Lead Opinion
Thе Steel Company missed reporting deadlines established by the Emergency Planning and Community Right-To-Know Act, 42 U.S.C. §§ 11001-50. Notified of its default by Citizens for a Better Environment (cbe), The Steel Company quickly furnished all required documents. Nonetheless cbe filed suit under the Act’s citizen-suit provision. 42 U.S.C. § 11046(a)(1). The Act authorizes a civil penalty of $25,000 per day per report for tardiness, 42 U.S.C. § 11045(c), and by the complaint’s calculations The Steel Company could have owed more than $537 million. The Steel Company replied that cbe is not entitled to pursue such a claim. A panel of this court rejected this argument without discussing cbe’s standing,
It took three years and $270,000 in attorneys’ fees fоr The Steel Company to convince the federal judiciary that obe was whistling in the dark. Ater the Supreme Court’s decision, we know that this suit never should have been filed. Now The Steel Company wants to be placed in the pecuniary position it would have occupied but for the suit. Accordingly, it moved in the district court for an award of attorneys’ fees under § 11046(f), only to be told “no jurisdiction.”
The district court thought that, if cbe lacks standing to seek civil penalties from The Steel Company, then The Steel Company must lack standing to seek attorneys’ fees from cbe. A court either has jurisdiction or it doesn’t, the district judge
The district court’s conviction that it may not award attorneys’ fees reflects a misunderstanding of what the Supreme Court sаid in this litigation about Article III. The Court concluded that cbe’s prospect of recovering costs and legal fees if it prevailed on the merits could not justify adjudicating the question whether The Steel Company had violated the Act. “[A] plaintiff cannot achieve standing to litigate a substantive issue by bringing suit for the cost of bringing suit.”
Until 1875 federal courts did not award either attorneys’ fees or any other costs in cases that had been dismissed for want of jurisdiction. The reason lay in the common law, not the Constitution, the Court explained in Mansfield, C. & L.M. Ry. v. Swan,
Whenever any action or suit is dismissed in any district court, the Court of International Trade, or the Court of Federal Claims for want of jurisdiction, such court may order the payment of just costs.
The other survives as 28 U.S.C. § 1447(c):
If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded. An order remanding the case may require payment of just costs and any actual expenses, including attorney fees, incurred as a result of the removal.
We applied this statute in Garble v. DaimlerChrysler Corp.,
Willy noted that statutes such as §§ 1919 and 1447(c) permit awards of litigation expenses in suits that federal courts are not authorized to decide on the merits. Cooter & Gell held that Fed.R.Civ.P. 11 permits such awards in cases originally within the court’s jurisdiction but voluntarily dismissed by plaintiffs before defendants seek fees. Then Willy generalized that approach by holding that attorneys’ feеs may be awarded under Rule 11 even if the case never came within the district court’s subject-matter jurisdiction. The district court sought to distinguish these decisions:
[A] court’s authority to award attorney’s fees or sanctions under Rule 11 is drawn not from the Constitution’s Article III jurisdictional requirements, but rather congressional authority under Article I, § 8, cl. 9 to establish laws regulating the conduct of the courts. Willy,503 U.S. at 136 . The imposition of Rule II sanctions therefore is a procedural matter that is not restricted by Article III standing requirements. Here, the procedural concerns regarding abuse of the judicial system present in both Willy and Cooter & Gell are notably absent. As such, the Supreme Court’s Rule 11 jurisprudence is not germane.
