Lead Opinion
The government appeals an order awarding appellees attorney’s fees under § 204 of the Equal Access to Justice Act (“EAJA”), Pub.L. No. 96-481, 94 Stat. 2321, 2325, 2327 (1980), amended by Act of August 5, 1985, Pub.L. No. 99-80, 99 Stat. 183, 184-87 (current version at 28 U.S.C.A. § 2412 (West Supp.1986)). The principal question on appeal is whether this suit was pending on the effective date of the EAJA.
I
In 1974, appellees filed a class action against the Secretary of State, challenging the legality of a State Department employment practice. Plaintiffs requested declaratory, monetary, and injunctive relief, costs including reasonable attorney’s fees, and such further relief as is just and proper. Complaint 23-25. In 1977, the District Court granted partial summary judgment to the class, declaring the challenged practice unlawful and enjoining its continuation. Crowley v. Kissinger, Civil Action No. 74-494 (D.D.C. June 24, 1977) (Memorandum). The parties then stipulated that individual claims would be considered by a Special Master, whose recommendations would be appealable to the District Court. Stipulation of Claim Procedures and Consent Order, Crowley v. Vance, Civil Action No. 74-494 (D.D.C. filed Nov. 1, 1978). On May 22, 1980, the District Court adopted the Special Master’s recommendations as to
II
The government’s principal argument is that appellees are ineligible for attorney’s fees under the EAJA because their suit was not pending on October 1, 1981, the effective date of the Act. Pub.L. No. 96-481, § 208, 94 Stat. 2321, 2330 (1980). The government’s argument is correct if two premises are true. The first is that a suit is not pending within the meaning of the EAJA when it has been finally resolved on the merits and only collateral issues, like the availability or amount of attorney’s fees, remain to be resolved. As appellees concede, this court has already accepted that premise, in Nichols v. Pierce,
The last order on the merits in this case was issued on May 22, 1980, when the District Court adopted the conclusions and recommendations of the Special Master regarding the entitlement of various class members to individual monetary relief. Crowley v. Muskie,
The government did not appeal on the merits, however, instead appealing only the
Even granting that assumption, however, the appellees’ argument also rests upon another assumption: that the pendency of an unresolved request for attorney’s fees normally affects the appealability of an order finally disposing of the merits of the case. The sole support appellees adduce for this proposition is Crowley v. Shultz,
This latter question was once the source of substantial confusion and disagreement among the federal circuits. See, generally Green, From Here to Attorney’s Fees: Certainty, Efficiency, and Fairness in the Journey to the Appellate Courts, 69 Cornell L.Rev. 207, 224-26 (1984) (hereinafter Green, From Here to Attorney’s Fees). This confusion, however, has been greatly reduced by the Supreme Court’s decision in White v. New Hampshire Department of Employment Security,
The Supreme Court’s clear signal in White did not go unheeded; with only one exception of which we are aware,
Nor can we discern such an indication in the Supreme Court’s decision in Boeing Co. v. Van Gemert,
Nor can we agree with the dissent that the rule we apply is inconsistent with the venerable principle that a final judgment must dispose of all requests for monetary relief contained in the complaint. The dissent errs in assuming that requests for statutory attorney’s fees are requests for monetary relief within the meaning of this rule. They are no more so than requests for costs,
Thus, the distinction urged by the dissent is not supported by the authorities upon which the dissent relies. Moreover, it is flatly rejected by other substantial authority. In addition to the plain language of White, decisions of at least three circuits hold judgments to be final and appealable even though they did not resolve a request for attorney’s fees contained in the complaint. See, e.g., Ellender v. Schweiker,
Finally, the distinction urged by the dissent has no basis in logic or policy. Whatever the arguments for and against the rule that the pendency of a request for statutory attorney’s fees does not affect the finality of a judgment disposing of the merits of a suit, compare White,
We think that here, as elsewhere where a rule fixing the jurisdiction of the courts is at issue, clarity and simplicity are the chief virtues. The principles determining whether a judgment is final are already more than complex enough to bedevil both the attorneys who must follow them and the judges who must apply them, see, e.g., Dickinson v. Petroleum Conversion Corp.,
Ill
For these reasons, we hold that a judgment finally disposing of the merits of a suit is final and appealable notwithstanding the pendency of a request for statutory attorney’s fees, whether the pending request was made in the complaint, by prejudgment motion, or by postjudgment motion. Applying this holding to the facts of this case, we conclude that the district court order of May 22, 1980, which finally disposed of the merits of this suit, was immediately final and appealable, notwithstanding the absence of any final disposition of appellees’ request for attorney’s fees. As of the effective date of the EAJA, October 1, 1981, no appeal of that order was pending and the time to bring such an appeal had long passed. See Nichols,
* * * * * *
The order of the District Court awarding attorney’s fees to appellees is reversed.
