ROSEMARY M. COLLYER, District Judge.
Rear Adm. (Ret.) James J. Carey, the National Defense Political Action Committee
The Federal Election Campaign Act ("FECA"), 2 U.S.C. §§ 431 et seq., inter alia, imposes limits on the sources and amounts of contributions
Id. § 441a(a)(3). All contributions and expenditures made subject to these source and amount limitations are referred to as "hard money." See EMILY's List, 581 F.3d at 27.
Under §§ 441a(a)(1)(C) & 441a(a)(3), there is no distinction made between political committees directly associated with parties/federal candidates and non-connected political action committees.
Recent Supreme Court and D.C. Circuit cases have partially invalidated statutory provisions within FECA with respect to limits placed on contributions for independent expenditures in federal election campaigns. See Citizens United v. FEC, 558 U.S. 310, 130 S.Ct. 876, 175 L.Ed.2d 753 (2010); SpeechNow.org v. FEC, 599 F.3d 686 (D.C.Cir.2010); EMILY's List, 581 F.3d 1. Contributions for independent expenditures are not limited for this purpose and may be made from a "general treasury account that is not subject to source and amount limits," otherwise known as soft money. See EMILY's List, 581 F.3d at 27. These cases held that limits on soft money contributions used for independent expenditures are unconstitutional because such a limitation violates a contributor's First Amendment right. See generally Citizens United, 130 S.Ct. 876; SpeechNow.org, 599 F.3d 686; EMILY's List, 581 F.3d 1.
Admiral Carey is the founder and treasurer of NDPAC, a political action committee. NDPAC advocates limited government and enhanced commitment to American's veterans and soldiers. Compl. [Dkt. 1] ¶ 12. It raises and expends funds "in support of candidates for federal office who are military veterans and agree with its values." Id. NDPAC "makes contributions to candidates for federal office up to the applicable limit and makes independent expenditures in support or opposition of candidates." Id. Ms. Eustis is a potential contributor to NDPAC who would like to contribute more than the amount currently allowed toward NDPAC's independent expenditures in federal campaigns. Id. ¶ 13.
On August 11, 2010, Plaintiffs submitted a request for an advisory opinion to the Commission. See 2 U.S.C. § 437f (specifying the procedure for requesting advisory opinions). They sought permission to accept unrestricted donations for independent expenditures into one account so long as contributions to candidates were made and administered with restricted donations from a separate account. On September 17, 2010, FEC issued a draft advisory opinion, Draft A, concluding that contributions to NDPAC made to finance independent expenditures were subject to the contribution limits of 2 U.S.C. § 441a(a)(1)(C) and related regulations. Compl., Ex. B. A few days later, on September 21, the Commission issued an alternative draft advisory opinion, Draft B, concluding that contributions to NDPAC made to finance independent expenditures were not subject to such limits. Compl., Ex. C. The Commission failed to approve Draft A by a 2-3 vote and failed to approve Draft B by a 3-2 vote. A binding
Unable to obtain a binding and favorable advisory opinion, Plaintiffs filed this suit. Here, they alleged that §§ 441a(a)(1)(C) & 441a(a)(3) imposed unconstitutional limits on amounts an individual may contribute to a non-connected political committee such as NDPAC with respect to independent expenditures. Plaintiffs disputed the constitutionality of any limit when those contributions are maintained separately and used for independent federal expenditures. Compl. ¶ 13.
This Court granted Plaintiffs' motion for preliminary injunction. See Carey v. FEC, 791 F.Supp.2d 121 (D.D.C.2011). FEC had opposed the request for preliminary injunction, failing to appreciate binding precedent: Citizens United, 130 S.Ct. 876; SpeechNow.org, 599 F.3d 686; and EMILY's List, 581 F.3d 1.
Carey, 791 F.Supp.2d at 129-30 (citing EMILY's List, 581 F.3d at 5-8) (footnotes omitted).
This Court held that EMILY's List squarely applies to NDPAC because both organizations are "hybrid non-profits." Carey, 791 F.Supp.2d at 130. "EMILY's List is a good example of such a hybrid non-profit: It makes expenditures for advertisements, get-out-the-vote efforts, and voter registration drives; it also makes direct contributions to candidates and parties." EMILY's List, 581 F.3d at 12. "The constitutional principles that govern such a hybrid non-profit entity follow ineluctably from the well-established principles governing the other two categories of non-profits." Id. This Court explained that by maintaining separate accounts for hard and soft money, a hybrid non-profit like NDPAC can raise and spend unlimited funds for independent federal expenditures. Thus, Plaintiffs showed a likelihood of success on the merits, see Carey, 791 F.Supp.2d at 131-32, and satisfied the other criteria for an injunction. Id. at 132-36.
On August 19, 2011, these parties all agreed to a Stipulated Order and Consent Judgment, which provides as follows:
Order and Judgment [Dkt. 28] at 2-3.
Having prevailed, Plaintiffs seek attorneys' fees and costs pursuant to EAJA. The Commission agrees to an award of costs,
To qualify for an EAJA award, a plaintiff must establish that he was the prevailing party; the burden then shifts to the government, which may avoid paying an EAJA award if its position was substantially justified. Id. § 2412(d)(1).
