Doe v. ChaoDoe v. Chao
- Reporters:
- ,
- Before:
- Williams, Luttig, Michael
COUNSEL
ARGUED: Anthony Alan Yang, UNITED STATES DEPARTMENT OF JUSTICE, Civil Division, Appellate Section, Washington, D.C.,
OPINION
WILLIAMS, Circuit Judge:
In 1997, appellee, Buck Doe, brought an action against appellant, the United States Secretary of Labor (the Government), seeking damages under the Privacy Act for the wrongful disclosure of his Social Security number. We previously held — based on a reading of the Act’s text — that a party must show some actual damages in order to recover $1,000 in statutory damages. That decision was affirmed by the United States Supreme Court and we remanded to the district court, where the court granted Doe’s motion for attorney fees and costs. Neither the Supreme Court’s opinion nor our original opinion addressed the separate question presented today, which is whether a person who cannot show actual damages under the Act may still recover costs and reasonable attorney fees. We now affirm the district court’s conclusion that Doe is entitled to costs and reasonable attorney fees even though he suffered no actual damages. Because, however, we conclude that the district court did not properly calculate the amount of attorney fees, we reverse the district court’s judgment and remand the case for further proceedings in light of this opinion.
I.
Because this is the second time this case is before us, we only briefly recite the pertinent facts and procedural history.
Like most applicants for benefits under the Black Lung Benefits Act, Doe provided his Social Security number to the Department of Labor’s Office of Workers’ Compensation Programs. The Govern-
Robert Doe, who was also a Black Lung benefit claimant, filed suit against the Secretary of Labor on February 13, 1997. The Government promptly recognized that in reproducing Social Security numbers in such a way, it exceeded the limits set by the Privacy Act. See
The parties filed cross-motions for summary judgment and on July 24, 2000, the district court denied the plaintiffs’ motion for class certification and granted summary judgment in favor of the Government for all claimants except Doe. Doe v. Herman, No. Civ.A. 2:97CV00043, 2000 WL 34204432 (W.D. Va. July 24, 2000) (Doe I). The court also granted summary judgment in favor of Doe and awarded him $1,000.00 in statutory damages despite the fact that Doe suffered no actual damages. Id. at *4.
The parties cross-appealed and we affirmed the district court’s grant of summary judgment in favor of the Government and reversed the district court’s grant of summary judgment in favor of Doe. Doe v. Chao, 306 F.3d 170 (4th Cir. 2002) (Doe II). We held that because
The Supreme Court granted certiorari to decide whether “some actual damages must be proven before a plaintiff may receive the minimum statutory award” under the Privacy Act. See Doe v. Chao, 124 S.Ct. 1204, 1206 (2004) (Doe III). The Supreme Court affirmed the judgment of this Court on February 24, 2004, holding that Doe was not entitled to an award of statutory damages because he failed to show any actual damages. Id. at 1212.
After the Supreme Court’s decision, the case was remanded to the district court, where Doe made a motion for attorney fees and costs under
The Government timely appealed, arguing that when a party is unable to show actual damages, he or she is also precluded from recovering costs and fees. The Government bases its argument on (1) the plain text of the Privacy Act, (2) language from the Supreme Court’s opinion in Doe III, and (3) canons of construction. In the alternative, the Government argues that the only “reasonable” attorney fee in this case is no fee at all.
II.
We review de novo the district court’s legal determination that § 552a(g)(4) of the Privacy Act permits a party who does not recover actual damages to recover costs and attorney fees. See In re Coleman, 426 F.3d 719, 724 (4th Cir. 2005) (“A ruling concerning the proper
Section 552a(g)(4) provides:
In any suit brought under the provisions of subsection (g)(1)(C) or (D) of this section in which the court determines that the agency acted in a manner which was intentional or willful, the United States shall be liable to the individual in an amount equal to the sum of—
(A) actual damages sustained by the individual as a result of the refusal or failure, but in no case shall a person entitled to recovery receive less than the sum of $1,000; and
(B) the costs of the action together with reasonable attorney fees as determined by the court.
The text of §§ 552a(g)(1)(D) and (g)(4) clearly provide that (1) if an individual can show an adverse effect (2) caused by the Govern-
The Government, however, argues that the plain language of the statute shows that § 552a(g)(4) authorizes an award of attorney fees and costs only to parties who can show actual damages. In particular, the Government argues that the term “sum” means “that liability exists only if damages are established.” (Appellant’s Br. at 21.) We find the Government’s argument without merit.