So ordered.
Notes
. Although the White Court had before it only a request for fees brought under 42 U.S.C. § 1988, its reasoning applies with full force to fee requests brought under the many similar statutory provisions authorizing courts to award attorney's fees to prevailing parties in appropriate circumstances — like the Back Pay Act, see 5 U.S.C. §§ 5596(b)(1 )(A)(ii), 7701(g)(1) (1982), which is the provision at issue in this case. Subsequent cases have uniformly interpreted White to be fully applicable to such statutes, see infra pages 504-05, and we agree with this interpretation. We do note, however, that a number of courts have expressed the view that White is not directly applicable to requests for attorney’s fees predicated upon nonstatutory sources of authority, e.g., contractual agreements, which are thought to raise issues not raised by statutory fee requests. See, e.g., F.H. Krear & Co. v. Nineteen Named Trustees,
. The exception is Penland v. Warren County Jail,
The Penland court acknowledged that White, as well as Smillie v. Park Chemical Co.,
. In World of Sleep and Gaddis, the Tenth Circuit declined to apply its holdings retroactively in light of the fact that prior to White it had operated under the clearly established rule that an unresolved request for statutory attorney’s fees rendered a judgment finally resolving the merits of a case nonfinal and nonappealable.
. Webb declined to apply its holding to the case before it, however, concluding that the case presented "unique circumstances” justifying forbearance. Id. at 105-06. No such "unique circumstances” are present in this case.
. By saying this we do not intend to imply any view on the ongoing dispute over whether requests for statutory attorney’s fees are in fact always properly treated as requests for costs for purposes of Fed.R.Civ.P. 54(d), 58. See White,
Dissenting Opinion
(dissenting):
In a class action against the State Department, Crowley, et al., prevailed on their claim that the Department had improperly abolished certain positions. They now seek attorney fees under the Equal Access to Justice Act (the “Act”), 28 U.S.C. § 2412 (1982 & 1985 Supp.).
I.
Plaintiffs-Appellees Crowley, et al. (herein “Crowley”), in a 1974 class action complaint seeking damages, injunctive relief, and reasonable attorney fees, complained that the State Department improperly placed civil servants in overcomplement status, and thereby abolished certain positions but retained the employees at other positions with the same compensation. In a 1977 Memorandum and Order the district court granted appellees partial summary judgment. After the district court’s 1977 order, the decision on the merits was not final; it was still necessary to identify the individuals who had been placed in over-complement status, determine the appropriate relief and adjudicate the claim for attorney fees. The parties subsequently entered into a consent decree authorizing a Special Master to determine the damage claims of eight individual members of the class. On May 22, 1980 the district court affirmed in toto the findings of the Special Master that class members were entitled to back pay and were eligible for attorney fees. Crowley v. Muskie,
Following the determination by the Special Master, Crowley filed a motion for attorney fees under the 1978 Civil Service Reform Act amendments to the Back Pay Act, 5 U.S.C. § 5596(b)(l)(A)(ii) (1982). The district court’s decision filed May 22, 1980 adopted the Special Master’s recommendation that appellees were eligible for attorney fees under the Back Pay Act.
