Equal Access to Justice Act

Astrue v. Ratliff

Issues

Whether, under the Equal Access to Justice Act, fee awards are payable to attorneys or to their clients.

 

Petitioner, Michael J. Astrue (“Astrue”), argues that an award of fees and other expenses under the Equal Access to Justice Act (“EAJA”), 28 U.S.C. § 2412(d), is payable to the prevailing party in Social Security cases. Respondent, Catherine G. Ratliff (“Ratliff”), counters that an award of attorneys’ fees should go to the prevailing party’s attorney as compensation for services rendered. Astrue asserts that an award of attorneys’ fees is subject to an administrative offset to satisfy the prevailing party’s debt, if any, to the United States. Ratliff argues that because the award belongs to the party’s attorney and not to the party itself, the award of attorneys’ fees cannot be subject to an offset for a debt that is not his or her own. The Eighth Circuit held that Congress intended attorneys’ fees awarded under EAJA to go to the prevailing party’s attorney and not to the prevailing party. The Supreme Court must resolve whether an award of attorneys’ fees under EAJA is payable to the prevailing party rather than the party’s attorney and, therefore, is subject to an administrative offset for a pre-existing debt owed by the prevailing party to the federal government.

Questions as Framed for the Court by the Parties

Whether an "award of fees and other expenses" under the Equal Access to Justice Act, 28 U.S.C. 2412(d), is payable to the "prevailing party" rather than to the prevailing party's attorney, and therefore is subject to an offset for a pre-existing debt owed by the prevailing party to the United States.

Respondent, Catherine G. Ratliff (“Ratliff”), an attorney, successfully represented two claimants seeking benefits from the Social Security Administration. See Ratliff v. Astrue, 540 F.3d 800, 801 (8th Cir. 2008). Ratliff then moved for an award of fees and costs under the Equal Access to Justice Act (“EAJA”), 28 U.S.C.

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Richlin Security Service Co. v. Chertoff

Issues

Whether prevailing parties in actions brought against the United States under the Equal Access to Justice Act are entitled to receive reimbursement for paralegal services at their market value, or only at the cost to legal counsel for whom the services were provided.

 

Richlin Security Service Company entered into two contracts with the Immigration and Naturalization Service, now part of the Department of Homeland Security, to provide security guard services for detainees being held at the Los Angeles International Airport. Due to a mutual mistake, Richlin's employees were misclassified as "Guard I" instead of "Guard II" in the contracts, which resulted in their underpayment. Richlin litigated this case four times before the Department of Transportation Contract Appeals Board, which awarded Richlin payment for worker's compensation premiums, payroll taxes, and wages. Richlin then applied pursuant to the Equal Access to Justice Act for reimbursement of attorney fees, expenses and costs associated with the underlying litigation. Although Richlin was fully compensated for attorney's fees, the Board only awarded Richlin reimbursement of paralegal services at cost rather than the amount billed, resulting in a $40,000 deficiency in recovery. Richlin appealed the decision to the United States Court of Appeals for the Federal Circuit, which affirmed the Board's decision. Richlin argues that paralegal services should be reimbursed under "attorney's fees" because paralegals perform substantive work which contributes to attorney work product. The United States contends that Congress intended for paralegal services to be considered "expenses" under the EAJA, which are reimbursed at cost. The outcome of this case will impact citizens and organizations that rely on the EAJA to bring claims against the government for vindication of rights.

Questions as Framed for the Court by the Parties

Under the Equal Access to Justice Act (EAJA), 5 U.S.C. § 504(a)(l) and 28 U.S.C. § 2412(d)(1)(A), may a prevailing party be awarded attorney fees for paralegal services at the market rate for such services, as four circuits have held, or does EAJA limit reimbursement for paralegal services to cost only, as the Federal Circuit panel majority below held?

In 1990 and 1991, Richlin Security Service Company entered into fixed-price contracts with the Immigration and Naturalization Service to provide security guard services for detainees at the Los Angeles International Airport. Richlin Sec. Svc. Co. v. Chertoff, 472 F.3d 1370, 1371-72 (Fed. Cir. 2006).

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