Attorney's Fees -- 1998



National Association of Manufacturers v. U.S. Dep't of Labor   (D.C. Circuit)

Attorneys' fees for suing the government

The Government lost its appeal of an award of attorneys' fees to the NAM in this case in which several of the Department of Labor's regulations relating to the H-1B temporary visa program were substantially rejected. On 11/3/98, the court ruled that an association that substantially prevails in a civil action against the United States can collect attorneys' fees under the Equal Access to Justice Act as long as its net worth does not exceed $7,000,000 and it has no more than 500 employees. The net worth or number of employees of individual members of the association is not counted in this calculation. The Court also ruled that the law firm is eligible for fees even though it handled the case on a pro bono (free) basis. (The firm is also entitled to additional fees for winning the appeal on the fee issue.)

The ruling will encourage trade associations and their outside counsel to litigate important and legitimate challenges to government regulations. The Sixth Circuit, however, takes a contrary position on this issue.