Opinion · Supreme Court of the United States
Buckhannon Board & Care Home, Inc. v. West Virginia Dept. of Health and Human Resources
Buckhannon Bd. & Care Home, Inc. v. W. Va. Dept. of Health & Hum. Res., 14 Fla. L. Weekly Fed. S 287 (Supreme Court of the United States 2001)
- Type
- Opinion
- Court
- Supreme Court of the United States
- Jurisdiction
- Federal
- Date
- 2001-05-29
- Topic
- general
holding that the term “prevail” denotes “a judicially sanctioned change in the legal relationship of the parties” | recognizing that the holding of McNally “contradict[ed] the unanimous and longstanding interpretation of lower federal courts.” | holding that one can be a prevailing party if “a party has prevailed on the merits of at least some of his claims” | recognizing that "[w]ords that have acquired a specialized meaning in the legal context must be accorded their legal meaning" | recognizing that “[w]ords that have acquired a specialized meaning in the legal context must be accorded their legal meaning” | holding that a party must secure a judgment on the merits or a court- ordered consent decree to be a prevailing party under the ADA | concluding that a plaintiff was not a prevailing party where case became moot before the district court could render a judgment | holding that plaintiffs may not recover attorney fees under the catalyst theory in cases brought under the FHAA and ADA | recognizing that “States and state officers acting in their official capacity are immune from suits for damages” | recognizing that the holding of McNally “contradicted] the unanimous and longstanding interpretation of lower federal courts.” | holding that enforceable judgments create the material alteration of the legal relationship of the parties necessary to permit an award of attorney's fees | concluding that a plaintiff who secures the desired relief because a lawsuit induced the defendant voluntarily to change its conduct is not a “prevailing party” | holding that a party becomes a prevailing party once there is a “judicially sanctioned change in the legal relationship of the parties” | holding that the Buckhannon rule 13294 LI v. KEISLER regarding prevailing party status governs EAJA fee applica- tions | holding that mootness of action on the merits precluded award of attorney fees because petitioners could never be prevailing parties | holding that prevailing parties include those who get “enforceable judgments on the merits” because that judgment was a “judicially sanctioned change in the legal relationship of the parties” | holding that "[a] defendant's voluntary change in conduct"-the mirror image of a plaintiff's voluntary decision to withdraw a claim-"lacks the necessary judicial imprimatur " to qualify the defendant as a prevailing party | concluding that fees may not be awarded on a catalyst theory simply because plaintiff “achieved the desired result” or “because the suit brought about a voluntary change in defendant’s conduct” | holding that “enforceable judgments on the merits and court-ordered consent decrees create the ‘material alteration of the legal relationship of the parties’ necessary to permit an award of attorney’s fees” | holding that fee-shifting provisions of Fan Housing Amendments Act and of Americans with Disabilities Act require party to secure either judgment on merits or court-ordered consent decree to qualify as “prevailing party” | holding that fee-shifting provisions of Fair Housing Amendments Act and of Americans with Disabilities Act require party to secure either judgment on merits or court-ordered consent decree to qualify as "prevailing party" | recognizing that the analysis is the same for many fee-shifting statutes, including the ADA’s | holding that a party is not entitled to attorney’s fees as a prevailing party on a moot claim, even if its lawsuit “brought about a voluntary change in the defendant’s conduct” that rendered the suit moot | holding that a party may be liable under § 1447(c | holding that Buckhannon’s definition of “prevailing party” applies to the EAJA | holding an award of attorneys’ fees under Americans with Disabilities Act and Fair Housing Act requires a party to secure a judgment on the merits | noting that “prevailing party” is a “legal term of art” to be interpreted consistently across federal fee-shifting statutes | stating that a prevailing party is one that “achieve[d]
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delivered the opinion of the Court.
Numerous federal statutes allow courts to award attorney’s fees and costs to the “prevailing party.” The question presented here is whether this term includes a party that has failed to secure a judgment on the merits or a court-ordered consent decree, but has nonetheless achieved the desired result because the lawsuit brought about a voluntary change in the defendant’s conduct. We hold that it does not.
