603 F.2d 981 | D.C. Cir. | 1979
Opinion for the Court filed by WILKEY, Circuit Judge.
The sole question in this appeal is whether the District Court may award attorneys’ fees to the United States in a case where it has been sued “vexatiously and in bad faith” under Title VII of the Civil Rights Act of 1964. Appellant maintains that such an award is barred by the plain language of the provision for attorneys’ fees contained in the Act. We disagree. In light of the Act’s legislative history and underlying purposes, we think that it left undisturbed the equitable principles which historically have permitted a court discretion to award attorneys’ fees in circumstances like those of this case. Accordingly, we affirm the judgment of the district court.
I.FACTS
The facts of this case, as they were found by the trial court, are not disputed and may be recounted briefly. ■ Plaintiff-appellant, Ms. Copeland, is a black woman employed by the Community Services Administration. Since 1974 she has worked as a program specialist of grade GS-11 in the Office of Human Rights, previously she held other positions with the CSA and its predecessor agency, the Office of Equal Opportunity. Plaintiff’s two most recent promotions were the result of filing grievances unrelated to racial or sex discrimination.
From April 1975 through December 1976 plaintiff’s supervisor was Carlos Ruiz, the Associate Director for Human Rights at CSA, against whom plaintiff filed unsuccessfully some nine grievances and Equal Employment Opportunity (EEO) complaints. A complaint filed with the CSA on 27 June 1975 is the subject of this suit. It alleged, inter alia, that plaintiff was denied career ladder promotions and merit promotions, was denied the opportunity for training, and was harassed by her supervisors, all because of her race and sex.
After a trial the district court found that plaintiff had “failed _ to establish even a prima facie case of discrimination.”
Finding, moreover, that the plaintiff had “acted vexatiously, maliciously, and in bad faith”
The district court relied, in making the award, on traditional equitable principles, “separate and apart from [Title VII],”
II. ANALYSIS
A. The American Rule and Its Exception in Cases of Bad Faith
Although it is the general rule in the United States that in the absence of a statute
The rationale for “fee-shifting” in instances of bad faith is essentially punitive.
In the instant case it is not disputed that plaintiff acted in bad faith in bringing her Title VII suit, nor is it disputed that factually this case falls well within the equitable exception permitting an award of fees when compelled by “overriding considerations of justice.”
Plaintiff contends that Congress in this case has foreclosed an award of fees to the United States “under any circumstances.”
In any action or proceeding under this subchapter the court, in its discretion, may allow the prevailing party, other than the [Equal Employment Opportunity] Commission or the United States, a reasonable attorney’s fee as part of the costs, and the Commission and the United States shall be liable for costs the same as a private person.27
Title VII is thus one of numerous statutes “granting or protecting various federal rights”
B. Congressional Intent Governing § 706(k)
The parties have fashioned predictably differing arguments from four sorts of evidence of what Congress may be supposed to have intended. We review in turn (1) the language of § 706(k), (2) its legislative history and that of comparable provisions, (3) probable inferences from the structure of the Civil Rights Act of 1964, and (4) the apparent purposes underlying the fee provision.
1. Statutory Language
Until Title VII was amended by the Equal Employment Opportunity Act of 1972, it did not permit employment discrimination suits against the federal government. Consequently, prior to the amendments, the United States (or the Equal Employment Opportunity Commission) could appear in a Title VII suit only as a plaintiff, bringing or intervening in a suit on behalf of a private or nonfederal government employee.
Federal employment discrimination was proscribed by § 717 added to the Civil Rights Act of 1964
Plaintiff, somewhat indifferent to the manner in which the various provisions were accreted, argues that their intended operation is apparent. Plaintiff supposes initially that the United States was prevented by § 706(k) from recovering fees as a plaintiff “under any circumstances.” From this plaintiff concludes that § 706(k), made applicable to suits against the federal government by § 717(d), likewise forecloses an award on behalf of the United States as a defendant in all cases. We have already noted that plaintiff’s construction is linguistically plausible. It is not, however, the only sensible reading of the statute; nor is it the one we suppose most harmonious with the purposes of the Act.
