Lead Opinion
Opinion for the court filed by Circuit Judge DYK.
Dissenting opinion filed by Circuit Judge BRYSON.
Janice F. Willis (“Willis”), an attorney, appeals the decision of the Personnel Appeals Board (the “Board”) of the United States Government Accountability Office (“GAO”) declining under the fee-shifting provision of the Civil Service Reform Act, 5 U.S.C. § 7701(g)(1), to award the full amount of attorney’s fees requested by Willis and her former client Sandra P. Davis (“Davis”). Davis has not appealed. Because Willis lacks standing to contest the Board’s decision, we dismiss the appeal.
BACKGROUND
Willis initially represented Davis, who was employed by GAO, in a proceeding before the Board asserting a number of claims of unlawful conduct by GAO personnel. After discovery and an evidentiary hearing, Davis terminated Willis and retained Nora V. Kelly (“Kelly”). On July 26, 2002, the Administrative Judge issued an initial decision rejecting all but one of Davis’ claims — the claim that Davis’ performance appraisals had been lowered in a manner inconsistent with GAO’s published orders in violation of 5 U.S.C. § 2302(b)(12). The Administrative Judge ruled in Davis’ favor on the remaining claim, ordering GAO to increase Davis’ performance appraisals and awarding Davis back pay in the amount she would have received had the appraisals been conducted properly. Both GAO and Davis appealed to the full Board; Kelly handled Davis’ appeal. The full Board affirmed the initial decision in a final decision issued July 11, 2003.
After issuance of the Board’s final decision, Davis filed a request for attorney’s fees pursuant to 5 U.S.C. § 7701(g)(1). Davis requested $128,867.17 for (1) 335.25 hours representing the pre-hearing portion of Willis’ work, and (2) Kelly’s work during the appellate stage of the litigation. Davis declined to request $63,325.00 that Willis billed Davis for Willis’ work during the evidentiary hearing because, as Davis explained in her fee request, she viewed the amounts billed as excessive. The Administrative Judge granted Willis’ motion to intervene in the proceedings, on the condition that Willis could not request any fees
The Administrative Judge held that Davis’ success qualified her as a “prevailing party” entitled to attorney’s fees under the statute. With respect to the claims advanced by both Davis and Willis, the Administrative Judge rejected the contention that Willis’ fees should be calculated at an hourly rate of $335.00, which was substantially higher than the $150.00 hourly rate Willis actually charged Davis, and discounted a number of the hours claimed for Willis’ work as duplicative, insufficiently documented, or unnecessary. The Administrative Judge reduced the total number of hours Davis claimed for Willis’ work by 20 percent because of the inconsistent quality of Willis’ pretrial filings and the fact that the majority of Davis’ claims were ultimately rejected. The Administrative Judge also rejected Willis’ separate request for additional amounts not requested by Davis on the grounds that her additional request violated the express condition in the Administrative Judge’s order allowing Willis to intervene, and that “Ms. Willis, who could not be characterized as a ‘prevailing petitioner’ [under the statute and regulations], had no right to file an independent request for attorney’s fees.” Davis v. U.S. General Accounting Office, Nos. 00-05, 00-08, slip op. at 24 (G.A.O.P.A.B. June 15, 2004). Ultimately, the Administrative Judge awarded Davis $46,345.60 in fees.
Both Davis and Willis appealed to the Board. Davis argued that that the Administrative Judge erred in reducing the amount that she claimed. Willis argued that the Administrative Judge erred in rejecting her separate claim for additional compensation attributable to her work during the evidentiary hearing. In a final decision issued March 2, 2005, the Board affirmed, rejecting Davis’ and Willis’ contentions and adopting the Administrative Judge’s findings of fact and conclusions of law. With respect to Willis’ request for additional fees not claimed by Davis, the Board concluded that “Ms. Willis has no independent right to file a Request for Attorney Fees because 4 C.F.R. § 28.89 provides that ‘the petitioner, if he or she is the prevailing party, may submit a request for the award of reasonable attorney’s fees and costs.’ ” Davis v. U.S. General Accounting Office, Nos. 00-05, 00-08, slip op. at 12 (G.A.O.P.A.B. Mar. 2, 2005).
Willis alone appealed to this court. We have jurisdiction pursuant to 31 U.S.C. § 755(a).
