RUCKELSHAUS, ADMINISTRATOR, ENVIRONMENTAL PROTECTION AGENCY v. SIERRA CLUB еt al.
No. 82-242
Supreme Court of the United States
Argued April 25, 1983—Decided July 1, 1983
463 U.S. 680
Harold R. Tyler, Jr., argued the cause for respondents. Bingham Kennedy and Barry J. Trilling filed a brief for respondent Environmental Defense Fund. Joseph J. Brecher filed a brief for respondent Sierra Club.
JUSTICE REHNQUIST delivered the opinion of the Court.
In 1979, following a year of study and public comment, the Environmental Protection Agency (EPA) promulgated standards limiting the emission of sulfur dioxide by coal-burning powerplants. Both respondents in this case—the Environmental Defense Fund (EDF) and the Sierra Club—filed petitions for review of the agency‘s action in the United States Court of Appeals for the District of Columbia Circuit. EDF argued that the standards promulgated by the EPA were tainted by the agency‘s ex parte contacts with representatives of private industry, while the Sierra Club contended that EPA lacked authority under the Clean Air Act to issue the type of standards that it did. In a lengthy opinion, the Court of Appeals rejected all the claims of both EDF and the Sierra Club. Sierra Club v. Costle, 211 U. S. App. D. C. 336, 657 F. 2d 298 (1981).
Notwithstanding their lack of success on the merits, EDF and the Sierra Club filed a request for attorney‘s fees incurred in the Sierra Club action. They relied on
I
The question presented by this case is whether it is “appropriate,” within the meaning of
A
Section 307(f) provides only that:
“In any judicial proceeding under this section, the court may award costs of litigation (including reasonable attor-
ney and expert witness fees) whenever it determines that such award is appropriate.” 91 Stat. 777, 42 U. S. C. § 7607(f) (1976 ed., Supp. V) (emphasis added).
It is difficult to draw any meaningful guidance from
B
Our basic point of reference is the “American Rule,” see Alyeska Pipeline Co. v. Wilderness Society, 421 U. S. 240,
While the foregoing treatments of fee-shifting differ in many respects, they reflect one consistent, established rule: a successful party need not pay its unsuccessful adversary‘s fees. The uniform acceptance of this rule reflects, at least in part, intuitive notions of fairness to litigants. Put simply, ordinary conceptions of just returns reject the idea that a party who wrongly charges someone with violations of the law should be able to force that defendant to pay the costs of the wholly unsuccessful suit against it. Before we will conclude Congress abandoned this established principle that a successful party need not pay its unsuccessful adversary‘s fees—rooted as it is in intuitive notions of fairness and widely manifested in numerous different contexts—a clear showing that this result was intended is required.7
Also relevant in deciding whether to accept the reading of “appropriate” urged by respondents is the fact that
Given all the foregoing, we fail to find in
II
Respondents make relatively little effort to dispute much of the foregoing, devoting their principal attention to the legislative history of
“The committee bill also contains express authority for the courts to award attorneys [sic] fees and expert witness fees in two situations. The judicial review proceedings under section 307 of the act when the court determines such award is appropriate [sic].
“In the case of the section 307 judicial review litigation, the purposes of the authority to award fees are not only to discourage frivolous litigation, but also to encourage litigation which will assure proper implementation and administration of the act or otherwise serve the public interest. The committee did not intend that the court‘s discretion to award fees under this provision should be restricted to cases in which the party sеeking fees was the ‘prevailing party.’ In fact, such an amendment was expressly rejected by the committee, largely on the grounds set forth in NRDC v. EPA, 484 F. 2d 1331, 1338 [sic] (1st Cir. 1973).” H. R. Rep. No. 95-294, p. 337 (1977) (emphasis added).
In determining the meaning of the Senate Report‘s rejection of the “prevailing party” standard it first is necessary to ascertain what this standard was understood to mean. When
These various interpretations of the “prevailing party” standard provide a ready, and quite sensible, explanation for the Senate Report‘s discussion of
This view of the “when appropriate” standard is confirmed by the language of a forerunner of
“(d) In any judicial proceeding under this Act in which the United States . . . is a party . . . any party other than the United States which prevails in such action shall recover from the United States the reasonable costs for such party‘s participation in such proceeding, including reasonable attorney‘s fees. . . . In any case in which such party prevails in part, the court shall have discretion to award such reasonable costs.” (Emphasis added.)