The government, of course, takes a quite different position. It suggests that the language prohibiting awards to the United States may apply only where the government is a plaintiff, the circumstance contemplated when the language was eom
We think the excepting language, supposing it applicable to the federal government as a defendant, was meant to exclude the United States only from the statutory allowance of fees, governed by the expansive “prevailing party” standard, and to leave undisturbed the narrow equitable exception in cases of bad faith.
2. Legislative History
The parties are in agreement that pertinent legislative history is sparse and fairly unenlightening. Somewhat relevant is a colloquy between Senator Dominick and Senator Javits in the course of debate on the 1972 amendments. Senator Dominick had submitted an amendment to the pending Senate bill which, inter alia, would have struck the provision which became § 717(d), incorporating § 706(k). Senator Javits, in turn, introduced an amendment striking that portion of the Dominick amendment, which Senator Dominick accepted.
More helpful to plaintiff’s argument are portions of the legislative history of the Civil Rights Attorney’s Fees Awards Act of 1976.
Although the cited passages from the legislative history of the 1976 Act deserve some weight “ ‘as a secondarily authoritative expression of expert opinion,’ ”
3. Inferences from the Structure of Title VII
Plaintiff advances a second, somewhat different theory of preemption relying on the Supreme Court’s decision in Fieischmann Distilling Corp. v. Maier Brewing Co.
Plaintiff’s reliance on Fieischmann appears somewhat curious. At issue in Fieischmann was the judge-made rule permitting an award of attorneys’ fees upon a showing that a trademark had been infringed deliberately or willfully. The practice, though supported by some judicial authority, was not among the customary exceptions to the American rule. The Supreme Court held merely that it would not find an implied exception under a statute which, containing no attorneys’ fees provision whatsoever, otherwise exhaustively prescribed the intended relief. The instant controversy is quite different. We are required to decide not whether to create a novel exception, but rather whether Congress intended to abrogate a thoroughly settled one. Setting to one side the effect of § 706(k), we are most reluctant to find that Congress has by implication eliminated sound preexisting grounds for an award of attorneys’ fees.
The Supreme Court’s recent opinion in Christianburg Garment Co. v. EEOC confirms our view that, at least apart from the prohibition which plaintiff finds in the language of § 706(k), the remedial scheme of Title VII did not preempt the customary exceptions to the American rule. There the Court said:
It seems clear, in short, that in enacting § 706(k) Congress did not intend to permit the award of attorney’s fees to a*408 prevailing defendant only in a situation where the plaintiff was motivated by bad faith in bringing the action. As pointed out in Piggie Park, [88 S.Ct. 964, 19 L.Ed.2d 1263, 390 U.S. 400 (1968)], if that had been the intent of Congress, no statutory provision would have been necessary, for it has long been established that even under the American commonlaw rule attorney’s fees may be awarded against a party who has proceeded in bad faith.57
Thus plaintiff’s preemption argument derives no support from Fleischmann, and we are once again thrown back upon the language of § 706(k), which we find inconclusive.
4. The Purposes of § 706(k)
Finally, we believe an award of attorneys’ fees in this case is wholly consistent with the purposes of § 706(k). The Supreme Court had occasion in Christianburg to review those purposes, which are vaguely disclosed by what little history there is from 1964. It said:
The only specific reference to § 706(k) in the legislative debates indicates that the fee provision was included to “make it easier for a plaintiff of limited means to bring a meritorious suit.” [58 1 During the Senate floor discussions of the almost identical attorney’s fee provision of Title II, however, several Senators explained that its allowance of awards to defendants would serve “to deter the bringing of lawsuits without foundation,”[59 J “to discourage frivolous suits,”[60 ] and “to diminish the likelihood of unjustified suits being brought.”[61 ] If anything can be gleaned from these fragments of legislative history, it is that while Congress wanted to clear the way for suits to be brought under the Act, it also wanted to protect defendants from burdensome litigation having no legal or factual basis.62
Of course, the Court in Christianburg was not construing the language which is here alleged to foreclose a recovery by the government. Christianburg dealt with the content of the “prevailing party” standard whose purposes are less directly relevant to this case than the purposes, were they discernible, of the alleged exception for the federal government. Still, inasmuch as the language and history of the exception are inconclusive, it is sensible that the policies framing the section generally should inform as well the construction of its exceptions.
