Lead Opinion
This is a motion for fees and costs under section 307(f) of the Clean Air Act, which authorizes courts to “award costs of litigation (including reasonable attorney and expert witness fees) whenever [they] determine[] that such award is appropriate.” 42 U.S.C. § 7607(f). In the underlying litigation, movants, a group of Native American tribes and tribal associations, intervened on behalf of petitioners who were challenging EPA rules regulating mercury emissions from power plants. See New Jersey v. EPA,
Tribal Intervenors, who also pressed for vacatur, albeit on the basis of different arguments that we never reached, now ask us to order EPA to pay their fees and costs. EPA objects, claiming that Tribal Intervenors are ineligible for fee shifting. EPA also argues that even were Tribal Intervenors eligible, the size of their fee request is unreasonable and should be reduced by more than two-thirds. For the reasons explained below, we conclude that Tribal Intervenors merit a fee award. We decline, however, to weigh in now on the appropriate amount; instead, we direct the parties to our Appellate Mediation Program.
I.
In support of its argument that Tribal Intervenors are ineligible for fees, EPA relies on two cases, Donnell v. United States and Alabama Power Co. v. Gorsuch, in which we limited intervenor fee recovery to circumstances where intervenors had influenced the outcome of the
This case is very different. Here, the Tribes intervened on the side of petitioners, not the government, and they offered two substantial arguments based on EPA’s alleged failure to consider intervenors’ treaty rights, arguments that petitioners lacked standing to make. True, we never reached the Tribes’ arguments, but that is immaterial. By giving us alternative bases for resolving the case — bases petitioners were unable to offer — Tribal Intervenors contributed to the “ ‘proper implementation and administration of the act or otherwise serve[d] the public interest.’ ” Sierra Club v. EPA
EPA’s view, embraced by the dissent— that we should allow fee shifting only where an intervenor affected the outcome of a case as determined after the fact— would discourage interventions that play a useful role. “It is usually impossible to determine in advance of trial which issues will be reached or which parties will play pivotal roles in the course of the litigation. To retrospectively deny attorney’s fees because an issue is not considered or because a party’s participation proves unnecessary would have the effect of discouraging the interventiоn of what in future cases may be essential parties.” Seattle Sch. Dist. No. 1 v. Washington,
Of course, while ineentivizing interventions that contribute to the proper administration of the Act, we want to be sure that we are not simultaneously encouraging fee-seeking interventions. But we believe that courts have all the tools they need to prevent that from happening. First, to intervene a party must have standing in its own right, see Military Toxics Project v. EPA,
II.
The dissent argues that Tribal Intervenors’ challenge was “based on a different claim for relief.” Dissenting Op. at 1287. The dissent is mistaken. Petitioners challenged two regulations, the Delisting Rule, 70 Fed.Reg. 15,994 (Mar. 29, 2005), and the Clean Air Mercury Rule, 70 Fed.Reg. 28,606 (May 18, 2005), claiming that both violated Clean Air Act section 112. In
Under American Petroleum, these arguments are all in support of a single claim. There, petitioners challenged EPA regulations on five separate grounds. Am. Petroleum Inst.,
According to the dissent, “[i]t is difficult to see how an argument is especially helpful ... when it in no way contributes to the resolution of a case.” Dissenting Op. at 1287 (internal quotation marks omitted). But our case law is to the contrary. In American Petroleum, we awarded fees for each argument not reached, including the narrowest, finding that none was “so frivolous that all time spent on it was unreasonable.”
Here, had we not disposed of the case on the basis of petitioners’ contentions, the Tribes’ arguments, which sought to force EPA to comply with its Clean Air Act obligations, would, like petitioners’ withdrawn arguments in Alabama Power, have “contributed importantly to the administration of the Act,”
Further attempting to marginalize Tribal Intervenors’ contribution, the dissent criticizes them for “br[inging] a narrow, fact-based challenge to an ancillary regulation,” unlikely to. “play a critical role in this cаse.” Dissenting Op. at 1287. But this conflates the Tribes’ role as intervenors, in which they challenged the Delisting and Mercury Rules, and their role as petitioners, in which they challenged a thud regulation, the ancillary Reconsideration Rule. Tribal Intervenors seek no fees for the latter. They seek fees only with respect to the vacatur of the Delisting and Mercury Rules — the regulations lying at the very heart of this case. See Tribal Fees Br. 3-4.
The dissent claims that today’s decision takes an “extraordinary step.” Dissenting Op. at 1284. Again, the dissent is mistaken. Other courts have awarded fees in similar circumstanсes. For instance, the Fourth Circuit rejected an outcome-based rule (like the one urged by the dissent), awarding fees to intervenors who, though ultimately found to lack standing, had nonetheless “play[ed] an active role” in the litigation. Shaw,
III.
Tribal Intervenors seek a total of $305,389 in fees and costs. EPA insists that the request is excessive and should be reduced to $64,793. Rather than sorting through the parties’ competing claims, we direct the question to our Appellate Mediation Program. See, e.g., Clifton Power Corp. v. FERC, No. 94-1775 (D.C.Cir. Feb. 12, 1997) (per curiam order referring consideration of motion for attorney fees to the Appellate Mediation Division).
