granted the motion on February 14, 1983, on the condition that plaintiff promptly file an amended complaint naming St. Paul Fire & Marine Insurance Company (the real party in interest) as the plaintiff. Plaintiff did so on March 2, 1983, and defendant filed its amended answer on the same day.

Pursuant to the court’s standard Order Governing Proceedings Before Trial (OGPBT), filed in this case on February 28, 1983, the parties had until May 2, 1983, to complete discovery; the court extended that period to June 28, 1983. The court then scheduled a pretrial conference for August 16 and trial for September 19, 1983. One day before the pretrial conference the parties filed a stipulation of dismissal with prejudice. Ten days later defendant filed its application for attorney’s fees.

Position of the Parties

Defendant argues that under Ellis v. United States, 711 F.2d 1571 (Fed.Cir.1983), the court is empowered to entertain an EAJA application because this is a “transitional” case originally filed in the Court of Claims and transferred to this court by the Federal Courts Improvement Act. Defendant asserts that it is entitled to fees under subsection (b) of section 2412 because plaintiff has prosecuted this action in bad faith. In defendant’s view, plaintiff never had any chance of recovery and must have brought suit merely to extract a nuisance settlement. Defendant requests $15,000 based on over 200 hours of work at $75 per hour.

Plaintiff argues that the EAJA does not authorize an award of attorney’s fees to the United States, but only to private litigants. Plaintiff also contends that defendant is precluded from seeking attorney’s fees because it is not the prevailing party and because the stipulation of dismissal does not reserve it that right. Finally, plaintiff argues that it brought and maintained the action in good faith and therefore does not deserve to be penalized by the imposition of sanctions.

Discussion

A. Jurisdiction

1. Defendant errs in arguing that this is a “transitional” case and that the court therefore may entertain an EAJA application under the rationale of Ellis. As Judge Mayer correctly noted in Bregstone v. United States, 4 Cl.Ct. 507, 511 (1984), Ellis only applies where the EAJA application was filed while the case was before the Court of Claims. Nor is this case controlled by Morris Mechanical Enterprises, Inc. v. United States, 728 F.2d 497, 498-99 (Fed.Cir.1984), which involved an EAJA application filed after the case was transferred to the Claims Court from the Court of Claims. In Morris Mechanical Enterprises virtually all of the proceedings in the substantive portion of the case had been completed in the Court of Claims. Id. at 498. By contrast, virtually all proceedings in this case took place in the Claims Court.

Nevertheless, on the basis of the rationale first enunciated by Judge Wood in Bailey v. United States, 1 Cl.Ct. 69, 71-74, vacated in part on other grounds and remanded, 721 F.2d 357 (Fed.Cir.1983), and since adopted by every other judge who has considered the matter, see, e.g., Essex Electro Engineers, Inc. v. United States, 4 Cl.Ct. 463, 465 (1984); Greenberg v. United States, 1 Cl.Ct. 406, 407 (1983), the court concludes that it has jurisdiction to entertain all applications for costs and attorney’s fees under the EAJA.

2. Plaintiff’s argument that an EAJA application cannot be brought on behalf of the United States is refuted by the plain language of the statute. Section 2412 is divided into four principal subsections, three of which — (a), (b) and (d) — provide for payment of costs and/or attorney’s fees in certain circumstances. Subsection (a) provides that costs of litigation may be awarded “to the prevailing party in any [766]*766civil action brought by or against the United States” (emphasis added). An identical provision in subsection (b) governs the award of “reasonable fees and expenses of attorneys;” such fees may be awarded to the extent permitted by the common law or by statute. By significant contrast, subsection (d) provides for the award of fees and other expenses only “to a prevailing party other than the United States” (emphasis added).

The language and structure of these three subsections is open to only one interpretation: Costs and attorney’s fees may be awarded to any prevailing party (including the United States) under subsections (a) and (b), while awards under subsection (d) are limited to prevailing parties other than the United States. The contrasting language of subsections (a) and (b) on the one hand and subsection (d) on the other cannot be construed in any other way.

It is clear, moreover, that the court may award costs and attorney’s fees to the United States quite aside from the EAJA. As a litigant, the government needs no special authorization to seek costs or fees from an opposing party when circumstances warrant such an award. See, e.g., Copeland v. Martinez, 603 F.2d 981, 987 (D.C.Cir.1979), cert. denied, 444 U.S. 1044, 100 S.Ct. 730, 62 L.Ed.2d 729 (1980); Parker v. Boorstin, No. 82-1348, slip op. at 2 (D.D.C. July 11, 1983); see also Moon v. Smith, 523 F.Supp. 1332 (E.D.Va.1981) (federal government may benefit from the bad faith exception to the American Rule). The reverse is not true; monetary awards can be imposed on the United States only when there has been an express waiver of sovereign immunity. United States v. Chemical Foundation, Inc., 272 U.S. 1, 20, 47 S.Ct. 1, 8, 71 L.Ed. 131 (1926) (costs cannot be awarded against the government absent express waiver of sovereign immunity);

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Bluebook (online)
4 Cl. Ct. 762, 20 ERC 1788, 20 ERC (BNA) 1788, 1984 U.S. Claims LEXIS 1457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-paul-fire-marine-insurance-v-united-states-cc-1984.