Buekhannon Board and Care Home, Inc., which operates care homes that provide assisted living to their residents, failed an inspection by the West Virginia Office of the State Fire Marshal because some of the residents were incapable of “self-preservation” as defined under state law. See W. Va. Code §§16-5H-1, 16-5H-2 (1998) (requiring that all residents of residential board and care homes be capable of “self-preservation,” or capable of moving themselves “from situations involving imminent danger, such as fire”); W. Va. Code of State Rules, tit. 87, ser. 1, § 14.07(1) (1995) (same). On October 28, 1997, after receiving cease-and-desist orders requiring the closure of its residential care facilities within 30 days, Buekhannon Board and Care Home, Ine., on behalf of itself and other similarly situated homes and residents (hereinafter petitioners), brought suit in the United States
Respondents agreed to stay enforcement of the cease-and-desist orders pending resolution of the case and the parties began discovery. In 1998, the West Virginia Legislature enacted two bills eliminating the “self-preservation” requirement, see S. 627,11998 W. Va. Aets 983-986 (amending regulations); H. R. 4200, II1998 W. Ya. Aets 1198-1199 (amending statute), and respondents moved to dismiss the ease as moot. The District Court granted the motion, finding that the 1998 legislation had eliminated the allegedly offensive provisions and that there was no indication that the West Virginia Legislature would repeal the amendments.2
Petitioners requested attorney’s fees as the “prevailing party” under the FHAA, 42 U.S.C. § 3613(c)(2) (“[T]he court, in its discretion, may allow the prevailing party... a reasonable attorney’s fee and costs”), and ADA, 42 U. S. C. § 12205 (“[T]he court... , in its discretion, may allow the prevailing party ... a reasonable attorney’s fee, including litigation expenses, and costs”). Petitioners argued that they were entitled to attorney’s fees under the “catalyst theory,” which posits that a plaintiff is a “prevailing party” if it achieves the desired result because the lawsuit brought about a voluntary change in the defendant’s conduct. Al
To resolve the disagreement amongst the Courts of Appeals, we granted certiorari, 530 U. S. 1304 (2000), and now affirm.
In the United States, parties are ordinarily required to bear their own attorney’s fees — the prevailing party is not entitled to collect from the loser. See Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 247 (1975). Under this "American Rule,” we follow “a general practice of not awarding fees to a prevailing party absent explicit statutory authority.” Key Tronic Corp. v. United States, 511 U.S. 809, 819 (1994). Congress, however, has authorized the award of attorney’s fees to the “prevailing party” in numerous statutes in addition to those at issue here, such as the Civil Rights Act of 1964,78 Stat. 259,42 U. S. C. §2000e-5(k), the Voting Rights Act Amendments of 1975, 89 Stat. 402, 42 U. S. C. § 19732(e), and the Civil Rights Attorney’s
In designating those parties eligible for an award of litigation costs, Congress employed the term “prevailing party,” a legal term of art. Black’s Law Dictionary 1145 (7th ed. 1999) defines “prevailing party” as “[a] party in whose favor a judgment is rendered, regardless of the amount of damages awarded <in certain cases, the court will award attorney’s fees to the prevailing party>. —Also termed successful party” This view that a “prevailing party” is one who has been awarded some relief by the court can be distilled from our prior cases.5
In Hanrahan v. Hampton, 446 U.S. 754, 758 (1980) (per curiam), we reviewed the legislative history of § 1988 and found that “Congress intended to permit the interim award of counsel fees only when a party has prevailed on the merits of at least some of his claims.” Our “[rjespect for ordinary language requires that a plaintiff receive at least some relief on the merits of his claim before he can be said to prevail.”
In addition to judgments on the merits, we have held that settlement agreements enforced through a consent decree may serve as the basis for an award of attorney’s fees. See Maher v. Gagne, 448 U.S. 122 (1980). Although a consent decree does not always include an admission of liability by the defendant, see, e. g., id., at 126, n. 8, it nonetheless is a court-ordered “ehang[e] [in] the legal relationship between [the plaintiff] and the defendant.” Texas State Teachers Assn. v. Garland Independent School Dist., 489 U.S. 782, 792 (1989) (citing Hewitt, supra, at 760-761, and Rhodes v. Stewart, 488 U. S. 1, 3-4 (1988) (per curiam)).7 These decisions, taken together, establish that enforceable judgments on the merits and court-ordered consent decrees create the “material alteration of the legal relationship of the parties” necessary to permit an award of attorney’s fees. 489 U.S., at 792-793; see also Hanrakan, supra, at 757 (“[I]t seems clearly to have been the intent of Congress to permit... an interlocutory award only to a party who has established his entitlement to some relief on the merits of his claims, either in the trial court or on appeal” (emphasis added)).