The word “sum” — as it is used in this instance — requires a court to fulfill the simple act of adding actual damages and fees and costs once the preceding elements of the statute are satisfied. See Webster’s II New Riverside University Dictionary 1160 (1988) (defining sum as “[t]he total obtained as a result of adding“).3 Thus, subsection (g)(4)(B) acts independent of subsection (g)(4)(A). In other words, the statute does not require a showing of actual damages under (g)(4)(A) in order to receive costs and reasonable attorney fees under (g)(4)(B). If a court determined actual damages to be $0.00 and costs and reasonable attorney fees to be $1,000.00, for example, as a mathematical matter the sum of those two numbers is $1,000.00. Likewise, if actual damages were determined to be $1,000.00 and costs and fees were $0.00, the sum would again be $1,000.00. In short, the fact that one of two numbers might be zero does not prove that when added to another number, the sum of the two numbers must also equal zero. The word “sum” requires us to engage in addition, not multiplication.4
III.
When the language of a statute fairly can be understood to have only one, specific reading — as is the case with § 552a(g)(4)(B) — that fact would ordinarily signal the end of our discussion. See Dodd v. United States, 125 S.Ct. 2478, 2483 (2005) (“When the statute’s language is plain, the sole function of the courts — at least where the disposition required by the text is not absurd — is to enforce it according to its terms.” (internal quotation marks omitted)). There are, however, two reasons to pause in this instance. First, the Government argues that language in the Supreme Court’s Doe III decision effectively decides this case in its favor. Second, a result that grants costs and attorney fees to a party who does not recover monetary damages is quite unusual, and as the Supreme Court has previously noted, “[b]efore we will conclude Congress abandoned [the] established principle that a successful party need not pay its unsuccessful adversary’s fees . . . a clear showing that this result was intended is required.” Ruckelshaus v. Sierra Club, 463 U.S. 680, 685 (1983).
In any event, we disagree with the Government’s argument that if the statute is to be read as we suggest it must, Congress “could have simply drafted § 552a(g)(4) to provide that ‘the United States shall be liable to the individual in an amount equal to [ ]’ actual damages and costs with attorney’s fees and removed the phrase ‘the sum of’ from the Act.” (Appellant’s Br. at 21.) Requiring a court to discern the “amount of” of damages and costs and fees still requires a court to add the “amount of” damages and the “amount of” costs and fees in order to calculate the total. If the Government would have more support for its argument under its hypothetical statute than it does under the actual statute, then, it is because the suggested redrafting does more than simply remove the word “sum” from the Act. Rather, it alters the entire structure of § 552a(g)(4). Under the actual text and structure of the statute, the inclusion of the term “sum,” combined with the separating of damages in one subsection and costs and fees in another, together clarify that those two amounts must be determined independent of one another and then added together.
A.
The Government’s argument that the Supreme Court’s decision in Doe III precludes the holding we would reach based on the plain reading of the statute is primarily based on Doe III’s (1) reading of the term “liable” in the Act, (2) footnote 9, and (3) discussion of what completes a cause of action. We disagree with the Government’s reading of Doe III.
1.
In Doe III, the Supreme Court noted that “the statute does not speak of liability (and consequent entitlement to recovery) in a freestanding, unqualified way, but in a limited way, by reference to enumerated damages.” Doe III, 124 S.Ct. at 1209. In other words, the phrase “entitled to recovery” in subsection (g)(4)(A) informs the nature of the Government’s liability. A showing of an adverse effect and willfulness means not just that the Government is generally “liable;” rather, the Government is liable for something specific. Here, the Government is liable for the sum of (1) actual damages and (2) costs and reasonable attorney fees.
