United States v. $186,416.00 in U.S. Currency
642 F.3d 753
| 9th Cir. | 2011Background
- UMCC prevailed in a CAFRA civil forfeiture, triggering government liability for reasonable attorney fees and costs.
- UMCC sought fee awards, requesting direct payment to its counsel, which the government opposed on amount and payee grounds.
- The panel referred the fee calculation to the Appellate Commissioner, directing use of the lodestar method, and allowed consideration of the attorney-client fee agreement.
- The majority held CAFRA fees are payable to the claimant, not directly to counsel, and that the Appellate Commissioner should determine reasonable fees.
- Dissent would allow district courts to decide on a case-by-case basis whether fees go to the client or the attorney, citing CAFRA’s neutral text.
- The order notes CAFRA’s text does not explicitly designate payee, unlike EAJA or SSA, and discusses Ratliff’s influence on the payee question.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Method to calculate CAFRA fees | UMCC urged lodestar | Government urged non-lodestar or contract-based method | Lodestar method appropriate |
| To whom CAFRA fees should be paid | Fees should be paid directly to attorney | Fees should be paid to claimant | Fees payable to claimant; direct payment to attorney not required |
Key Cases Cited
- Blanchard v. Bergeron, 489 U.S. 87 (Supreme Court 1989) (lodestar framework for fee-shifting statutes)
- Nadarajah v. Holder, 569 F.3d 906 (9th Cir. 2009) (EAJA fees incurred by client; relevance to lodestar)
- Astrue v. Ratliff, 130 S. Ct. 2521 (U.S. 2010) (EAJA payments to prevailing party; informs payee question)
- Evans v. Jeff D., 475 U.S. 717 (Supreme Court 1986) (fees directed to prevailing party under §1988)
- Gilbrook v. City of Westminster, 177 F.3d 839 (9th Cir. 1999) (fee awards to prevailing party absent explicit transfer to counsel)
- Image Technical Serv., Inc. v. Eastman Kodak Co., 136 F.3d 1354 (9th Cir. 1998) (antitrust fee awards go to plaintiff, not counsel)