DISCUSSION
The necessary threshold question in this case is whether Willis has standing to appeal the Board’s decision to this court. Willis’ primary theory of standing is that she has a right to receive fee payments under the statute separate and apart from her client’s right to fees. This theory of standing is essential to Willis’ claim for fees for the trial work' — fees that were not included in Davis’ fee request. Alternatively, Willis may be arguing that she has the right to assert on appeal her client’s right to the recovery of fees that were claimed before the Board but not allowed. In either event, we conclude that Willis lacks standing.
I
We first address Willis’ contention that she has standing because she has an independent right to claim fees under the statute. Because Article III standing implicates the court’s constitutional authority to adjudicate disputes, it can be
Article III standing is required at all stages of federal litigation, including appeals. Korczak v. Sedeman,
To establish Article III standing, Willis must allege that she has suffered an “ ‘injury in fact’ — an invasion of a legally protected interest .... ” Lujan v. Defenders of Wildlife,
However, a different rule applies where the plaintiff is independently seeking monetary relief and the APA does not apply. In such circumstances, we have held that the plaintiff must be within the class of persons legally protected by the statute under which the individual seeks relief. For example, in Ortho Pharmaceutical Corp. v. Genetics Institute, Inc., 52 F.3d 1026, 1030-31 (Fed.Cir.1995), we held that nonexclusive patent licensees lack Article III standing to sue for infringement because “economic injury alone does not provide standing to sue under the patent statute .... a licensee must hold some of the proprietary sticks from the bundle of patent rights,” otherwise the licensee “suffers no legal injury from infringement and, thus, has no standing .... ” See also Intellectual Prop. Dev., Inc. v. TCI Cablevision of Cal., Inc.,
Thus, Willis lacks independent standing unless she has a right to claim fees under the statute.
II
There is no separate attorney’s fees statute applicable to proceedings before the GAO Board. However, Congress, in 31 U.S.C. § 753(e)(1), made section 7701(g), which governs the recovery of attorney’s fees in actions before the Merit Systems Protection Board, applicable to actions before the GAO Board. Section 753(e)(1) provides that “[t]he [GAO Personnel Appeals] Board shall prescribe regulations ... providing for officer and em
Section 7701(g), provides:
[T]he Board ... may require payment by the agency involved of reasonable attorney fees incurred by an employee or applicant for employment if the employee or applicant is the prevailing party and the Board ... determines that payment by the agency is warranted in the interest of justice ....
5 U.S.C. § 7701(g)(1) (2000).
Thus, the question is whether section 7701(g) grants attorneys a legally protected interest independently to assert a claim for a fee award. We conclude that it does not.
In Evans v. Jeff D.,
In addressing the permissibility of the fee waiver, the Supreme Court considered whether the right to claim fees belonged to the prevailing party or the attorney. The Court held that “the language of [section 1988(b) ], as well as its legislative history, indicated that Congress bestowed on the ‘prevailing party’ (generally plaintiffs) a statutory eligibility for a discretionary award of attorney’s fees .... ” Evans,
We perceive only three possible differences between Evans and this case. First, Evans arose under a different statute, 42 U.S.C. § 1988(b), rather than 5 U.S.C. § 7701(g)(1), which is involved here. For
The second possible difference between this case and Evans is that Evans did not directly involve a claim by the attorney to assert the fee award, but rather presented a claim by the prevailing party that waivers of fee claims in settlements were not permissible under section 1988(b). But we are bound not only by the Court’s ultimate holding, but also by its underlying reasoning. In holding that the fee could be waived, the Court clearly concluded that the fee award claim belonged to the client rather than the attorney. In McAlear, we specifically addressed the question of whether an attorney could continue to claim fees pursuant to section 7701(g)(1) after the client waived the right to seek fees in a settlement agreement.
The third possible distinction between this case and Evans is that in Evans, the client explicitly surrendered the right to a fee award by settlement whereas here there was no settlement, only the failure by the client to pursue a larger award in the first instance and the failure by the client to appeal from the award of a lesser amount than the client originally claimed. Again, we do not see how this distinction suggests a different outcome. If the client can compromise the fee award, the client can equally decline to claim it in the first instance or to pursue it on appeal. The client’s lack of interest does not transfer the client’s right to the attorney.
We conclude that Evans establishes that only the prevailing party and not the attorney has the right to assert a claim for attorney’s fees under the statute.