This provision was described, in the legislative history, as follows:
“This section amends section 307 of existing law. In any suit in which the United States is a party, any prevailing party . . . shall recover all reasonable costs of its participation in such proceeding. Where such party prevails in part, the court may award reasonable costs.”10
It is clear from the distinction drawn in these two passages that—as the case law discussed above fairly indicated—Congrеss understood “prevailing party” and “partially prevailing party” as two quite different things, with the former encompassing only a limited category of parties that achieved success in their lawsuits. The “prevailing party” category was thought not to extend to parties who prevailed only in part.
Given this, the House Report‘s statement that “the court‘s discretion . . . should [not] be restricted to cases in which the party seeking fees was the ‘prevailing party,‘” H. R. Rep. No. 95-294, p. 337 (1977) (emphasis added), provides little, if any, support for the theory that completely unsuccessful plaintiffs may receive fees. Rather, the sentence, fairly read, means only that fees may be awarded to all parties who prevail in part as well as those who prevail in full: it rejects the restrictive notions of “prevailing party” adopted
This straightforward reading of the House Report finds support in Natural Resources Defense Council, Inc. v. EPA, 484 F. 2d 1331 (CA1 1973), cited in the Report. There, the court considered whether fees should be denied under
The foregoing reading of
In addition, the relation between
Given the foregoing, respondents’ argument that fee awards are available even to unsuccessful plaintiffs encounters yet further difficulties. Section 304 suits may be brought against private businesses by any private citizen. Such suits frequently involve novel legal theories, theories that the EPA has rejected. After protracted litigation requiring payment of expensive legal fees and associated costs in both money and manpower, the private defendant may well succeed in refuting each charge against it—proving it was in complete compliance with every detail of the Clean Air Act. Yet, under resрondents’ view of the Act, the defendant‘s reward could be a second lawyer‘s bill—this one payable to those who wrongly accused it of violating the law. We simply do not believe that Congress would have intended such a result without clearly saying so.12
Finally, as shown in the margin,13 the central purpose of
III
We conclude, therefore, that the language and legislative history of
Reversed.
JUSTICE STEVENS, with whom JUSTICE BRENNAN, JUSTICE MARSHALL, and JUSTICE BLACKMUN join, dissenting.
Even though the Court may regard the practice as “novel, costly, and intuitively unsatisfying,” ante, at 687, n. 8, it is not at all unusual for a government to pay an unsuccessful adversary‘s counsel fees; indeed, in the largest category of litigation in which governments engage—criminal litigation—they do so routinely.1 The question presented in this case is whether Congress has authorized any such award in a challenge to rulemaking by the Environmental Protection Agency. Today the Court holds that, no matter how exceptional the circumstances may be, Congress intended such awards to be made only to prevailing parties. But in
I
The Court gives a one-dimensional description of the role played by respondents, Sierra Club and the Environmental Defense Fund, in the Sierra Club v. Costle, 211 U. S. App. D. C. 336, 657 F. 2d 298 (1981), litigation: they failed to obtain any of the relief they requested. It is necessary to examine this uniquely important and complex litigation more thoroughly in order to illuminate the other considerations that are relevant to an award of attorney‘s fees under
The millions of tons of sulfur dioxide emitted by coal-burning powerplants constitute a major source of air pollution in the United States. One method of reducing sulfur dioxide emissions is to install flue gas desulfurization equipment; another is to burn coal with lower sulfur content. In 1977 Congress amended the section of the Clean Air Act governing emission standards for newly built or modified stationary pollution sources, including powerplants. These amendments raised significant questions regarding the pollution control methods that would be required in new powerplants and the levels of sulfur dioxide emissions that would result across the Nation. Section 111, as amended, required EPA to establish standards setting an emission ceiling for each category of new sources and also requiring each such plant to achieve a “percentage reduction” in thе emissions that would have resulted from the use of untreated fuels.2 In 1979, following a lengthy rulemaking proceeding under the Act, the EPA promulgated a controversial new standard for sulfur dioxide emissions by coal-burning powerplants. The standard
The provisions of EPA‘s sulfur dioxide standard were interrelated. The Clean Air Act requires EPA to engage in a balancing of factors: “a standard of performance shall reflect the degree of emission limitation and the percentage reduction achievable through application of the best technological system of continuous emission reduction which (taking into consideration the cost of achieving such emission reduction, any nonair quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated.”
A number of parties filed petitions for review of the EPA‘s action in the United States Court of Appeals for the District of Columbia Circuit. As the Court of Appeals wrote: “On
These complex, interrelated contentions presented the Court of Appeals with an immense judicial task.