The government appealed the awards of attorney fees and could have appealed the back pay award but did not. This court reversed the district court, holding that Crowley was not entitled to attorney fees under the Back Pay Act. Crowley v. Shultz (“Crowley /”),
II.
The Act covers “civil actionfs] or adversary adjudication[s] [involving the United States government] ... pending on, or commenced on or after [October 1, 1981].” Equal Access to Justice Act § 208, Pub.L. No. 96-481, 94 Stat. 2330 (1980) (emphasis added). It is therefore necessary to determine at the outset whether Crowley’s action was “pending” on October 1, 1981.
After the district court awarded attorney fees under the Act, see Memorandum and Order of May 16, 1984, this court decided Nichols v. Pierce,
In interpreting the applicable provisions of the Equal Access to Justice Act, the panel in Nichols applied the well-established principle that waivers of sovereign immunity must be strictly construed. “As a waiver of sovereign immunity, the Act’s terms must affirmatively establish liability, not merely fail to preclude it.” Nichols,
The Nichols court noted that Congress in the Equal Access to Justice Act did not define “pending,” and therefore concluded that Congress used the word “pending” in its ordinary sense. The court stated: “A pending matter is one which is undecided, awaiting decision or settlement; a lawsuit is pending from its inception through the final judgment.” Id. (citations omitted); cf Massachusetts Union of Public Housing Tenants, Inc. v. Pierce,
The complaint raised many substantive legal issues related to the merits of the case, but these issues were all finally resolved by the district court’s memorandum and order of 12 September 1980. That decision essentially ended the lawsuit, since there was no longer any question about whether the appellant was entitled to all of the relief requested in the complaint. Because no appeal from that decision was prosecuted, no issue even marginally related to the merits of the suit has subsequently been subject to litigation or otherwise contested. Since there was no longer any undecided or unsettled issue in the original lawsuit, that lawsuit has not been pending from the time the district court’s final order was entered.
III.
The threshold issue in this case is whether on October 1, 1981 any disputes were “pending,” i.e., still appealable, other than those relating to attorney fees. The district court’s May 22, 1980 decision adopted, inter alia, the Special Master’s recommendation that Crowley was entitled to attorney fees (the “entitlement decision”) under the Civil Service Reform Act amendments to the Back Pay Act. The government timely filed notice of appeal following that decision, but on September 12, 1980 voluntarily withdrew its appeal. No reason was given for not continuing with its appeal, but it could have been that the government considered its appeal was premature. On September 17,1981 the district court granted attorney fees in the amount of approximately $160,000. The district court, government, and plaintiffs all referred to this as a “judgment.” See D.C. District Court File Nos. 239, 241, 242, 244, 246, 247, 249, 250, 253. The government on November 16, 1981 appealed to this court “from the judgment of this Court entered on the 17th day of September, 1981 in favor of plaintiffs____” Dist.Ct. File No. 250 (emphasis added). This was the first “judg
However, the government challenged only the entitlement to and the amount of attorney fees awarded by the district court. In opposition Crowley argued that the government had not timely appealed the district court’s entitlement decision, rendered May 22, 1980. According to Crowley’s argument the government could appeal only the September 17, 1981 decision as to the amount of attorney fees, because in dropping its earlier appeal the government had foregone the right to challenge the district court’s May 1980 decision as to entitlement.
This court rejected Crowley’s contention, thus in effect holding that interim decisions were not appealable and that the appeal from the final judgment opened the entire record to review, i.e., both aspects of an attorney fee award — entitlement and amount — could be appealed within the statutory period for filing appeals, dating from the district court’s determination made a year later of the amount of the attorney fee award. Crowley I,
In this appeal we must decide a related question of appealability: Whether issues involved in the district court’s order of May 22,1980 were appealable when the amount of attorney fees under the Back Pay Act was determined on September 17, 1981. The import of this inquiry in the present case is clear, for if only issues relating to attorney fees were appealable on the October 1, 1981 effective date of the Act, then our decision in Nichols counsels that nothing was “pending” that would allow an appeal of the attorney fee recovery.