This passage confuses two concepts — legislative authority to create rights and remedies (located in Article I), and adjudicative authority (located in Article III). Article I conferred on Congress authority to enact not only 28 U.S.C. §§ 1919 and 1447(c), but also the Rules Enabling Act, 28 U.S.C. §§ 2071-77, which underpins Rule 11. That laws are enacted under Article I does not justify dispensing with standing requirements under Article III; courts possess no more authority to issue advisory opinions (or otherwise exceed their jurisdictiоn) in “procedural matters” than in other matters. Still, a motion seeking an award under any of these rules or statutes is a case or controversy that may be adjudicated to the extent the movant has suffered at its adversary’s hands an injury may be redressed by a decision in its favor. Steel Co.,
The district court drew comfort for its position from decisions of other circuits. Ass’n for Retarded Citizens v. Thorne,
The final appellate decision on which the district court relied does not support its decision. Clibum v. Police Jury Association of Louisiana, Inc.,
In any action under this subchapter (other than an action described in paragraph (2)) by a participant, beneficiary, or fiduciary, the court in its discretion may allow a reasonable attorney’s fee and costs of аction to either party.
29 U.S.C. § 1132(g)(1). The fifth circuit concluded (
The district court’s dismissal of Cli-bum’s claims for lack of subject matter jurisdiction is inconsistent with an award of fees and costs under a statute which requires “any action under this subchap-ter.” In dismissing Cliburn’s suit, the district court determined that there was no ERISA “action.” Furthermore, given that ERISA is inapplicable to Cliburn’s claims, it is inconsistent to conclude that either Cliburn or the Police Jury Association is “a participant, beneficiary, or fiduciary” eligible to invoke § 1132(g)(1). Given that the district court lacked jurisdiction to hear Cliburn’s claims under ERISA, it logically follows that the court lacked jurisdiсtion to entertain the Police Jury Association’s request for fees, costs, and expenses under ERISA.
We have no quarrel with this conclusion, but it does not shed light on the application of 42 U.S.C. §. 11046(f), which provides:
The court, in issuing any final order in any action brought pursuant to this section, may award costs of litigation (including reasonable attorney and expert witness fees) to the prevailing or the substantially prevailing party whenever the court determines such an award is appropriate.
Does this cover The Steel Company’s request? cbe has not advanced an argument along Clibum’s, lines that The Steel Company’s motion for fees did not ask the district court for an award “in issuing any final order in any action brought pursuant to this section”, obe’s action was “brought pursuant to” § 11046;- it could not have been brought under any other law, and the suit’s failure did not make it the less one “brought pursuant to” § 11046. See Steel Co.,
Texas State Teachers Association v. Garland Indepеndent School District,
Sometimes victory on a jurisdictional point merely prolongs litigation. A defendant may persuade the court that the
The alternative of limiting “prevailing” to “prevailing on the merits” has nothing to recommend it under either the text of the statute or the considеrations that lie behind fee-shifting statutes. Although this approach has found favor in some other circuits — see, e.g., Figueroa v. Buccaneer Hotel Inc.,
Plaintiffs who had successfully challenged the constitutionality of a state law sought to recover attorneys’ fees under § 1988 not only from governmental defendants but also from three private intervenors. The district court directed two of the intervenors to reimburse plaintiffs for attorneys’ fees they had incurred as appеllees before the Supreme Court. The Court dismissed an appeal initiated by those intervenors after concluding that they lacked standing. In holding that ap-pellees were prevailing parties in the Supreme Court proceedings, our panel observed that such parties should not be forced to “absorb the costs of defending lawsuits the appealing party lacked proper standing to bring.”
So much for cbe’s first statutory argument. Its second is that The Steel Company is not entitled to fees, even as a “prevailing party,” because § 11046(f) should be read to incorporate the standard of Christiansburg Garment Co. v. EEOC,
Pennsylvania v. Delaware Valley Citizens’ Council,
Misconceived this suit was. Frivolous it was not. A panel of this court held that cbe was entitled to proceed. The Solicitor General supported that decision before the Supreme Court. A suit strong enough to survive an appeal cannot be deemed frivolous, even if all nine Justices thought it unavailing. We recognize that cbe did not win in this court; all it secured was the right to litigate on the merits. (The district court had dismissed its suit for want of jurisdiction.) No one suggests that cbe’s claim was frivolous on the merits, however, for The Steel Company con-cededly filed reports after the statutory deadlines. That’s why The Steel Company needed to pitch its defense on jurisdictional grounds. Thus although we do not agree with the district court’s reasons, we agree with its judgment: The Steel Company’s request for fees was properly denied.