The Government interprets the Supreme Court’s above-quoted language, however, to mean that “[o]nly when a plaintiff proves [actual] damages as an element of his merits claim will the United States become ‘liable’ for damages and the accompanying costs and fees.” (Appellant’s Br. at 19.) It is unclear why the Government reads this language from Doe III — which was concerned entirely with
The Government’s argument fails to recognize that the statute separates damages from costs and fees in two different subsections and requires courts to add the two amounts when liability attaches. That such liability attaches upon a showing of an adverse effect and that the violation was intentional or willful is clear from the statute’s text. Once such liability attaches, the Government is liable for actual damages (if there are any) plus costs and reasonable attorney fees (if there are any). The Supreme Court’s phrase, then, means nothing more than the obvious fact that the Government cannot be liable for actual damages if there are no actual damages.
2.
The Government also argues that Doe III’s footnote 9 rejects any analysis that fails to treat actual damages as the recovery entitling a plaintiff to costs and attorney fees. Again, we disagree with the Government.
Footnote 9 was a response to a specific argument put forth in dis-
In footnote 9, the Supreme Court also rejected Judge Michael’s argument. The Supreme Court understood Judge Michael to argue “that any plaintiff who can demonstrate that he was adversely affected by intentional or willful agency action is entitled to costs and reasonable attorney’s fees under
3.
The Government next argues that Doe III requires a showing of actual damages in order for a plaintiff to have a cause of action under subsection (g)(4). Although the Supreme Court’s language may be subject to different interpretations, we do not believe it can be interpreted in the manner suggested by the Government.
In Doe III, the Court responded to Doe’s argument that “it would have been illogical for Congress to create a cause of action for anyone who suffers an adverse effect from intentional or willful agency action, then deny recovery without actual damages.” Doe III, 124 S.Ct. at 1210. Justice Souter’s opinion noted that subsection (g)(1)(D)’s language “recognizing a federal ‘civil action’ on the part of someone adversely affected” does not alone create a complete cause of action. Id. There must also be “proof of intent or willfulness in addition to adverse effect, and if the specific state of mind must be proven additionally, it is equally consistent with logic to require some actual damages as well.” Id. at 1210-1211. Accordingly, then, “an individual subjected to an adverse effect has injury enough to open the courthouse door, but without more has no cause of action for damages under the Privacy Act.” Id. at 1211.
The Government and Judge Michael’s dissent read far too much into one single paragraph of the Supreme Court’s Doe III opinion while simultaneously ignoring longstanding precedent. To accept the Government’s reading would be to conflate the underlying cause of action with the remedy provided. The Government’s argument suggests that relief is part of the underlying cause of action. This is not so. Such a reading fails to recognize traditional jurisprudential understandings of causes of actions.8
In Davis v. Passman, 442 U.S. 228, 237 (1979), the Supreme Court detailed the history of the phrase “cause of action,” and recognized that traditionally the phrase refers “roughly to the alleged invasion of recognized legal rights upon which a litigant bases his claim for relief.” Id. at 237 (internal quotation marks omitted). In other words, “[t]he concept of a ‘cause of action’ is employed specifically to deter-
In the case of § 552a(g)(4), then, Congress created a cause of action for a class of litigants who are adversely affected by the Government’s intentional or willful violation of the Privacy Act. In order to prevail — or be entitled to monetary relief — under subsection (g)(4)(A), a litigant must show actual damages.10 If there are no actual
tualize the meaning of a cause of action. He claims that the Supreme Court cited Prosser and Keeton on the Law of Torts in order to support the “‘traditional understanding’ of tort causes of action,” post at 27, and that our neglect of this portion of the Supreme Court’s analysis explains our “erroneous conclusion” that a remedy is not part of an underlying cause of action. The reason that we do not cite the Supreme Court’s language detailing how the “traditional understanding of tort causes of action” informs our decision here, however, is because such language does not exist.
As we noted in footnote 6, the Doe III language that Judge Michael relies on is concerned with what a litigant must show in order to entitled to recovery under the Act. In other words, and as we have often stated throughout this opinion, in order to recover damages under subsection (g)(4)(A) of the Act, a litigant must show that he suffered some actual damages. But the Supreme Court never speaks of the “traditional understanding of tort causes of action.” Instead, to quote the Supreme Court, it speaks of the “traditional understanding [of] tort recovery.” Doe III, 124 S.Ct. at 1209 (emphasis added). And of course, relief — or recovery stemming from the underlying cause of action — is distinct from the cause of action itself. Finally, even if there remained any doubt, the language that Judge Michael invokes stems from Part III of the Supreme Court’s opinion, which concerned Doe’s primary argument that any person who shows an adverse effect caused by the Government’s intentional or willful violation is a person entitled to recovery under subsection (g)(4)(A). See id. It is not until Part IV, however, when Doe III cleans up the “loose ends,” that the opinion addresses the underlying Privacy Act cause of action. See id. at 1210.
