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4
ATTORNEY FEES
Joyce
v. Department of the Air Force, 83 M.S.P.R. 666 (1999)
Overruling
its recent decision in Joyce v. Department of the Air Force, 74
M.S.P.R. 112, the Board held here that in order to act on the merits of
a case, it must make a preliminary determination of jurisdiction; thus,
attorney fees cannot be awarded in the absence of such a finding, such
as where an agency rescinds its action early in the appeal proceeding.
The Board’s decision, however, reaffirmed its prior holdings that an appellant
may be a prevailing party where, after filing his appeal, the agency voluntarily
granted the relief sought, the administrative judge dismissed the appeal
as moot, and the relief was causally related to the initiation of the appeal.
Santella
& Jech v. Office of Special Counsel & Internal Revenue Service,
86
M.S.P.R. 48 (2000), OPM pet. for reconsideration filed June 13, 2000
This
case is the first to hold that the Office of Special Counsel is "the agency
involved" under 5 U.S.C. § 1204(m)(1), so that it, not the employing
agency, may be required to pay attorney fees. The case also holds that
the section is not retroactive, and applies only to portions of a case
that occurred after October 29, 1994; that "prevailing party" under section
1204(m) is the same as under 5 U.S.C. § 7701(g); and that in applying
the warranted-in-the-interest-of-justice test found in both laws, the "substantially
innocent" category may be applied to 1204(m) cases as it is under chapter
77.
Auker
v. Department of Defense,
86 M.S.P.R. 468 (2000)
The
language of 5 U.S.C. § 1221(g)(2) clearly states that the Board is
without authority to award fees under it, absent a finding that a prohibited
personnel practice was committed; however 5 U.S.C. § 7701(g)(1) covers
all cases that come before the Board, including IRA appeals. Thus, fees
may be awarded in an IRA appeal under 5 U.S.C. § 7701(g)(1) under
circumstances that would not permit an award under 5 U.S.C. § 1221(g).
Thomas
v. United States Postal Service,
86 M.S.P.R. 635 (2000)
This
decision holds, for the first time, that the expense of computer research
is compensable in connection with an application for attorney fees. In
other rulings relative to the reasonableness of an attorney fee award,
the Board found that clerical work is not normally compensated at attorney
rates, but that it may be where it is found to be "indistinguishable from
the legal work," and that the Board may make an award for reasonable and
necessary long distance faxes, but where counsel charged a fixed rate for
sending faxes locally, such charges are not an out-of-pocket expense that
may be awarded.
(The
Board later reaffirmed this ruling, on reconsideration, 87 M.S.P.R. 331
(2000).)
Raney
v. Federal Bureau of Prisons, 222 F.3d 927 (Fed. Cir. 2000) (en
banc)
The
Court held that the Back Pay Act permits, and ethical considerations do
not bar, the award of market-rate fees for work by union attorneys when
such fees are deposited into a separate fund controlled exclusively by
lawyers and the fund is used solely to support litigation on behalf of
employee’s rights.
Sacco
v. Department of Justice, 90 M.S.P.R. 37 (2001)
Nichols
v. Department of Veterans Affairs, 89 M.S.P.R. 554 (2001)
The
appellant must be a prevailing party in order to be entitled to an attorney
fee award. The Board, in accordance with the majority of the circuit courts
that had examined the issue, had previously awarded fees under the catalyst
theory, which allows an award based on a defendant’s voluntary change in
conduct, without judicial sanction. However, in Buckhannon Board and
Care Home, Inc. v. West Virginia Department of Health & Human Resources,
531 U.S. 1004, the Supreme Court rejected that theory as a basis for an
award and held instead that an enforceable judgment on the merits or a
court-ordered consent decree is necessary for "prevailing party" status
and an award of attorney fees. Accordingly, in these appeals, the Board
found that there is no basis for distinguishing "prevailing party" under
5 U.S.C. § 7701(g)(1). It therefore overruled Board cases relying
on the catalyst theory for awarding fees, including Joyce v. Air Force,
83 M.S.P.R. 666, and followed the Supreme Court’s decision. Applying the
new rule to the instant cases, the Board held that because the appellants’
appeals on the merits were dismissed as moot when the agencies unilaterally
rescinded the actions appealed, they were not prevailing parties and were
not entitled to fee awards.
Buckhannon
v WVA, 121 S.Ct. 1835, May 29, 2001. The "catalyst theory" is not
a permissible basis for the award of attorney fees. Instead, fees
may be awarded only to a "prevailing party" which is one who been awarded
some relief by a court. Where a defendant voluntarily changes his
conduct (such as an agency rescinding a personnel action), although perhaps
accomplishing what the plaintiff sought to achieve (such as an employee
seeking reversal of a removal action), such an action does not make the
plaintiff a prevailing party and no fees may be awarded in such a case.
Nichols
v VA, 89 MSPR 554, September 4, 2001. The Board applies Buckhannon
v WVA where prior to completion of hearing, the agency fully rescinded
the employee's suspension, without a decision on the merits. Accordingly,
the employee could not be a "prevailing party" and no attorney fees could
be awarded. Same result in Sacco v Justice, 90 MSPR 225, October
18, 2001.
Santella
Jech v OSC/IRS, 90 MSPR 172, September 21, 2001. Rejecting OPM's
petition for reconsideration, the Board upholds its previous decision awards
attorney fees against the Office of Special Counsel (OSC) in a case where
the two employees were found substantially innocent of the disciplinary
charges brought against them by the OSC. OPM is now arguing before
the Federal Circuit that the Board's decision fails to recognize the unique
role of the OSC and ignores the Congressional intent that OSC vigorously
enforce the Whistleblower Protection Act and not be discouraged from such
enforcement by the potential liability for an assessment of fees.
Pawn
v USDA, SE0752960211A-1, December 12, 2001. The employee was
convicted and incarcerated for violation of a Hawaii state law regarding
improper storage of firearms. He was subsequently removed because
he was unavailable for work and unable to perform his duties, which required
possession of a firearm. When his criminal conviction was overturned
by the Hawaii Supreme Court (based on the failure to suppress improperly
obtained evidence), the Board found that the agency's charges were "inextricably
intertwined" with the criminal conviction and ordered the agency to cancel
the removal action. It then found the employee to be "substantially
innocent" and eligible for an award of attorney fees.
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ATTORNEY FEES
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