The possibility of tension between the purposes described in Christianburg is apparent. The policy question in this case is, simply stated, whether the social benefits of deterring vexatious suits against the government outweigh the social costs arising from the risk that some meritorious suits will be discouraged as well. Plaintiff argues that the Congress in 1972, acutely aware of both the pervasiveness of discrimination in federal employment and inadequacy of existing remedies, could not have intended to create the “deterrent of the prospect of liability for fees if the employee loses.”
We think plaintiff’s arguments are largely overdrawn. The alleged chill on poten
Of course, a court must still be wary of indulging post hoc characterizations which neglect the apparent prospects of a claim before trial. The cautionary language of the Court in Christianburg pertains a fortiori in such cases as this:
In applying these criteria, it is important that a district court resist the understandable temptation to engage in post hoc reasoning by concluding that, because a plaintiff did not ultimately prevail, his action must have been unreasonable or without foundation. This kind of hindsight logic could discourage all but the most airtight claims, for seldom can a prospective plaintiff be sure of ultimate success. No matter how honest one’s belief that he has been the victim of discrimination, no matter how meritorious one’s claim may appear at the outset, the course of litigation is rarely predictable. Decisive facts may not emerge until discovery or trial. The law may change or clarify in the midst of litigation. Even when the law or the facts appear questionable or unfavorable at the outset, a party may have an entirely reasonable ground for bringing suit.66
Thus we contemplate that courts will be appropriately circumspect in finding a party to have acted in bad faith. We doubt that such a finding may be supported without some proof of malice entirely apart from inferences arising from the possibly frivolous character of a particular claim. Only in this manner would we assure a sensible distinction between the contents of the equitable and statutory exceptions to the American rule. If, as seems probable, Congress chose to exclude the United States from the statutory “prevailing party” recovery in all cases, we are obliged to observe closely such a distinction.
Satisfied, then, that a recovery by the United States in this case will not embarrass the policy of enforcement, we are naturally more certain that it will help to discourage those few suits whose only motivation is harassment. The Court recognized in Christianburg that though Congress intended that individuals would fully vindicate the antidiscrimination policy of Title VII, still “it is equally certain that Congress entrusted the ultimate effectuation of that policy to the adversary judicial process.”
It is the need to preserve the integrity of the judicial process which ultimately, in the face of inconclusive statutory language and legislative history, convinces us that Congress would not have wished to foreclose recovery here. Litigation brought merely to harass is a wholly unredeemed burden and affront to the judiciary. While its unfairness when the defendant is the United States is somewhat more diffuse than the imposition on a private defendant in the same circumstances, it is not more sufferable." We think it unlikely, in light of the purposes of the “bad faith” exception,
Affirmed.
. Judge Pratt’s opinion is reported at 435 F.Supp. 1178 (D.D.C.1977).
. Id. at 1181.
. Id. at 1179.
.Id. at 1181.
. Id.
. Id. at 1180.
. Id.
. Id. at 1180-81.
. Id.
. Id. at 1181 n. 3.
. Brief for Plaintiff at 4.
. See note 28 infra.
. See, e. g., Fleischmann Distilling Corp. v. Maier Brewing Co., 386 U.S. 714, 717, 87 S.Ct. 1404, 18 L.Ed.2d 475 (1967).
. See Christianburg Garment Co. v. EEOC, 434 U.S. 412, 415, 98 S.Ct. 694, 54 L.Ed.2d 648 (1978); Alyeska Pipeline Serv. Co. v. Wilderness Soc’y, 421 U.S. 240, 257, 95 S.Ct. 1612, 44 L.Ed.2d 141 (1975).
