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What is a Judge to Do When Plain Meaning and Precedent Clash?

By Eric L. Lipman

Two Fridays ago, a panel of the U.S. Court of Appeals for the Eighth Circuit handed down an interesting opinion on the recovery of attorneys fees under the Equal Access to Justice Act (EAJA).

Catherine G. Ratliff, an attorney in Hot Springs, South Dakota, successfully represented two claimants in their efforts to receive benefits from the Social Security Administration. Ratcliff then sought the award of fees and costs under the EAJA. The court granted the motion but reduced the overall amount of the recovery by setting off the amount of other debts that the claimants owed to the federal government. As the District Court reasoned, the EAJA provided for the recovery of fees by ?prevailing parties? ? not their attorneys. As against those parties, the amount of any recovery was subject to setoffs.

Reversing, the appellate panel held that ?that the attorney?s fees in this case are awarded to the parties? attorney.?

Noteworthy, however, is that none of the three panelists seemed to believe that this was a result that was provided for under the Act. Wrote Circuit Judge Michael J. Malloy: ?Were we deciding this case in the first instance, we may well agree with our sister circuits and be persuaded by a literal interpretation of the EAJA, providing that ?a court may award reasonable fees and expenses of attorneys . . . to the prevailing party.? However, case law from this circuit compels a contrary conclusion.?

Concurring in the judgment, Circuit Judge Raymond W. Gruender, made the point even more sharply: "I agree with the Court that [the earlier decision in Curtis v. City of Des Moines] compels the conclusion that the attorney?s fees awarded pursuant to the EAJA are awarded to the attorney, not her clients ... [but] ... our conclusion that EAJA attorney?s fees are awarded to a prevailing party?s attorney also contradicts the plain language of the EAJA."

The panel?s complete analysis is accessible here.

Full post as published by Within the Scope on September 14, 2008 (boomark / email).