The Supreme Court decision in White v. New Hampshire Department of Employment Security,
This conclusion follows from consideration of the interplay of Rule 59(e) (ten-day period for motion to alter or amend judgment), Rule 54(a) (defining “judgment”), and 28 U.S.C. § 1291 (final decision). “Judgment” is defined in Rule 54(a) as “a decree or any order from which an appeal lies.” Rule 54(a) in turn requires reference to 28 U.S.C. § 1291, which states that only a “final decision” may be appealed to the courts of appeals. Thus, if the motion for attorney fees is not a “motion to alter or amend the judgment,” then the district court’s disposition of the attorney fee petition will have no effect on the finality of the validly entered “judgment.” By necessary implication the judgment on the merits becomes a final decision — and hence appealable — regardless of the status of the attorney fee petition. See Green, From Here to Attorney’s Fees: Certainty, Efficiency, and Fairness in the Journey to the Appellate Courts, 69 Cornell L.Rev. 207, 226-27 (1984). The decision on the merits may therefore be severable from a post-judgment motion for attorney fees for the purpose of determining appealability issues, where the complaint did not request attorney fees.
The picture is clouded, however, by the long-standing principle that a “final decision” under 28 U.S.C. § 1291 does not exist until all elements contained in a plaintiff’s prayer for relief have been decided by the district court. See Liberty Mutual Insurance Co. v. Wetzel,
It is obvious from the District Court’s order that respondents, although having received a favorable ruling on the issue of petitioner’s liability to them, received none of the relief which they expressly prayed for in the portion of their complaint set forth above. They requested an injunction, but did not get one; they requested damages, but were not awarded any; they requested attorneys’ fees, but received none.
... [T]he District Court’s order ... finally disposed of one of respondent’s prayers for relief.
These cases indicate that finality of judgment for purposes of appeal is to be determined on the basis of what was included in the plaintiff’s prayer for relief. The Supreme Court’s decision in White v. New Hampshire Department of Employment Security is not to the contrary. White allowed attorney fees in a civil rights action where the complaint did not include a specific prayer for “attorney fees,” because the statute, 42 U.S.C. § 1988, allowed attorney fees “as part of the costs.” White,
With these considerations in mind we repeat that Crowley’s complaint filed in 1974 specifically requested reasonable attorney fees. Complaint at 25. On May 22, 1980 Crowley received a favorable judgment from the district court as to all issues except for the amount of attorney fees. The government timely filed notice of appeal, but voluntarily withdrew its appeal on September 12, 1980. On September 17, 1981 the district court determined the amount of attorney fees under the Back Pay Act. At that point in time — given the holding of Liberty Mutual — the district court’s decision from the previous year, Crowley v. Muskie,
September 17, 1981 is therefore the date from which both parties could have appealed the attorney fee award and the award of back pay. That the government did not appeal the back pay award does not alter the fact that the time to appeal the merits had not been exhausted. The government could have timely appealed the back pay award following the entry of the attorney fee award as the final judgment on the relief requested in the complaint. Until the expiration of the statutory period for filing the notice of appeal, see Fed.R.App.P. 4(a)(1), the entire cause of action between Crowley and the government was “pending” as to the merits of the case on all issues, including attorney fees. Therefore, on the effective date of the Act, October 1, 1981, the civil action against the government was pending.
The facial similarity between this case and Nichols v. Pierce, supra, is misleading, because the request for attorney fees in
The government further argues that Crowley’s motion, filed June 13, 1983, for attorney fees under the Act was invalid because it was untimely filed. Applications for attorney fees under the Act must be filed “within thirty days of final judgment in the action.” 28 U.S.C. § 2412(d)(1)(B) (1982). This court recently held that the thirty-day period “begins to run only when a judgment is ‘no longer contestable through the appellate process.’ ” Massachusetts Union of Public Housing Tenants v. Pierce, 755 F.2d 177, 180 (D.C.Cir. 1985) (quoting McDonald v. Schweiker,
IV.