. See Alyeska, 421 U.S. at 257-58, 95 S.Ct. 1612; Hall v. Cole, 412 U.S. 1, 5-6, 93 S.Ct. 1943, 36 L.Ed.2d 702 (1973); Mills v. Electric Auto-Lite Co., 396 U.S. 375, 391-92, 90 S.Ct. 616, 24 L.Ed.2d 593 (1970); Sprague v. Ticonic Nat’l Bank, 307 U.S. 161, 59 S.Ct. 777, 83 L.Ed. 1184 (1939); Trustees v. Greenough, 105 U.S. 527, 26 L.Ed. 1157 (1882).
. Alyeska, 421 U.S. at 258, 95 S.Ct. at 1622 (quoting Fleischmann Distilling Corp., 386 U.S. at 718, 87 S.Ct. 1404 (citing Toledo Scale Co. v. Computing Scale Co., 261 U.S. 399, 426-28, 43 S.Ct. 458, 67 L.Ed. 719 (1923))).
. Alyeska, 421 U.S. at 258-59, 95 S.Ct. at 1622 (quoting F. D. Rich Co. v. United States ex rel. Industrial Lumber Co., 417 U.S. 116, 129, 94 S.Ct. 2157, 40 L.Ed.2d 703 (1974); Newman v. Piggie Park Enterprises, Inc., 390 U.S. 400, 402 n.4, 88 S.Ct. 964, 19 L.Ed.2d 1263 (1968); Vaughan v. Atkinson, 369 U.S. 527, 82 S.Ct. 997, 8 L.Ed.2d 88 (1962); Bell v. School Bd., 321 F.2d 494 (4th Cir. 1963); Rolax v. Atlantic Coast Line R., 186 F.2d 473 (4th Cir. 1951); 6 J. Moore, Federal Practice, * 54.77(2), at 1709 (2d ed. 1972). See generally Dawson, Lawyers and Involuntary Clients in Public Interest Litigation, 88 Harv.L.Rev. 849, 889-95 (1975).
. Hall v. Cole, 412 U.S. at 5, 93 S.Ct. 1943.
. See Dawson, supra note 17, at 890 nn. 155-56 (citing cases).
. Fleischmann Corp., 386 U.S. at 718, 87 S.Ct. 1404.
. Hall v. Cole, 412 U.S. at 9, 93 S.Ct. at 1948.
. Alyeska, 421 U.S. at 260, 95 S.Ct. at 1623.
. Id. at 262, 95 S.Ct. at 1624.
. Brief for Plaintiff at 6.
. 42 U.S.C. § 2000e-5(k) (1976).
. Equal Employment Opportunity Act of 1972, Pub.L. No. 92-261, sec. 11, § 717, 86 Stat. 103, 111, 42 U.S.C. § 2000e-16(d) (1976).
. 42 U.S.C. § 2000e-5(k) (1976).
. Alyeska, 421 U.S. at 260 & nn. 33-35, 95 S.Ct. at 1623 (collecting statutes); Christianburg Garment Co., 434 U.S. at 415-16 nn. 5-7, 98 S.Ct. 694 (collecting statutes).
. Id. at 417, 98 S.Ct. at 698 (footnote omitted); Albemarle Paper Co. v. Moody, 422 U.S. 405, 415, 95 S.Ct. 2362, 45 L.Ed.2d 280 (1975). See also Northcross v. Board of Educ., 412 U.S. 427, 428, 93 S.Ct. 2201, 37 L.Ed.2d 48 (1973).
. Christianburg Garment Co., 434 U.S. at 421, 98 S.Ct. at 700.
. 42 U.S.C. § 2000e-5(k) (1976) (emphasis added).
. See notes 40-48 and accompanying text infra.
. Christianburg Garment Co., 434 U.S. at 420, 98 S.Ct. at 699 (quoting remarks of Senator Lausche, 110 Cong.Rec. 13668 (1964)).
. See Civil Rights Act of 1964, Pub.L. No. 88-352, tit. VII, §§ 706, 707, 78 Stat. 259, 261 (current version at 42 U.S.C. §§ 2000e-5, 2000e-6 (1976)).