The government does not dispute that Plaintiffs qualify as the prevailing party in this litigation. Instead, the government argues that its position was "substantially justified." See 28 U.S.C. § 2412(d)(1)(A). The Commission argues that Plaintiffs waived the argument that the FEC's prelitigation position was not justified because Plaintiffs failed to cite EMILY's List in their request for an advisory opinion.
FEC also erroneously contends that two of its commissioners were reasonable in believing the Circuit opinion in EMILY's List was not binding on the agency. To the contrary, EMILY's List is binding precedent in this Circuit,
Plaintiffs seek $141,253.03 in fees for the work of four attorneys: Dan Backer, Stephen Hoersting, Benjamin Barr, and Allen Dickerson. Mr. Dickerson billed 30.5 hours, at the rate of $181.37 per hour. Mr. Backer billed 304.75 hours through the time of filing the fee petition, plus 15.5 for the reply in support of the fee petition, at the same rate, $181.37 per hour. Mr. Barr billed 99.5 hours, plus 14.75 hours for the reply, at the rate of $200 per hour. Mr. Hoersting billed 204.5 hours, plus 13.25 for the reply, at the rate of $250 per hour.
The FEC contends that the full amount of fees sought — $141,253.03 — is excessive because the case only proceeded through preliminary injunction, not through trial. The FEC ignores the fact that NDPAC should not have had to file this suit at all. Plaintiffs sought an advisory opinion in line with the ruling in EMILY's List and when the FEC failed to provide one, this case ensued. In addition to filing the complaint, Plaintiffs filed a motion for a preliminary injunction and a motion to stay discovery. The motions were contested; Plaintiffs prevailed on both. Plaintiffs have now filed a fee petition, which has been opposed. The number of attorney hours billed was reasonable for the work that this case required.
The Commission also contends that emails and conferences among counsel for NDPAC should not be billed. But Plaintiffs' counsel were justified in coordinating arguments and litigation strategy. The FEC assails Plaintiffs' lawyers for allegedly not exercising "billing judgment." Having reviewed the affidavits and billing records, the Court disagrees and finds the hours billed to be reasonable.
The hourly rate at which attorneys' fees can be recovered under § 2412(d)(1)(A) is $125 unless a court determines that "an increase in the cost of living or a special factor, such as the limited availability of qualified attorneys for the proceeding involved, justifies a higher fee." 28 U.S.C. § 2412(d)(2)(A). Because the statutory cap was set years ago, in 1996, courts routinely approve cost-of-living adjustments. Role Models Am., Inc. v. Brownlee, 353 F.3d 962, 969 (D.C.Cir.2004). As adjusted for cost of living, the standard $125 rate is now $181.37 per hour. The Commission does not contest this rate. See Opp. at 21 n. 6. Thus, the Plaintiffs counsel shall be compensated at the rate of $181.37 per hour.
Plaintiffs assert that Messrs. Barr ($200/hour) and Hoersting ($250/ hour) should be compensated at even higher rates under the "special factor" language of § 2412(d)(2)(A). Plaintiffs base their request on these lawyers' special expertise in election and campaign finance law. But the D.C. Circuit has rejected the claim that campaign finance and election law experience qualifies counsel for an enhanced fee under EAJA. See In re Sealed Case, 254 F.3d 233, 235-36 (D.C.Cir.2001) (denying request for enhanced fee in election law case). In order to qualify for a higher fee under EAJA, counsel must show "an identifiable practice specialty such as patent law, or knowledge of foreign law or language." Id. at 235. The Circuit noted that "[a]lthough federal election law `involves a complex statutory and regulatory framework, the field is not beyond the grasp of a competent practicing attorney with access to a law library and the other accoutrements of modern legal practice.'" Id. at 236 (quoting Chynoweth v. Sullivan, 920 F.2d 648, 650 (10th Cir. 1990)). Counsel is not entitled to enhanced rates under the special factor exception "based solely on expertise the lawyer acquired through practice in a specific
Plaintiffs contend that enhanced rates are now justified due to new complexity in election law — that the recent changes in the law have made the field obscure and difficult to master. See Reply [Dkt. 33] at 19. Plaintiffs argue that the specialized practice bar for election and campaign finance law requires more than an expertise in administrative law and an understanding of the regulations. They contend:
Id. at 18-19. This may be so, but the Court is not convinced that election and campaign finance law has changed so dramatically that binding Circuit precedent can be ignored. Accordingly, the request for enhanced hourly rates will be denied.
For the reasons stated, the Court will grant in part and deny in part Plaintiffs' motion for attorneys' fees and costs [Dkt. # 29]. Costs will be awarded in the amount of $350. Attorneys' fees may be recovered at the rate of $181.37 per hour. No later than June 4, 2012, Plaintiffs shall file a revised affidavit of fees, together with a proposed order awarding fees, in accordance with this Opinion. A memorializing Order accompanies this Memorandum Opinion.
Carey, 791 F.Supp.2d at 129.
28 U.S.C. § 2412(d)(1)(A).