In short, we find nothing in the Supreme Court’s Doe III opinion that trumps the plain meaning of the statute.
B.
The Government argues that aside from Doe III, we must also interpret § 552a(g)(4)(B) through the lens of two canons of statutory construction. First, it suggests that statutory grants of the right to recover attorney fees and costs must be construed strictly in favor of the sovereign. Second, the Government argues that § 552a(g)(4) does not amount to a “clear showing” of congressional intent to depart from the rule that a prevailing party need not pay a non-prevailing party’s litigation costs and fees.13
1.
The Government correctly recognizes that the scope of the government’s waiver of sovereign immunity must be strictly construed in favor of the sovereign. Lane v. Pena, 518 U.S. 187, 192 (1996). Moreover, “[i]t is well-settled that attorneys’ fees may be assessed against the United States only when it has waived its sovereign immunity by statute.” O’Brien v. Moore, 395 F.3d 499, 503 (4th Cir. 2005) (internal quotation marks and alterations omitted). Thus, we will conclude that Congress intended to waive the government’s sovereign immunity for an award of attorneys’ fees only when Congress expresses such intent unambiguously. See id. (noting the Court’s task of determining whether Congress’ waiver of immunity for fees in civil actions unambiguously extends to habeas proceedings).
In examining § 552a(g)(4)(B), we find no ambiguity in Congress’ waiver. As we noted in Part II, supra, we believe the text of this statute as it relates to Doe’s quest for attorney fees is clear. Our conclusion that the statute, on its face, undoubtedly allows for Doe to recover an award of attorney fees could not have been made without a simultaneous recognition that the statute also unambiguously waives the government’s immunity and makes it liable to Doe for costs and fees. The statute permits of no other reading.
2.
In Ruckelshaus, the Supreme Court noted that “requiring a defendant, completely successful on all issues, to pay the unsuccessful plaintiff’s legal fees would be a radical departure from long-standing fee-shifting principles adhered to in a wide range of contexts.” 463 U.S. at 683. Relying on Ruckelshaus, the Government argues that in order for Doe’s attorney fee award to stand, we must find that Congress made a “clear showing” of its intent to abandon the principle that non-prevailing parties may not recover costs and attorney fees. See id. at 685.
Ruckelshaus concerned a provision of the Clean Air Act, which permitted a court to “award costs of litigation (including reasonable attorney and expert witness fees) whenever [the court] determines that such an award is appropriate.” Id. at 682-83 (emphasis in origi-
Ruckelshaus does not aid the Government here. The Clean Air Act provision at issue in Ruckelshaus was meaningfully different from the Privacy Act provision here. The provision at issue in Ruckelshaus allowed the award of costs and reasonable fees when “appropriate.” Other statutes have similar language, allowing for fee-shifting either when “appropriate” or “in the interest of justice.” See, e.g.,
As it relates to attorney fees and costs, and given the Supreme Court’s interpretation in Doe III, § 552a(g)(4) is a clear statute. It makes the Government liable for costs and reasonable attorney fees when the Government intentionally or willfully violates the Privacy Act and that violation causes the litigant an adverse affect. Moreover, it does so unambiguously and without qualification.
IV.
The Government next contends that even if the district court was correct in concluding that the Government was liable to Doe for costs and reasonable attorney fees, the court abused its discretion and awarded Doe an unreasonable fee. We agree.
We review a district court’s award of attorney fees for an abuse of discretion. Johnson v. City of Aiken, 278 F.3d 333, 336 (4th Cir. 2002). “In reviewing such discretionary rulings, we have adhered to the proposition that discretion has been abused if a court has failed adequately to consider judicially recognized factors constraining its exercise of discretion, or in relying on erroneous factual or legal premises.” Mid Atl. Med. Servs., LLC v. Sereboff, 407 F.3d 212, 221 (2005) (internal quotation marks omitted). The Supreme Court has held that when fee-shifting statutes use similar language, they should be interpreted alike. Indep. Fed’n of Flight Attendants v. Zipes, 491 U.S. 754, 758 n.2 (1989). Moreover, the word “reasonable” is a term of art frequently used by Congress in fee-shifting statutes; accordingly, the Supreme Court’s “case law construing what is a ‘reasonable’ fee applies uniformly to all [fee-shifting statutes].” City of Burlington v. Dague, 505 U.S. 557, 562 (1992).
