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Idaho Conservation League v. Atlanta Gold Corporation
1:11-cv-00161
D. Idaho
Sep 30, 2020
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Background

  • Plaintiffs (Idaho Conservation League and Northwest Environmental Defense Center) sued Atlanta Gold under the Clean Water Act for arsenic and iron NPDES permit violations from a mine adit discharging to Montezuma Creek; prior proceedings and penalties dated back to 2005–2013.
  • In 2012 the court entered an injunction and a $2,000,000 penalty (final judgment later entered and case closed in 2013); compliance efforts involved a zero-valent iron passive treatment system with intermittent exceedances.
  • Plaintiffs moved to reopen the case in 2016 and sought civil contempt in 2017 after numerous documented arsenic and iron exceedances; the court held a two-day evidentiary hearing in April 2017.
  • The court found Atlanta Gold in civil contempt, ordered additional penalties (with a contempt amount later reduced from $251,000 to $125,500 after partial remediation), and retained jurisdiction.
  • Plaintiffs moved for attorney fees and litigation costs under 33 U.S.C. § 1365(d); Atlanta Gold did not oppose the fee motion, and Plaintiffs moved for default judgment on the fee request.
  • The court denied default-judgment relief, independently reviewed reasonableness of the requested fees and costs, and awarded a total of $129,465.76 (breakdown: $8,527.26 expert; $47,810.00 Lucas; $64,407.50 Hurlbutt; $8,721.00 Hawley).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether default judgment should be entered on the fee motion Atlanta Gold’s failure to respond = consent under local rule; entry of default judgment for full requested amount No response / not presented Denied — court must independently assess reasonableness of fees under §1365(d) before entering judgment
Whether Plaintiffs are prevailing or substantially prevailing parties for fee eligibility Plaintiffs secured reopening, a Second Injunction, penalties and contempt relief No opposition presented Granted — Plaintiffs are prevailing/substantially prevailing parties under §1365(d)
Whether a fee award is appropriate under §1365(d) Fee award appropriate absent special circumstances; fees should be awarded No opposition presented Granted — no special circumstances made award unjust; awards "should be the rule rather than the exception"
Reasonableness of specific requested fees (expert and attorneys) Seek $130,883.26 itemized (expert Kuipers; attorneys Lucas, Hurlbutt, Hawley) No opposition presented to specifics Awarded in part: full award to Kuipers, Lucas, Hawley; Hurlbutt reduced (1.8 hrs disallowed; 9 hrs billed at 50%); total $129,465.76 awarded

Key Cases Cited

  • Hensley v. Eckerhart, 461 U.S. 424 (1983) (lodestar method; degree of success controls fee reasonableness)
  • Camacho v. Bridgeport Fin., Inc., 523 F.3d 973 (9th Cir. 2008) (lodestar and adjustments guidance)
  • Ferland v. Conrad Credit Corp., 244 F.3d 1145 (9th Cir. 2001) (factors beyond lodestar may justify adjustment)
  • Farrar v. Hobby, 506 U.S. 103 (1992) (degree of success is critical in fee awards)
  • Saint John's Organic Farm v. Gem Cnty. Mosquito Abatement Dist., 574 F.3d 1054 (9th Cir. 2009) (two-step test: prevailing party and appropriateness of fee under §1365(d))
  • Lau Ah Yew v. Dulles, 236 F.2d 415 (9th Cir. 1956) (district court discretion on default judgment)
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Case Details

Case Name: Idaho Conservation League v. Atlanta Gold Corporation
Court Name: District Court, D. Idaho
Date Published: Sep 30, 2020
Docket Number: 1:11-cv-00161
Court Abbreviation: D. Idaho