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Keywords

plaintiffdefendantattorneystatuteappealhearingregulationadministrative law
plaintiffdefendantattorneystatuteappealhearingregulationadministrative law

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Smedberg Mach. & Tool, Inc. v. Donovan

Facts

Plaintiffs are two companies which, pursuant to 8 U.S.C. 1182(a)(14), separately sought labor certifications from the United States Department of Labor on behalf of alien employees. Initially the Secretary of Labor denied certification but as a result of administrative review permitted by departmental regulations, administrative law judges overturned the denials and ordered grants of certification. Plaintiffs then sought attorneys fees and costs incurred in connection with their administrative appeals pursuant to the Equal Access of Justice Act (EAJA) provision allowing fee reimbursement to a party prevailing against the government in certain administrative proceedings. In both cases, the administrative law judges denied fees, stating that the EAJA did not apply to labor certification review proceedings since such proceedings are not adversary adjudications.

Plaintiffs are two companies which, pursuant to 8 U.S.C. 1182(a)(14), separately sought labor certifications from the United States Department of Labor on behalf of alien employees. Initially the Secretary of Labor denied certification but as a result of administrative review permitted by departmental regulations, administrative law judges overturned the denials and ordered grants of certification. Plaintiffs then sought attorneys fees and costs incurred in connection with their administrative appeals pursuant to the Equal Access of Justice Act (EAJA) provision allowing fee reimbursement to a party prevailing against the government in certain administrative proceedings. In both cases, the administrative law judges denied fees, stating that the EAJA did not apply to labor certification review proceedings since such proceedings are not adversary adjudications.

Issue

The issue on appeal is whether the proceedings in which plaintiffs prevailed were adversary adjudications under Section 504.

The issue on appeal is whether the proceedings in which plaintiffs prevailed were adversary adjudications under Section 504.

Rule

The EAJA's requirement that a government agency pay attorneys fees and expenses is triggered only when the party seeking to obtain them has been subjected by the agency to an 'adversary adjudication' and has prevailed there.

The EAJA's requirement that a government agency pay attorneys fees and expenses is triggered only when the party seeking to obtain them has been subjected by the agency to an 'adversary adjudication' and has prevailed there.

Analysis

The court agreed with the district judge and with the administrative law judges that the labor certification review proceeding is not an adjudication and therefore do not reach the issue, urged by the government, whether the proceeding was adversarial. The statutory provision regarding labor certification does not provide for any administrative review, and certainly not a hearing review, of the Secretary of Labor's decisions denying or granting the certifications. Therefore, the EAJA does not provide for attorneys fee awards to plaintiffs who prevailed in those proceedings.

The court agreed with the district judge and with the administrative law judges that the labor certification review proceeding is not an adjudication and therefore do not reach the issue, urged by the government, whether the proceeding was adversarial. The statutory provision regarding labor certification does not provide for any administrative review, and certainly not a hearing review, of the Secretary of Labor's decisions denying or granting the certifications. Therefore, the EAJA does not provide for attorneys fee awards to plaintiffs who prevailed in those proceedings.

Conclusion

The court affirmed, holding that attorney fees and costs were not provided by statute if proceedings were not adversary.

The court affirmed, holding that attorney fees and costs were not provided by statute if proceedings were not adversary.

Who won?

Defendants prevailed in the case because the court held that the EAJA did not apply to the labor certification review proceedings, which were not considered adversary adjudications.

Defendants prevailed in the case because the court held that the EAJA did not apply to the labor certification review proceedings, which were not considered adversary adjudications.

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