The dissenters chide us for upsetting “long-prevailing Circuit precedent.” Post, at 622 (opinion of Ginsbukg, J.) (emphasis added). But, as Justice Scalia points out in his concurrence, several Courts of Appeals have relied upon dicta in our prior eases in approving the “catalyst theory.” See post, at 621-622; see also supra, at 608, n. 5. Now that the issue is squarely presented, it behooves us to reconcile the plain language of the statutes with our prior holdings. We have only awarded attorney’s fees where the plaintiff has received a judgment on the merits, see, e. g., Farrar, supra, at 112, or obtained a court-ordered consent decree, Maher, supra, at 129-130 — we have not awarded attorney’s fees where the plaintiff has secured the reversal of a directed
The House Report to § 1988 states that “[t]he phrase ‘prevailing party' is not intended to be limited to the victor only after entry of a final judgment following a full trial on the merits,” H. R. Rep. No. 94-1558, p. 7 (1976), while the Senate Report explains that “parties may be considered to have prevailed when they vindicate rights through a consent judgment or without formally obtaining relief,” S. Rep. No. 94-1011, p. 5 (1976). Petitioners argue that these Reports and their reference to a 1970 decision from the Court of Appeals for the Eighth Circuit, Parham v. Southwestern Bell Telephone Co., 433 F. 2d 421 (1970), indicate Congress' intent to adopt the “catalyst theory.”9 We think the legislative his
Petitioners finally assert that the “catalyst theory” is necessary to prevent defendants from unilaterally mooting an action before judgment in an effort to avoid an award of attorney’s fees. They also claim that the rejection of the “catalyst theory” will deter plaintiffs with meritorious but expensive eases from bringing suit. We are skeptical of these assertions, which are entirely speculative and unsupported by any empirical evidence (e. g., whether the number of suits brought in the Fourth Circuit has declined, in relation to other Circuits, since the decision in S-l and S-2).
Petitioners discount the disincentive that the “catalyst theory” may have upon a defendant’s decision to voluntarily change its conduct, conduct that may not be illegal. “The defendants’ potential liability for fees in this kind of litigation can be as significant as, and sometimes even more significant than, their potential liability on the merits,” Evans v. Jeff D., 475 U.S. 717, 734 (1986), and the possibility of being assessed attorney’s fees may well deter a defendant from altering its conduct.
And petitioners’ fear of mischievous defendants only materializes in claims for equitable relief, for so long as the
We have also stated that “[a] request for attorney’s fees should not result in a second major litigation,” Hensley v. Eckerhart, 461 U. S. 424, 437 (1983), and have accordingly avoided an interpretation of the fee-shifting statutes that would have “spawnfed] a second litigation of significant dimension,” Garland, supra, at 791. Among other things, a “catalyst theory” hearing would require analysis of the defendant’s subjective motivations in changing its conduct, an analysis that “will likely depend on a highly faetbound inquiry and may turn on reasonable inferences from the nature and timing of the defendant’s change in conduct.”
Given the clear meaning of “prevailing party” in the fee-shifting statutes, we need not determine which way these various policy arguments cut. In Alyeska, 421 U.S., at 260, we said that Congress had not “extended any roving authority to the Judiciary to allow counsel fees as costs or otherwise whenever the courts might deem them warranted.” To disregard the clear legislative language and the holdings of our prior cases on the basis of such policy arguments would be a similar assumption of a “roving authority.” For the reasons stated above, we hold that the “catalyst theory” is not a permissible basis for the award of attorney’s fees under the FHAA, 42 U. S. C. § 3613(e)(2), and ADA, 42 U.S.C. §12205.
The judgment of the Court of Appeals is
Affirmed.
The original complaint also sought money damages, but petitioners relinquished this daim on January 2,1998. See App. to Pet. for Cert. All.
The District Court sanctioned respondents under Federal Rule of Civil Procedure 11 for failing to timely provide notice of the legislative amendment. App. 147.
See, e. g., Stanton v. Southern Berkshire Regional School Dist., 197 F. 3d 574, 577, n. 2 (CA1 1999); Marbley v. Bane, 57 F. 3d 224, 234 (CA2 1995); Baumgartner v. Harrisburg Housing Authority, 21 F. 3d 541, 546-550 (CA3 1994); Payne v. Board of Ed., 88 F. 3d 392, 397 (CA6 1996); Zinn v. Shalala, 35 F. 3d 273, 276 (CA7 1994); Little Rock School Dish v. Pulaski Cty. School Dish, #1,17 F. 3d 260, 263, n. 2 (CA8 1994); Kilgour v. Pasadena, 53 F. 3d 1007, 1010 (CA9 1995); Beard v. Teska, 31 F. 3d 942, 951-952 (CA10 1994); Morris v. West Palm Beach, 194 F. 3d 1203, 1207 (CA11 1999).