. 42 U.S.C. § 2000e-16 (1976).
. See note 26 supra.
. 42 U.S.C. § 2000e-16(c) (1976).
. 42 U.S.C. § 2000e-16(d) (1976).
. Although it might have been rational for Congress in 1972 to have concluded that the United States as a defendant should be entitled to its attorneys’ fees in the same manner as other defendants, it is improbable that it would have chosen to do so through the language of §§ 717(d) and 706(k). Section 717(d) incorporates § 706(k) “as applicable” to suits against the federal government. It is undisputed that § 706(k) applies to such suits at least insofar as it permits awards to prevailing plaintiffs. We think it fairly implausible that Congress intended through § 717(d) to incorporate all of § 706(k) save for the phrase “other than the . United States.” Rather, a more sensible reading of the sections is that when the federal government is a defendant, it is a “party” within § 706(k) and as such is excluded from the statutory recovery of fees just as it is as a plaintiff. We are especially hesitant to reach a contrary construction which, having no warrant in the text, is not compelled by an unambiguous Congressional purpose. No such purpose is apparent.
Finally, it may be argued that if the same standard applies to the federal government, whether a plaintiff or defendant, it should in both cases preclude recovery on equitable grounds. Although in some circumstances we might conclude that a statutory provision for attorneys’ fees had preempted preexisting equitable grounds, see Christianburg Garment Co., 434 U.S. at 419 n. 13, 98 S.Ct. 694; cf. Byram Concretanks, Inc. v. Warren Concrete Prods. Co., 374 F.2d 649, 651 (3d Cir. 1967), we do not think that is this case, see 195 U.S.App.D.C. pp.-,-, 603 F.2d pp. 989-990 infra.
. Senator Javits, offering the amendment to strike, said:
If you refer to those provisions, insofar as they are applicable, you find that the main point is that where the complainant is suing in court, you have arrived at the stage of the proceeding where he has that remedy, and in such circumstances as the court may deem just, the court may appoint an attorney for the complainant and authorize the commencement of the action without the payment of fees, costs, or security.
Mr. President, that is a very important right for the individual, just as it is a very important right for a Government employee, for the individuals involved are not, in the main, high salaried, in that those who would be likely to sue in these equal employment opportunity cases are fairly modest people.
So I see no reason, Mr. President, why in the one case, to wit, that of the normal complainant who is not a Government employee with a remedy in court, that complainant shall be the beneficiary of a court-appointed lawyer, and not have to pay these costs or securities, and why this provision should be stricken out when it comes to a Federal Government employee who has to sue and is also a person, because that is the generality of the cases, of modest means.
So the motion which I make is to strike out the provision of the Dominick amendment which would withdraw that opportunity from a Government employee. I do not see how we can very well make that distinction.
118 Cong.Reg. at 954 (1972).
Senator Dominick accepted the amendment and stated:
Mr. President, I want to say for the record that this particular amendment language was*406 included, as the specific provisions of the bill deal only with Federal employees for whom we had a different procedure. They go through their own agencies and then they have the right as a Federal employee to go to the civil service board or to go through the Federal court system. The amendment to strike the language was included because the language to be struck was thought to be inappropriate to the specialized grievance procedures adopted in committee for Federal employees. A closer reading of sec. 706(g) through (w) [the provisions that would have been stricken by the proposed Dominick amendment] does indicate that language for providing attorney’s fees and waiving court costs are applicable.
Therefore, I have no objection to the Senator’s amendment, and if he would want to withdraw his yea and nay request, that would be fine with me, and we can accept the amendment.
118 Cong.Rec. 956 (1972).
. 182 U.S.App.D.C. 322, 337-338, 561 F.2d 320, 335-36 (1977).
. For a review of such legislative history as exists, see Parker v. Califano, 182 U.S.App.D.C. at 335-341, 561 F.2d at 333-39.
. Pub.L. No. 94-559, 90 Stat. 2641, 42 U.S.C. § 1988.