“In formulating the regulation, EPA had prepared 120 studies, collected 400 items of reference literature, received almost 1,400 comments, written 650 letters and 200 interagency memoranda, held over 50 meetings and substantive telephone conversations with the public, and conducted four days of public hearings. The statement accompanying the regulation took up to 43 pages with triple columns and single-spaced type. Approximately 700 pages of briefs were submitted to this court on the merits of thе case. The joint appendix contained 5,620
pages, bound in 12 volumes. The certified index to the record listed over 2,520 submissions.” Sierra Club v. Gorsuch, 217 U. S. App. D. C. 180, 187, 672 F. 2d 33, 40 (1982).5
The Court of Appeals rejected the petitions for review filed by the respondents in this case, the Sierra Club and the Environmental Defense Fund, although not entirely for the reasons stated by EPA; it also rejected the contentions of the utilities. The opinion, 256 pages in printed slip opinion form and 132 pages in the Federal Reporter, ended with “a short conclusion: the rule is reasonable.” 211 U. S. App. D. C., at 448, 657 F. 2d, at 410.6
After further proceedings, the Court of Appeals unanimously decided that it was appropriate to award attorney‘s fees to both respondents.7 It first concluded that
Sierra Club, the court noted, was the only party to brief and advocate opposition to a variablе standard, an issue conceded by EPA to be critically important. Had this issue not been debated, moreover, the outcome of other related issues in the case—including the appropriateness of the 1.2 pounds/MBtu standard and the technological feasibility of the 90% reduction requirement—might have been affected. The court expressly stated: “[T]he argument pressed most intensely by the utilities, that a 90% reduction in sulfur emissions was technologically infeasible given the state of antipollution technology, would have been far less completely aired without Sierra Club‘s participation. The various parts of a complex rule like this one do not travel alone, and the court‘s education on each part of the rule informed its decisions on other parts.” Id., at 188, 672 F. 2d, at 41.9
The Court of Appeals explained that, even though respondents were not “prevailing parties,” either in whole or in part,
“It was absolutely essential in a case of this dimension that this court have expert and articulate spokesmen for environmental as well as industrial interests. The rulemaking process not only involved highly technical and complex data, but controversial considerations of public policy. Given the complexity of the subject matter, without competent representatives of environmental interests, the process of judicial review might have been fatally skewed.” Ibid.
The then EPA Administrator disputed the amount of the fee award in the Court of Appeals, but petitioner does not contest its reasonableness before this Court. Petitioner also apparently does not assert that, if it is ever appropriate to award fees to a losing party, the Court of Appeals improperly exercised its discretion to make an award in this case.10 Rather, petitioner asserts as a matter of law that
II
The language of
“In any judicial proceeding under this section, the court may award costs of litigation (including reasonable at
torney and expert witness fees) whenever it determines that such award is appropriate.” 42 U. S. C. § 7607(f) (1976 ed., Supp. V).
The challenge to the sulfur dioxide emission standard in the Court of Appeals was unquestionably a “judicial proceeding under”
As the Court of Appeals correctly observed, the language of
Nevertheless the Court today asserts that a statute which does not refer to “prevailing parties” actually does refer to “prevailing parties.” It does so by invoking the “American Rule” that losing parties do not pay the attorney‘s fees of their successful opponents, and by asserting that “virtually every one of the more than 150 existing federal fee-shifting provisions predicates fee awards on some success by the claimant.” Ante, at 684. Factually, as the Court‘s own opinion makes clear, this is something of an overstatement. After all, the Court notes that 16 federal statutes and
III
The legislative history, like the text of the statute, supports the conclusion that Congress intended to allow attorney‘s fees not only to prevailing parties but also, in appropriate circumstances, to nonprevailing parties. In 1977, when
The Senate Report explained that, under the different provision the Committee had chosen to adopt, fees and costs may be awarded “whenever the court determines that such an award is appropriate.”15 It is clear from the House Report that the language of
“In the case of the section 307 judicial review litigation, the purposes of the authority to award fees are not only to discourage frivolous litigation, but also to encourage litigation which will assure proper implementation and administration of the act or otherwise serve the public interest. The committee did not intend that the court‘s discretion to award fees under this provision should be restricted to cases in which the party seeking fees was the ‘prevailing party‘. In fact, such an amendment was expressly rejected by the committee, largely on the grounds set forth in NRDC v. EPA, 484 F. 2d 1331, 1388 (1st Cir. 1973).” H. R. Rep. No. 95-294, p. 337 (1977), 4 1977 Leg. Hist., at 2804 (emphasis supplied).16
The cited portion of the opinion of the First Circuit in Natural Resources Defense Council, Inc. v. EPA, 484 F. 2d 1331, 1338 (1973),17 sets forth the test of whether the party seeking fees has contributed to the goals of the environmental statute—a different test from whether it has prevailed. Judge Campbell wrote:
“The authorizing language of
§ 304(d) permits an award ‘to any party, whenever the court determines such award is appropriate.’ This suggests greater latitude even than is found in28 U. S. C. § 2412 , which authorizes awards to ‘the prevailing party‘. We are at liberty to consider not merely ‘who won’ but what benefits wereconferred. The purpose of an award of costs and fees is not mainly punitive. It is to allocate the costs of litigation equitably, to encourage the achievement of statutory goals. When the government is attempting to carry out a program of such vast and unchartered dimensions, there are roles for both the official agency and a private watchdog. The legislation is itself novel and complex. Given the implementation dates, its early interpretation is desirable. It is our impression, overall, that petitioners, in their watchdog role, have performed a service.” Ibid.