We have interpreted these fee-shifting provisions consistently, see Hensley v. Eckerhart, 461 U.S. 424, 433, n. 7 (1983), and so approach the nearly identical provisions at issue here.
We have never had occasion to decide whether the term “prevailing party” allows an award of fees under the “catalyst theory” described above. Dictum in Hewitt v. Helms, 482 U.S. 755, 760 (1987), alluded to the possibility of attorney’s fees where “voluntary action by the defendant ... affords the plaintiff all or some of the relief... sought,” but we expressly reserved the question, see id., at 763 (“We need not decide the circumstances, if any, under which this ‘catalyst’ theory could justify a fee award”). And though the Court of Appeals for the Fourth Circuit relied upon our decision in Farrar v. Hobby, 506 U.S. 103 (1992), in rejecting the “catalyst theory,” Farrar “involved no catalytic effect.” Friends of Earth, Inc. v. Laidlaw Environmental Services (TOC), Inc., 528 U.S. 167, 194 (2000). Thus, there is language in our cases supporting both petitioners and respondents, and last Term we observed that it was an open question here. See ibid.
However, in some circumstances such a “prevailing party” should still not receive an award of attorney’s fees. See Farrar v. Hobby, supra, at 115-116.
We have subsequently characterized the Maher opinion as also allowing for an award of attorney’s fees for private settlements. See Farrar v. Hobby, supra, at 111; Hewitt v. Helms, supra, at 760. But this dictum ignores that Maher only “held that fees may be assessed... after a case has been settled by the entry of a consent decree.” Evans v. Jeff D., 475 U.S. 717, 720 (1986). Private settlements do not entail the judicial approval and oversight involved in consent decrees. And federal jurisdiction to enforce a private contractual settlement will often be lacking unless the terms of the agreement are incorporated into the order of dismissal. See Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375 (1994).
Although the dissenters seek support from Mansfield, C. & L. M. R. Co. v. Swan, 111 U.S. 379 (1884), that case involved costs, not attorney’s fees. “[B)y the long established practice and universally recognized rule of the common law... the prevailing party is entitled to recover a judgment for costs,” id., at 387, but “the rule 'has long been that attorney’s fees are not ordinarily recoverable,”’ Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 257 (1975) (quoting Fleischmann Distilling Corp. v. Maier Brewing Co., 386 U.S. 714, 717 (1967)). Courts generally, and this Court in particular, then and now, have a presumptive rule for costs which the Court in its discretion may vary. See, e. g., this Court’s Rule 43.2 (“If the Court reverses or vacates a judgment, the respondent or appellee shall pay costs unless the Court otherwise orders”). In Mansfield, the defendants had successfully removed the case to federal court, successfully opposed the plaintiffs’ motion to remand the case to state court, lost on the merits of the case, and then reversed course and successfully argued in this Court that the lower federal court had no jurisdiction. The Court awarded costs to the plaintiffs, even though they had lost and the defendants won on the jurisdictional issue, which was the only question this Court decided. In no ordinary sense of the word can the plaintiffs have been said to be the prevailing party here — they lost and their opponents won on the only litigated issue — so the Court’s use of the term must be regarded as a figurative rather than a literal one, justifying the
Although the Court of Appeals in Parham awarded attorney’s fees to the plaintiff because his “lawsuit acted as a catalyst which prompted the [defendant] to take action . . . seeking compliance with the requirements of Title VII,” 433 F. 2d, at 429-430, it did so only after finding that the defendant had aeted unlawfully, see id., at 426 (“We hold as a matter of law that [plaintiff’s evidence] established a violation of Title VII”). Thus, consistent with our holding in Farrar, Parham stands for the proposition that an enforceable judgment permits an award of attorney’s fees. And like the consent decree in Maker v. Gagne, 448 U. S. 122 (1980), the Court of Appeals in Parham ordered the District Court to “retain jurisdiction over the matter for a reasonable period of time to insure the continued implementation of the appellee’s policy of equal employment opportunities.” 433 F. 2d, at 429. Clearly Parham does not
Only States and state officers acting in their official capacity are immune from suits for damages in federal court. See, e. g., Edelman v. Jordan, 415 U.S. 651 (1974). Plaintiffs may bring suit for damages against all others, including municipalities and other political subdivisions of a State, see Mt. Healthy City Bd. of Ed. v. Doyle, 429 U.S. 274 (1977).