The Government contends that because Doe sought money damages from the United States, and was awarded none, the only reasonable attorney fee is no fee at all.16 Doe, on the other hand, counters by arguing that the real value and importance in his suit should not be measured by the monetary award, but instead by the declaratory and injunctive relief he obtained. Accordingly, he argues that his attorney fee award can be justified based on that relief.
We find Doe’s argument unpersuasive. First, Doe did not win any declaratory or injunctive relief. While it is true that an injunction was entered prohibiting the Government from identifying black lung
Second, and more importantly, subsection (g)(1)(D) of the Privacy Act does not allow courts to grant injunctive or declaratory relief. In fact, the only relief available to Doe under that subsection is monetary relief. See Doe III, 540 U.S. at 635 (Ginsburg, J., dissenting on other grounds (“It bears emphasis that the Privacy Act does not authorize injunctive relief when suit is maintained under § 552a(g)(1)(C) or (D).“)); Doe v. Stephens, 851 F.2d 1457, 1463 (D.C. Cir. 1988) (holding that aside from two specific subsections, the Privacy Act “precludes other forms of declaratory and injunctive relief“); Clarkson v. IRS, 678 F.2d 1368, 1375 n.11 (11th Cir. 1982) (“The Privacy Act expressly provides for injunctive relief for only two types of agency misconduct, that is, wrongful withholding of documents under subsection (d)(1) and wrongful refusal to amend an individual’s record under subsection (d)(3). The remedy for violations of all other provisions of the Act is limited to recovery of damages upon a showing that the agency acted in an intentional or willful manner.“) (internal citation omitted); Hanley v. United States Dep’t of Justice, 623 F.2d 1138, 1139 (6th Cir. 1980) (holding that “the injunctive relief sought by [the plaintiffs] is precluded under the Privacy Act by the failure of Congress to provide for such relief“); Parks v. United States, 618 F.2d 677, 684 (10th Cir. 1980) (same); Cell Assoc., Inc. v. Nat’l Inst. of Health, 579 F.2d 1155, 1159-60 (holding that the Privacy “Act makes no provision for [injunctive relief to prevent violations of subsection (b)] as part of the remedies that it does provide“).17 Even
We therefore return to the question of whether Doe’s fee award was reasonable in light of his failure to prove monetary damages. “Where recovery of private damages is the purpose of . . . litigation, a district court, in fixing fees, is obligated to give primary consideration to the amount of damages awarded as compared to the amount sought.” Farrar v. Hobby, 506 U.S. 103, 114 (1992). Moreover, “[a] reduced fee award is appropriate if the relief, however significant, is limited in comparison to the scope of the litigation as a whole.” Hensley v. Eckerhart, 461 U.S. 424, 440 (1983). Accordingly, if “a plaintiff recovers only nominal damages . . . the only reasonable fee is usually no fee at all.” Farrar, 506 U.S. at 115. Finally, and most importantly, when a district court determines what fee is reasonable, the “most critical factor” in that determination “is the degree of success obtained.” Hensley, at 436.
The basis of Doe’s suit under the Privacy Act was monetary damages. He sought damages for emotional distress, but as we concluded in Doe II, he failed to show any actual damages. Accordingly, the Government asks us to find that when a plaintiff fails to prove any actual damages in his quest for monetary relief under § 552a(g)(4),
The district court considered, but ultimately rejected this argument, finding that it was “nothing more than a restatement of the [Government’s] previous argument that since [ ] Doe failed to recover actual damages . . . he is not entitled to an award of costs and attorneys’ fees . . . .” Doe IV, 346 F.Supp. 2d at 848. The district court found that the Government’s argument “reads ‘reasonable’ attorneys’ fees as requiring that a party achieve some success on the merits before he can recover.” Id. at 849. Thus, according to the district court, the Government’s definition of the word “reasonable” impermissibly incorporates a “substantially prevail” requirement into the statute. Id.