So ordered.
Dissenting Opinion
dissenting:
In today’s decision, the court takes the extraordinary step of awarding fees to Tribal Intervenors, who intervened on the side of a petitioner in a Clean Air Act challenge and offered an argument that оther petitioners lacked standing to make. As the court acknowledges, we never reached the Tribal Intervenors’ claim and their argument had no effect on the out
Section 807(f) of the Clean Air Act, 42 U.S.C. § 7607(f), permits the award of attorneys’ fees in certain proceedings “whenever [the court] determines that such award is аppropriate.” In an early case dealing with this fee provision, Judge Wilkey warned that such broad and ill-defined authority was likely to lead to an “all-but-the-frivolous” standard — a result he considered deeply at odds with Congressional intent. Alabama Power v. Gorsuch,
In Shaw, for example, the court concluded that a fee award was appropriate in the exceptionаl circumstances where intervenors, deprived of standing during the course of the litigation, had taken an active, unique role in the litigation and contributed to its success. Shaw,
Apparently, the court opts for such a radical departure simply because it can. The court says our precedent — which has consistently imposed the more exacting “significant role” standard- — -is distinguishable. That much is true. In Alabama Power v. Gorsuch,
The broad grant of statutory discretion in Section 307(f) has usually been interpreted as a narrow exception to the traditional rule that only prevailing parties are entitled to fees. “Section 307(f) was meant to expand the class of parties eligible for fee awards from prevailing parties to partially prevailing parties — parties achieving some success ...” Ruckelshaus v. Sierra Club,
We have held that the court need not parse the success of each separate argument in support of a single claim when determining eligibility for fees. See Am. Petroleum Inst. v. EPA
The court attempts to justify its decision by claiming that denying attorneys’ fees to Tribal Intervenors would discourage future intervenors from bringing “useful” claims (Op. at 1281). Its concern is overblown. While it is admittedly impossible for parties to determine in advance what issues will be reached by the court, it is entirely possible for a litigant to make a reasonable estimation of how large an impact his issue is likely to have on the litigation, in light of the other challenges being raised. See Seattle Sch. Dist. No. 1,
The court also claims that Tribal Intervenors assisted the process by providing an alternative basis for its disposition (Op. at 1283). It is difficult to see how an argument is “especially helpful,” however, when it in no way contributes to the resolution of a case. In fact, tangential arguments piled on by self-interested intervenors force the agency — and the court — to waste valuable resources evaluating and addressing arguments that will have no impact on the court’s ultimate decision. The Court seems to forget that the EPA must respond to all arguments lest it be deemed to have conceded them. Here, the EPA spent twenty-four pages of its reply brief addressing arguments made by Tribal Intervenors, wasting valuable resources that might otherwise have been devoted to rebuttal of the petitioners’ much more substantial- — -and ultimately victorious— claims. Were Tribal Intervenors’ arguments costless, it might be tempting to grant their request. However, “we live in a world of scarce rеsources and the question inevitably becomes how best to allocate them.” Alabama Power,
The court seeks to reassure us that its holding will not encourage fee-seeking interventions, pointing out “all the tools” courts have to prevent that from happening (Op. at 1282). The tools, though, turn out to be few and frail. The majority overstates the value of the standing requirement because it fails to recognize the substantial practical difference between participating in litigation as a petitioner or as an intervenor. Our litigation system forces the petitioner to literally “put his money where his mouth is” by bearing all costs associated with his suit. Even where Congress departs from the “American rule” by allowing recovery of attorneys’ fees, a petitioner must attain some success on the merits of its claim to warrant reimbursement. Ruckelshaus,
The majority conflates, and ultimately eviscerates, the bar against “frivolous” litigation and the court’s discretion to determine what is “appropriate.” Under the court’s newly minted standard, it is no impediment to a fee award that an intеrvenor’s argument is irrelevant to the outcome, nonsubstantive, and does nothing to strengthen the primary legal position. The court defines “appropriate” so broadly that an intervenor is now entitled to fees unless the challenge is patently frivolous.
It is hard to see what is inappropriate about requiring intervenors to carefully consider what is likely to enhance and promote the purposes of any given litigative effort. Creating a risk — even a small one — that intervenors will be required to bear their own costs will at least force them tо undertake a basic cost-benefit analysis to determine when to avoid spending money. See Richard L. Revesz and Michael A. Livermore, Retaking Rationality 12 (2008) (“In the absence of an obvious endpoint [for spending], we need a mechanism that tells us when to stop spending money. Cost-benefit analysis is that mechanism[.]”). And if parties want to pile on just for the sake of piling on — to pursue some frolic of their own — why would it be inappropriate to require them to pay the costs of that indulgence?
Since preserving the public fisc from unreasonable depredations also serves the public interest, I would not be so eager to find new ways to waste Other People’s Money.
I dissent.