The Act restricts the court’s discretion with respect to attorney fees as follows:
[Ajttorney fees shall not be awarded in excess of $75 per hour unless the court determines that an increase in the cost of living or a special factor, such as the limited availability of qualified attorneys for the proceedings involved, justifies a higher fee.
28 U.S.C. § 2412(d)(2)(A)(ii) (1982) (emphasis added). The district court awarded Crowley an upward adjustment of twenty-five percent of the lodestar, based on the quality of representation and the delay in payment. Memorandum and Order of July 23, 1984, at 9-10. The government contends that any such adjustment is forbidden as a matter of law by the above-quoted provision of the Act. See Government Brief at 14. The government does not, however, contend that the district court committed an abuse of discretion in finding Crowley deserving of an upward adjustment of twenty-five percent.
The Supreme Court’s recent decision in Library of Congress v. Shaw, — U.S. -,
The Supreme Court’s decision in Shaw —particularly Shaw’s equation of interest and delay — calls into question part of this court’s holding in Action on Smoking and Health v. C.A.B.,
The holding of ASH that delay in payment may be considered in an attorney fee award under the Equal Access to Justice Act cannot survive the Supreme Court’s decision in Shaw. This follows from the holding in Shaw that interest and a delay-factor are “functionally equivalent,” — U.S. at-,
In the present case, the district court based an upward adjustment of twenty-five percent on two factors: delay in payment
V.
In my opinion the court should hold that Crowley’s motion for attorney fees under the Equal Access to Justice Act was pending on October 1, 1981, and was timely filed within thirty days of final judgment. Because the district court did not apportion
. The Act expired on September 30, 1984, see 28 U.S.C. § 2412 (note), but was reenacted and amended on August 5, 1985. See Equal Access to Justice Amendments, Pub.L. No. 99-80, 99 Stat. 183 (1985).
. There was one subsequent minor modification. Dist.Ct. File No. 250 (Dec. 16, 1981).
. The statute provides:
In any action or proceeding to enforce a provision of sections 1981, 1982, 1983, 1985, and 1986 of this title, title IX of Public Law 92-318, or title VI of the Civil Rights Act of 1964, the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney’s fee as part of the costs.
42 U.S.C. § 1988 (1982).
. Rule 59(e) provides:
A motion to alter or amend the judgment shall be served not later than 10 days after entry of the judgment.
. Rule 54(b):
(b) Judgment Upon Multiple Claims or Involving Multiple Parties. When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third-party claim, or when multiple parties are involved, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment. In the absence of such determination and direction, any order or other form of decision, however designated, which adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties shall not terminate the action as to any of the claims or parties, and the order or other form of decision is subject to revision at anytime before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.
Fed.R.Civ.P. 54(b).
. Shaw held that Congress had not waived sovereign immunity for an award of interest accompanying a grant of attorney fees under § 706(k) of Title VII. That section provided that "the court, in its discretion, may allow the prevailing party, other than the [EEOC] or the United States, a reasonable attorney’s fee as part of the costs, and the [EEOC] and the United States shall be liable for costs the same as a private person.” 42 U.S.C. § 2000e-5(k).
. The Act specifically allows an upward adjustment of the attorney fee award for "an increase in the cost of living.” 28 U.S.C. § 2412(d)(2)(A). But the district court nowhere indicated a reliance on that part of the Act, and instead referred only to the delay factor permitted by ASH as an unenumerated "special factor.” While delay and a change in the cost of living are similar in that they both compensate for the change in the value of money overtime, they are analytically distinguishable. A change in the cost of living (or inflation), an easily verifiable factor that ordinarily should be proven by use of a reliable reference such as the consumer price index, compensates for the loss due to the change in the value of money. Delay or interest, on the other hand, compensates primarily for the loss of the use of money, and would involve different, perhaps more extensive, proof at trial. Due to the rigorous standard of Library of Congress v. Shaw, such distinctions are of more than semantic significance.
