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Keywords

attorneystatutetrialmotionrespondent
attorneystatutetrialmotionrespondent

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Pierce v. Underwood

Facts

Respondents, government subsidized housing tenants, settled their action challenging petitioner federal agency's failure to implement an operating subsidy program and were awarded attorney fees under the Equal Access to Justice Act, 28 U.S.C.S. 2412(d)(1)(A), in excess of the statutory cap. The statute provided for the award of attorney's fees unless the court found that the government's litigating position was substantially justified and allowed for excess fees if the court determined special factors were applicable, such as the limited availability of qualified attorneys for the proceedings involved. The District Court granted respondents' motion for an award of attorney's fees under this statute, concluding that the Secretary's decision not to implement the operating-subsidy program had not been 'substantially justified.'

Respondents, government subsidized housing tenants, settled their action challenging petitioner federal agency's failure to implement an operating subsidy program and were awarded attorney fees under the Equal Access to Justice Act, 28 U.S.C.S. 2412(d)(1)(A), in excess of the statutory cap. The statute provided for the award of attorney's fees unless the court found that the government's litigating position was substantially justified and allowed for excess fees if the court determined special factors were applicable, such as the limited availability of qualified attorneys for the proceedings involved. The District Court granted respondents' motion for an award of attorney's fees under this statute, concluding that the Secretary's decision not to implement the operating-subsidy program had not been 'substantially justified.'

Issue

Whether the Government's position was 'substantially justified' and whether the courts below properly identified 'special factors' justifying an award in excess of the statute's $75-per-hour cap on attorney's fees.

Whether the Government's position was 'substantially justified' and whether the courts below properly identified 'special factors' justifying an award in excess of the statute's $75-per-hour cap on attorney's fees.

Rule

Under the Equal Access to Justice Act, a court shall award attorney's fees to a prevailing party unless the court finds that the position of the United States was substantially justified or that special circumstances make an award unjust.

Under the Equal Access to Justice Act, a court shall award attorney's fees to a prevailing party unless the court finds that the position of the United States was substantially justified or that special circumstances make an award unjust.

Analysis

The Court applied the rule by determining that the District Court had not abused its discretion in concluding that the Secretary's position was not substantially justified. The Court noted that the special factors relied on by the District Court justified increasing the hourly rates of the attorneys but did not justify applying a multiplier to the lodestar amount, leading to a reduction of the award.

The Court applied the rule by determining that the District Court had not abused its discretion in concluding that the Secretary's position was not substantially justified. The Court noted that the special factors relied on by the District Court justified increasing the hourly rates of the attorneys but did not justify applying a multiplier to the lodestar amount, leading to a reduction of the award.

Conclusion

The Court affirmed the judgment in so far as it held that the trial court's award of attorney fees to respondents was not an abuse of discretion but vacated and remanded for further proceedings as to the amount of the award.

The Court affirmed the judgment in so far as it held that the trial court's award of attorney fees to respondents was not an abuse of discretion but vacated and remanded for further proceedings as to the amount of the award.

Who won?

Respondents prevailed in the case because the Court found that the Secretary's position was not substantially justified, and the award of attorney fees was not an abuse of discretion.

Respondents prevailed in the case because the Court found that the Secretary's position was not substantially justified, and the award of attorney fees was not an abuse of discretion.

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