Nothing in our decision in Jensen v. Department of Transportation,
In any event, Jensen does not suggest that the attorney has a right to claim the fees in the first instance. Under fee-shifting statutes in general, there is a distinction between the party’s entitlement to claim an award of fees and the attorney’s right to receipt of fees that are awarded.
[T]he attorney remains at the mercy of the client, who can either demand attorneys’ fees from the defendant, or not, as he chooses. If the client chooses not to ask for the fees, the attorney has no standing to request them.... Of course, the attorney cannot then look to the defendant for payment.... On the other hand, ... the client himself is not entitled to keep the fees which are measured by and paid on account of the attorneys’ services.
Virani,
IV
This leads to the second possible basis of standing — Willis’ assertion that she may pursue Davis’ claim to the fee award. Generally, a party “must assert
But there are exceptions, and the Supreme Court’s decision in Caplin & Drysdale, Chartered v. United States,
However, we need not address that issue because we conclude that in any event Willis does not satisfy the requirements for prudential standing. In general, prudential standing requirements consist of “judicially self-imposed limits on the exercise of federal jurisdiction.” Allen v. Wright,
In contrast to the situation in Caplin & Drysdale, Willis does not satisfy the requirements for prudential standing. To be sure, Willis has an attorney-client relationship with Davis, which the Supreme Court recognized as being “of special consequence.” Id. However, Davis is clearly free to assert the fee claim, and there is no
CONCLUSION
Accordingly, we hold that section 7701(g)(1) grants the “prevailing party,” not the attorney, a legally protected interest in claiming attorney’s fees, and Willis thus lacks Article III standing to assert an independent claim for attorneys fees. While the attorney, in attempting to assert the client’s interest, may have an interest in collecting the fee award sufficient to satisfy the injury in fact requirement of Article III, the attorney fails to satisfy the requirements of prudential standing. Willis’ appeal must be dismissed because Willis lacks standing either independently or as a representative of Davis.
DISMISSED.
COSTS
No costs.
Notes
. Section 1988(b) provides, in pertinent part: "In any action or proceeding to enforce a provision of” one of the enumerated civil rights statutes, "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(b) (2000).
. Buckhannon Bd. & Care Home, Inc. v. W.V. Dep’t of Health & Human Res.,
. But cf. FDL Techs., Inc. v. United States,
. Virani and Pony both contain language indicating that a certain right "vests” in the attorney. Virani,
. But see Pony,
. This might be a different case if an attorney were asserting, for example, that the prevailing party's refusal to seek attorney's fees were itself somehow coerced or contrary to public policy. However, Evans itself has already established that the prevailing party’s waiver of fees is permissible.
. We recognize that there were contrary court of appeals decisions prior to the Supreme Court's decision in Evans. See, e.g., Lipscomb v. Wise,
Dissenting Opinion
dissenting.
I agree that Ms. Willis is not entitled to an increase in the attorney fee award in this case. I reach that conclusion by a different path than the majority, however. In my view, this appeal should not be dismissed for lack of standing. Ms. Willis has a financial interest in the outcome of the dispute, and that financial interest is sufficient to satisfy the case or controversy requirement of Article III. The Supreme Court said as much in Caplin & Drysdale, Chartered v. United States,
Ms. Willis’s legal argument is that the regulations of the Personnel Appeals Board (‘TAB”), 4 C.F.R. § 28.89, and the statute referenced in those regulations, 5 U.S.C. § 7701(g)(1), give her an independent right to pursue a fee award. This is not a case in which Ms. Willis is attempting to enforce the rights of a third party. Her position throughout the fee award litigation has been that she is independently entitled to request and receive attorney fees for her work in connection with this case. Thus, her claim is not barred either by Article III standing limitations or by prudential standing concerns. Her case turns instead on whether she has a cause of action to enforce the statutory right to fees, and if so whether she has established the right to an increased award. See Davis v. Passman,
On the merits, it is questionable whether Ms. Willis has a cause of action in a case like this one — i.e., whether an employee’s former attorney in a PAB proceeding is
. The patent standing cases to which the majority refers are not analogous. Because the injury caused by patent infringement, exists only by virtue of rights created by the Patent Act, a nonexclusive licensee who has no statutory patent right suffers no cognizable injury. See Intellectual Prop. Dev., Inc. v. TCI Cablevision of Cal.,