In the NRDC case the party receiving the fee award had prevailed on some issues. The court noted that even those challenges that were “not sustained, were mainly constructive and reasonable.” Ibid.18 Today the majority seizes on this fact in an attempt to explain away the clear intention stated in the Senate Report. But the Committee adopted the reasoning, not the facts, of the opinion in NRDC v. EPA.
IV
Unpersuaded by the statutory language and legislative history, the Court relies heavily on two other propositions. First, it notes, the doctrine of sovereign immunity requires that any statute authorizing the payment of fees and costs by the United States must be strictly construed. Ante, at 685-686. But this general statement does little to support the Court‘s position in this case. Congress clearly intended to authorize fees in certain circumstances, see n. 16, supra, and left it to the courts to ascertain which cases would be “appro
As originally proposed in 1970,
It by no means follows, however, that Congress intended, by using the word “appropriate,” to assure only that successful parties in these two situations would be eligible for fees.23 Indeed, such an interpretation is contradicted by the open-ended language used to describe
When the 1977 Act was passed, Congress made clear that the courts had the power to award fees and costs in actions brought in the courts of appeals under
The majority‘s position is simple but illogical: Congress in 1977 used the term “whenever [the court of appeals] determines that such an award is appropriate” to mean when the plaintiff is a “prevailing party” or “partially prevailing party.” Ante, at 689. It would have been much simpler for Congress to use the language “prevailing party” and “partially prevailing party” if that is precisely what it meant. Instead, it expressly rejected such language,27 which it had previously used in countless other statutes, see n. 12, supra, and chose to authorize the court to award fees “whenever it determines that such an award is appropriate.”
Accordingly, I cannot agree with the Court‘s interpretation of the statutory language. Congress decided that in exceptional circumstances it might be “appropriate” to award attorney‘s fees to nonprevailing parties. Of course, as the Court of Appeals recognized, it would be unreasonable to presume, against the background of attorney‘s fees statutes generally, that Congress intended fees to be awarded to every nonprevailing party who has litigated a nonfrivolous challenge to an EPA regulation. See 217 U. S. App. D. C., at 183, n. 4, 185, 189, n. 10, 672 F. 2d, at 36, n. 4, 38, 42,
As the Court of Appeals recognized in this case,
Regardless of our views about the wisdom of the choice Congress made, we have a plain duty to accept it. TVA v. Hill, 437 U. S. 153, 194-195 (1978). Congress consciously selected a particular course: that a party who seeks judicial review of an EPA regulation may be entitled to compensation from the Government, when the court deems it “appropriate,” even if the reviewing court determines that there is no ground for disturbing the agency‘s conclusions. I would construe this category of “appropriate” cases to be narrow; it is wrong, however, to read it out of the statute altogether. It is not the function of the courts to “sit as a committee of review, nor are we vested with the power of veto.” Ibid.29
I therefore respectfully dissent.
Notes
“We reach our decision after interminable record searching (and considerable soul searching). We have read the record with as hard a look as mortal judges can probably give its thousands of pages. We have adopted a simple and straight-forward standard of review, probed the agency‘s rationale, studied its references (and those of appellants), endeavored to understand them where they were intelligible (parts were simply impenetrable), and on close questions given the agency the benefit of the doubt out of deference for the terrible complexity of its job.” 211 U. S. App. D. C., at 448, 657 F. 2d, at 410.
“The Courts should recognize that in bringing legitimate actions under this section citizens would be performing a public service and in such instances the courts should award costs of litigation to such party. This should extend to plaintiffs in actions which result in successful abatement but do not reach a verdict. For instance, if as a result of a citizen proceeding and before a verdict is issued, a defendant abated a violation, the court may award litigation expenses borne by the plaintiffs in prosecuting such actions.” S. Rep. No. 91-1196, p. 38 (emphasis added).