One last matter. The parties have squabbled over the content of The Steel Company’s brief, and a motions judge ordered that cbe’s mоtion to strike passages be taken with the case. The Steel Company depicts itself as a small and struggling manufacturer and asserts that Cbe is a well-heeled environmental juggernaut, while cbe asserts that this is not supported by the record and that it is David to The Steel Company’s Goliath. This dispute is irrelevant to our decision. We have no wish to encourage parties to answer emotional appeals with demands that we scrutinize those passages for details. If cbe feared that an exercise in statutory inter
Affirmed.
Concurrence Opinion
concurring.
This case presents two intertwined, yet independent, issues that we must address: 1) whether the district court had jurisdiction to award attorneys’ fees to The Steel Company; and 2) whether The Steel Company was entitled to attorneys’ fees as a “prevailing party” under the Emergency Planning and Right-To-Know Act, 42 U.S.C. §§ 11001-50. My colleagues present a thoughtful analysis of these two issues. We are not in disagreement with respect to the result or with respect to the basic analysis. I agree that the district court had jurisdiction to award attorneys’ fees, that The Steel Company meets the requirements for a prevailing party under the Act, but that fees are not appropriate in the present action by virtue of the rule set forth in Christiansburg Garment Co. v. EEOC,
In my view, our court’s analysis in Szabo Food Service v. Canteen Corporation,
If one citizen of Illinois files a suit based on state law against another citizen of Illinois, a federal court lacks jurisdiction over the subject matter; so too if a plaintiff files a specious civil rights suit, for an absurd complaint does not even invoke federal question jurisdiction. Yet a court has jurisdiction to determine its jurisdiction and therefore may engage in all the usual judicial acts, even though it has no power to decide the case on the merits. It may supervise discovery, hold a trial, and order the payment of costs at the end. If the complaint is indeed too silly to create subject matter jurisdiction, attorneys’ fees should be an ordinary incident of the award of costs.
Id. at 1077-78 (citations omitted). The second sense of “lack of jurisdiction” was when a court “has lost [its] power to proceed, even though the case is within the federal judicial power.” Id. at 1078. This second jurisdictional category most often comes into play when a court has entered a final judgment; in those circumstances, a court loses its ability to consider the merits of the action, but does “not also lose power to award attorneys’ fees that may be in order as a result of what happened before the final decision.” Id. at 1078. Finally, we discussed “a third ‘jurisdictional’ analogy [that] rests on the case or controversy requirement of Article III.” Id. “When the plaintiff packs up his portfolio and goes home,” we stated, “the case goes home with him.... Courts occasionally sum up the effect of the missing plaintiff by stating ...: ‘It is as if the suit had never been brought.’ A court could not award attorneys’ fees in a case that had never begun.... ” Id. (citations omitted).
Our case law since Szabo Food Service has adhered to these categories. For example, in Board of Education v. Nathan R,
The situation in the present case is more closely akin to the first Szabo Food Service category. Here, there is no question that the district court, this court, and the Supreme Court, had the authority to receive briefs, to hear argument, and to consider the issue of whether there was federal jurisdiction to resolve the merits of the underlying controversy; the courts involved had jurisdiction to determine their jurisdiction. From the authority to determine its jurisdiction necessarily flows the power of the court to award attorneys’ fees based on the actions properly before it. Consequently, the district court had the authority to award fees arising from the actions of the parties in the course of resolving the jurisdictional issue. As my colleagues point out, this court’s decision in Charles v. Daley,
The question remains, however, whether attorneys’ fees are available to The Steel Company. This inquiry requires that we decide whether it has prevailed for purposes of the Act. With respect to this issue, as my colleagues point out, the decision of the Supreme Court in Texas State Teachers Association v. Garland Independent School District,
As my colleagues hold, however, our analysis does not end here. I agree with my colleagues that § 11046(f) incorporates the standard of Christiansburg Garment Co. v. EEOC,