We disagree with the district court. Statutes that require a complainant to “substantially prevail” in order to obtain costs and fees do so as a prerequisite to obtaining fees. See Ruckelshaus, 463 U.S. at 701 (noting that most fee-shifting statutes require that a party ‘prevail’ or ‘substantially prevail’ in order to obtain fees” (emphasis added)). That is to say, a party has no claim whatsoever to fees under such provisions — which are not implicated in this action — unless the party substantially prevailed in their underlying claim. See, e.g., Reinbold v. Evers, 187 F.3d 348, 363 (4th Cir. 1999) (noting that the question of “whether a party who has substantially prevailed is entitled to recover attorneys’ fees [ ] is not reached unless and until [the party] has proved he has substantially prevailed” (emphasis in original)). The word “reasonable,” as it is used in fee-shifting statutes, such as the one here, however, has a distinct meaning, and it is only after a district court determines that it may award attorney fees that the word “reasonable” comes into play. See Hensley, 461 U.S. at 433 (stating that after a court determines that a party “prevailed” under the statute, “[i]t remains for the district court to determine what fee is ‘reasonable’“). Put simply, “reasonableness” concerns the appropriate amount of fees once they are determined to be authorized, whereas whether a party “substantially prevails” concerns the appropriateness of awarding fees at all.
Thus, the district court erred in its reasonableness analysis by failing to “give primary consideration to the amount of damages awarded as compared to the amount sought” by Doe, a consideration that exists
Accordingly, because we find that the district court abused its discretion in determining the reasonableness of the fee award, we vacate the award and because the district court is in the best position to determine what is a “reasonable” attorney fee award, we remand to the district court for recalculation of fees.19 We do not, however, disturb the district court’s calculation of Buck Doe’s litigation costs. Subsection (g)(4)(B) states that the Government shall be liable for “the costs of the action together with reasonable attorney fees.” Doe is therefore entitled to the actual costs of his action unrestrained by any reasonableness inquiry.
V.
In sum, we agree with the district court’s interpretation of the Privacy Act. It plainly states that the Government shall be liable for costs and reasonable attorney fees when its intentional or willful violation of the Act adversely affects a litigant, and neither the Supreme Court’s Doe III opinion nor canons of construction lead to an opposite conclusion. Because, however, the district court failed to determine the reasonableness of Doe’s attorney fee award in light of the fact that Doe recovered no damages, we vacate that portion of the award per-
AFFIRMED IN PART; VACATED AND REMANDED IN PART
MICHAEL, Circuit Judge, dissenting:
If this case had called for examination of the Privacy Act’s text and nothing else, perhaps I would have subscribed to the majority’s reading of the statute. The statutory text alone, however, cannot be the sole focus here because the Supreme Court has spoken, if not on the exact question posed, then at least on a subject very closely related. As a subordinate appellate court, our responsibility is to give effect to statutory text in a way that hews to Supreme Court guidance on how to interpret that text. Because I believe we must weigh the Supreme Court’s words more heavily than does today’s majority, I respectfully dissent. Although I concluded when this case was previously before us that Buck Doe had the better argument, here the government ought to carry the day. The Supreme Court’s Doe v. Chao opinion virtually compels us to hold that a plaintiff who has not suffered actual damages under
I dissented in part from our earlier opinion because I disagreed with the conclusion that a plaintiff such as Buck Doe must suffer actual damages to be eligible for statutory damages under § 552a(g)(4)(A). Doe v. Chao, 306 F.3d 170, 187-203 (4th Cir. 2002) (”Doe II“) (Michael, J., concurring in part and dissenting in part). The Supreme Court affirmed the result reached by the Doe II majority. Doe v. Chao, 540 U.S. 614, 627 (2004) (”Doe III“). In Doe III the Supreme Court suggested clearly how we should analyze eligibility for a recovery of costs and fees under § 552a(g)(4)(B), even though that fee provision was not then in dispute.