. The Act permits an award of attorney’s fees to the “prevailing party” in actions brought under seven specific sections of the United States Code: 42 U.S.C. §§ 1981, 1982, 1983, 1985, 1986 & 2000d et seq.; and 20 U.S.C. § 1681 et seq. See 42 U.S.C. § 1988 (1976); H.Rep. No. 94-1558, 94th Cong., 2d Sess. 4 (1976).
. Civil Rights Act of 1964, Pub.L. No. 88-352, tit. VI, 78 Stat. 252, 42 U.S.C. § 2000d et seq. (1976); Adams v. Richardson, 156 U.S.App.D.C. 267, 480 F.2d 1159 (1973).
. S.Rep. No. 94-1011, 94th Cong., 2d Sess. 2, 4 (1976), U.S.Code Cong. & Admin.News 1976, pp. 5908, 5912.
. 122 Cong.Rec. H12152 (daily ed. 1 Oct. 1976) (remarks of Congressman McClory). See also id. at H12155 (remarks of Congressman Drinan).
. Parker v. Califano, 182 U.S.App.D.C. at 342, 561 F.2d at 339 (quoting Bobsee Corp. v. United States, 411 F.2d 231, 237 n. 18 (5th Cir. 1969)).
. 386 U.S. 714, 87 S.Ct. 1404, 18 L.Ed.2d 475 (1967).
. 15 U.S.C. § 1117 (1976).
. Fieischmann Corp., 386 U.S. at 719, 721, 87 S.Ct. at 1409.
. 425 U.S. 820, 833, 96 S.Ct. 1961, 48 L.Ed.2d 402 (1976).
. Id. at 829, 96 S.Ct. at 1968.
. Our reluctance is akin to the presumption against construing statutes to have abrogated by implication common law rights. See, e. g., Isbrandtsen Co. v. Johnson, 343 U.S. 779, 783, 72 S.Ct. 1011, 96 L.Ed. 1294 (1952); St. Regis Paper Co. v. United States, 368 U.S. 208, 218, 82 S.Ct. 289, 7 L.Ed.2d 240 (1961). See generally. 3 J. Sutherland, Statutes and Statutory Construction § 61.01, at 41-42 (4th ed. Sands, ed. 1974).
. 42 U.S.C. § 2000e-5(g) (1976).
. See also Hall v. Cole, 412 U.S. at 10, 93 S.Ct. 1943; Mills v. Electric Auto-Lite, 396 U.S. at 391, 90 S.Ct. 616.
. 434 U.S. at 419, 98 S.Ct. at 699.
. Remarks of Senator Humphrey, 110 Cong. Rec.'12724 (1964).
. Remarks of Senator Lausche, id., at 13668.
. Remarks of Senator Pastore, id., at 14214.
. Remarks of Senator Humphrey, id., at 6534.
. Christianburg Garment Co., 434 U.S. at 420, 98 S.Ct. at 699-700 (original notes renumbered and reproduced as notes 58-61 supra).
. Brief for Plaintiff at 21.
. Compare 42 U.S.C. § 2000e-16(c) with 42 U.S.C. § 2000e-5(f).
. Christianburg Garment Co., 434 U.S. at 421, 98 S.Ct. 694.
. 434 U.S. at 421-22, 98 S.Ct. at 700.
. Id. at 419, 98 S.Ct. at 699.
. We are somewhat persuaded in our view by the analogous grounds for recovery of fees contained in Federal Rule of Civil Procedure 37. Rule 37 authorizes a court in certain circumstances to assess attorneys’ fees against a party who has abused the discovery process. The theory is essentially the same as that in this case. Fair and liberal discovery is elementary to civil litigation. To maintain the process, the award of fees operates as a sanction, deterring abusive practices and incidentally compensating the aggrieved party for unnecessary costs.
. Sufficient abuse of the judicial process could overwhelm the courts and destroy the judicial system as an effective branch of government. This, and any discernible degree thereof, such as the bad faith litigation found here, the courts have a constitutional duty to prevent. By our interpretation of the statute involved we have found here no intent of Congress to permit any abuse of the judicial process.