The approval of fee awаrds in “legitimate” actions offers respondents little comfort: “legitimate” means “being exactly as proposed: neither spurious nor false,” which does not describe respondents’ claims in this case. Respondents contend, however, that Congress intended the term “appropriate” to encompass situations beyond those mentioned in the legislative history, and, therefore, that the term reaches even totally unsuccessful actions. This is, of course, possible, but not likely. Congress found it necessary to explicitly state that the term appropriate “extended” to suits that forced defendants to abandon illegal conduct, although without a formal court order; this was no doubt viewed as a somewhat expansive innovation, since, under then-controlling law, see infra, some courts awarded fees only to parties formally prevailing in court. We are unpersuaded by the argument that this same Congress was so sure that “appropriate” also would extend to the far more novel, costly, and intuitively unsatisfying result of awarding fees to unsuccessful parties that it did not bother to mention the fact. If Congress had intended the far-reaching result urged by respondents, it plainly would have said so, as is demonstrated by Cоngress’ careful statement that a less sweeping innovation was adopted. The Court of Appeals made clear that it was adopting a stringent standard. Indeed, it noted that even a prevailing or substantially prevailing party might not substantially contribute to the goals of the Clean Air Act, and might therefore not be entitled to attorney‘s fees. 217 U. S. App. D. C., at 185, n. 8, 672 F. 2d, at 38, n. 8.
In similar fashion, the Environmental Defense Fund played a critical role in informing the court‘s deliberations on a substantial issue—alleged ex parte contacts in the rulemaking process. EDF‘s substantial contribution included factual research, legal analysis, and the disclosure of Government documents without which, according to the court, “our deliberations would have been less enriched and more time consuming.” 217 U. S. App. D. C., at 188, 672 F. 2d, at 41.
For statutes limiting fees to “substantially prevailing” parties, see, e. g.,
For statutes requiring that a party be successful, see
The principal response to these concerns was as follows:
“The Senator from Nebraska raised the question of possible harassing suits by citizens. This the committee attempted to discourage by providing that the costs of litigation—including counsel fees—may be awarded by the courts to the defendants in such cases, so that the citizen who brings a harassing suit is subject not only to the loss of his own costs of litigation, but to the burden of bearing the costs of the parties against whom he has brought the suit in the first instance. I doubt very much that individual citizens would lightly engage this possibility.” Id., at 280.
This point was repeated in the Senate Report:
“Concern was expressed that some lawyers would use section 304 to bring frivolous and harassing actions. The Committee has added a key element in providing that the courts may award costs of litigation, including reasonable attorney and expert witness fees, whenever the court determines that such action is in the public interest. The court could thus award costs of litigation to defendants where the litigation was obviously frivolous or harassing. This should have the effect of discouraging abuse of this provision, while at the same time encouraging the quality of the actions that will be brought.” S. Rep. No. 91-1196, p. 38 (1970). If one assumes, as apparently the Court does, that the word “appropriate” is ambiguous, ante, at 683, then I would think it necessary to examine the legislative history of each statute in which the word has been used in order to ascertain its meaning. The Court, however, relying on the legislative history of one statute,
The Clean Air Act Amendments passed by the Senate the previous year, S. 3219, had similarly required an award of fees for prevailing parties and further provided that, in any case “in which such party prevails in part, the court shall have discretion to award such reasonable costs.” S. 3219, § 35, 94th Cong., 2d Sess. (1976), 6 1977 Leg. Hist., at 4689. At conference,
The majority places considerable weight on the statement made in a Staff Report that language actually adopted in
“The conference report [
The “narrower House provision” seems to be the provision for awarding fees to the targets of unreasonable EPA enforcement actions. This section was codified as part of
“The court, in issuing any final order in any action brought pursuant to subsection (a) of this section, may award costs of litigation (including reasonable attorney and expert witness fees) to any party, whenever the court determines such award is appropriate.”
“The Courts should recognize that in bringing legitimate actions under this section citizens would be performing a public service and in such instances the courts should award costs of litigation to such party. This should extend to plaintiffs in actions which result in successful abatement but do not reach a verdict. For instance, if as a result of a citizen proceeding and before a verdict is issued, a defendant abated a violation, the court may award litigation expenses borne by the plaintiffs in prosecuting such actions.” S. Rep. No. 91-1196, p. 38 (1970).
The majority suggests, however, that Congress decided not to adopt the “prevailing party” standard because it was aware of cases denying “prevailing party” status unless the plaintiff had prevailed “as to a substantial part of the litigation” or had succeeded on the “central issue.” Ante, at 688. But the House Report‘s citation of Natural Resources Defense Council, Inc. v. EPA, 484 F. 2d 1331 (CA1 1973), casts doubt on that contention.