Specifically, Justice Souter wrote for the Court: “[A]n individual subjected to an adverse effect has injury enough to open the court-
The majority avoids confrontation with footnote 9 of Doe III by reading that footnote as pertaining only to Doe’s § 552a(g)(4)(A) claim. See ante at 10 (asserting that “the Supreme Court did not attempt to address in dicta whether Doe was entitled to attorney fees“). This approach ignores the footnote’s direct statement that “damages [are treated] as a recovery entitling a plaintiff to costs and fees.” Doe III, 540 U.S. at 625 n.9. This statement was not crucial to Doe III’s holding, and it is dicta so far as Doe’s claim for attorney fees is concerned. That does not end the analysis, however. We said long ago that “certainly dicta of the United States Supreme Court should be very persuasive.” Fouts v. Maryland Casualty Co., 30 F.2d 357, 359 (4th Cir. 1929). Moreover, “[c]ourts frequently and properly cite and rely upon dicta that correctly set forth governing or relevant legal principles.” New York Life Ins. Co. v. United States, 118 F.3d 1553, 1557 (Fed. Cir. 1997). The question presented in Doe III did not have to involve attorney fees for the Supreme Court’s reasoning on how to interpret the Privacy Act to be highly persuasive authority. This reasoning should guide us here.
I also take seriously the Supreme Court’s lesson about the distinction between plaintiffs who have standing to sue and those who have a true cause of action under the Privacy Act. Doe III, 540 U.S. at 624-25. The majority attempts to sidestep this precept by emphasizing the differences between a cause of action and the relief that a plaintiff
The Supreme Court has “often stated” that “the question of what remedies are available under a statute that provides a private right of action is ‘analytically distinct’ from the issue of whether such a right exists in the first place.” Franklin, 503 U.S. at 65-66 (quoting Davis, 442 U.S. at 239). This sentence clarifies that Davis’s discussion of causes of action and appropriate relief arose in a particular legal context, namely the Supreme Court’s jurisprudence on implied private rights of action. In that context, “it may be said that . . . cause of action is a question of whether a particular plaintiff is a member of the class of litigants that may, as a matter of law, appropriately invoke the power of the court; and relief is a question of the various remedies a federal court may make available.” Davis, 442 U.S. at 239 n.18.
The relationship between that context and Doe’s case is tangential at best, however, because Congress has expressly empowered plaintiffs to bring private suits for money damages under the Privacy Act. The phrase “cause of action” has long denoted more than one legal concept. In 1933 the Supreme Court, speaking through Justice Cardozo, explained that the Court “ha[d] not committed itself to the view that the phrase is susceptible of any single definition that will be independent of the context or of the relation to be governed.” United States v. Memphis Cotton Oil Co., 288 U.S. 62, 68 (1933). In the years since the Court has continued to emphasize that the phrase’s meaning depends on context. See Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 118 n.6 (1998) (Stevens, J., concurring) (indicating that Davis construed only “one meaning of the term.“). A more careful examination should have led the majority to see that the legal concept at issue in Davis, a case assessing an implied right of action, was not the same as the concept at issue in Doe III, a case assessing the elements of an express statutory claim. Our task is simply to identify and apply the concept appropriate to this case.
Rather than look far afield to Davis and Franklin (again, cases concerning implied rights of action) to understand the Privacy Act “cause
The majority discusses Doe III’s invocation of the “traditional understanding” of tort causes of action only in an attempt to wave away this dissent. Ante at 9 n.6, 13-14 n.10. Thus, the majority neglects the role that this understanding played in the Supreme Court’s analysis of the elements of a Privacy Act claim. Perhaps this neglect explains the majority’s erroneous conclusion that “those litigants who are adversely affected by the Government’s intentional or willful violation of the Privacy Act” have a “cause of action,” ante at 14-15, regardless of whether they can allege any damages. This conclusion cannot be squared with the Supreme Court’s statement that “an individual subjected to an adverse effect has injury enough to open the courthouse door, but without more has no cause of action for damages under the Privacy Act,” Doe III, 540 U.S. at 624-25 (emphasis added), unless it is recognized that what the majority means by “cause of action” is not what the Supreme Court means. And without a cause of action in the Supreme Court’s sense of that term, Doe would not be entitled to recover fees or costs because there would be no basis for holding the United States “liable” to Doe for any “sum.” § 552a(g)(4). That is, there can be no liability absent a claim for relief, and no such claim absent actual damages.
To be sure, the practical impact of the majority’s interpretive errors is somewhat blunted by its emphasis on the conventional judicial
As I would reverse the district court’s judgment for the reasons stated, I must respectfully dissent.