The Coalition to Protect Puget Sound Habitat v. US Army Corps of Engineers

District Court, W.D. Washington·Decided September 6, 2022·No. 2:16-cv-00950·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON THE COALITION TO PROTECT PUGET Case No. C16-0950RSL SOUND HABITAT, Plaintiff, ATTORNEY FEES AND v. EXPENSES U.S. ARMY CORPS OF ENGINEERS, et al., Defendant. and TAYLOR SHELLFISH COMPANY, INC., Intervenor - Defendant.

This matter comes before the Court on plaintiff’s motion for attorney fees and expenses under the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412(d)(1)(A) (Dkt. # 99). Having reviewed plaintiff’s motion as well as plaintiff’s supplemental memorandum (Dkt. # 117), defendant’s response (Dkt. # 121), plaintiff’s reply (Dkt. # 123), and supporting declarations filed by the parties (Dkt. # 100-103, 118-120, 122), the Court finds oral argument unnecessary and holds that plaintiff is entitled to fees and expenses under the EAJA as enumerated below.

When a party prevails in a civil action against the United States or any of its agencies and the prevailing party properly requests an award of attorney fees and expenses, the EAJA requires the Court to award fees and expenses unless it finds “the position of the United States was substantially justified” or “special circumstances make an award unjust.” 28 U.S.C. § 2412(d)(1-3). To properly request an award of fees and expenses, a party must submit an application to the Court within thirty days of final judgment in the case. 28 U.S.C. § 2412(d)(1)(B). The party must show it has prevailed in the litigation, itemize fees and expenses sought, and specifically allege that the position of the United States was not substantially justified. Id. In addition, the party requesting fees and expenses must meet certain criteria regarding its net worth and, if relevant, its corporate form. 28 U.S.C. § 2412(d)(2)(B). On June 22, 2016, plaintiff filed a civil action against the U.S. Army Corps of Engineers alleging the Corps had violated the National Environmental Policy Act (NEPA), the Clean Water Act (CWA), and the Administrative Procedure Act (APA) when it authorized certain commercial shellfish aquaculture operations in Washington State through a reissuance of Nationwide Permit 48 (NWP 48). Dkt. # 1. The action challenged the version of NWP 48 that was issued on February 21, 2012. On January 6, 2017, the Corps reissued NWP 48. Dkt. # 25. On June 5, 2017, plaintiff filed a supplemental complaint asserting that the previously alleged violations of NEPA, the CWA, and the APA continued with the Corps’ 2017 permit reissue. Id. On October 10, 2019, this Court issued an order finding NWP 48 unlawful in the State of Washington and holding that the Corps had violated NEPA, the CWA, and the APA in its issuance of NWP 48. Dkt. # 61. In reaching its decision, the Court considered both the 2012 and 2017 issuances of NWP 48, specifically noting that the Corps had failed to properly account for “cumulative impacts” when it reissued NWP 48 in 2017 and explaining how those cumulative impacts have roots in the version of NWP 48 that was issued in 2012. Dkt. # 61 at 12-14. The Court then vacated NWP 48 in the State of Washington, commanded the Corps to comply with the CWA and NEPA when processing commercial shellfish aquaculture permits in the state, and instructed the Corps to begin processing shellfish permits on an individual basis “as expeditiously as possible.” Dkt. # 89. The vacation of NWP 48, the command to comply with the CWA and NEPA, and the instruction to begin processing permits on an individual basis were all among the specific relief sought by plaintiff. Dkt. # 25. The Corps filed a notice of appeal to the Ninth Circuit on August 10, 2020. Dkt. # 96. Ten days later, on August 20, 2020, the Corps voluntarily dismissed its Ninth Circuit appeal. Dkt. # 98. Intervenor Taylor Shellfish Company pursued its appeal to the Ninth Circuit, however. Dkt. # 90. On February 11, 2021, the Ninth Circuit issued a memorandum in that appeal affirming the judgment of this Court. Dkt. # 107. The Ninth Circuit stated that “several” of the Corps’ rationales for predicting minimal or insignificant environmental harms from the 2017 version of NWP 48 were “illogical.” Id. On September 18, 2020, less than thirty days after the Corps voluntarily dismissed its Ninth Circuit appeal, plaintiff filed an initial motion seeking fees and expenses under the EAJA. Dkt. # 99. The Corps does not contest that plaintiff is the prevailing party in this dispute. See generally Dkt. # 121. The Corps does not claim any impropriety in the timing or form of plaintiff’s motion for EAJA fees and costs. The Corps does not claim plaintiff has failed to meet the EAJA eligibility requirements for receiving fees and expenses. The Corps does not ask this Court to find that “special circumstances” make an award in this case unjust. What the Corps argues in its response is that there should be no award of fees or costs because the Corps’ position was “substantially justified” or, in the alternative, that the award should be no more than the $334,258.11 the Corps has calculated as being necessary to reimburse plaintiff for reasonable hourly rates and billable hours. Id. at 2. A. The government bears the burden of proving it acted with substantial justification that had a “reasonable basis in both law and fact.” In their briefs, both plaintiff and the Corps cite Pierce v. Underwood for the proposition that “substantially justified” means: “‘[J]ustified in substance or in the main’—that is, justified to a degree that could satisfy a reasonable person.” 487 U.S. 552, 565 (1988). Put another way, the government’s position must have a “reasonable basis in both law and fact.” Id. at 565. The Corps claims this Court may find reasonableness and substantial justification “so long as the government’s arguments are not ‘feeble’ or ‘frivolous’ and have ‘a reasonable basis in law and fact.’” Dkt. # 121 at 4. But the Corps’ pin cite for this proposition reveals no such holding in Pierce v. Underwood, and in fact the Court in Pierce stated: “To be ‘substantially justified’ means, of course, more than merely undeserving of sanctions for frivolousness; that is assuredly not the standard for Government litigation of which a reasonable person would approve.” Pierce, 487 U.S. 552 at 565 (italics added). This Court will thus hold the Corps to a higher standard than merely lacking frivolousness. It is the government’s burden to prove that its position was substantially justified. Love v. Reilly, 924 F.2d 1492, 1495 (9th Cir. 1991). This fact is obscured in the government’s response, which cites Love v. Reilly as supporting the government’s contention that compensation cases under the EAJA place “the burden on the applicant to demonstrate entitlement to such an award.” Dkt. # 121 at 2. In context, the government’s argument appears to suggest that plaintiff has the burden of proof on substantial justification, but as stated above, that is not the case. The government’s pin cite on this issue directs to the following statement in Love: “The party seeking fees has the burden of establishing its eligibility.” That statement is referencing the basic eligibility requirements under § 2412(d)(2)(B) for parties seeking fees—requirements related to, for example, a party’s net worth or corporate form. The relevant rule on the burden of proof for substantial justification comes shortly thereafter, with the Ninth Circuit stati

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