Gate Guard Svc. v. Perez

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Gate Guard filed suit against the DOL seeking a declaration that it was in compliance with the Fair Labor Standards Act (FLSA), 29 U.S.C. 201 et seq., and attorneys' fees if it prevailed. Before Gate Guard served the complaint, the DOL filed its own FLSA enforcement action against Gate Guard. The district court found that the DOL's case was weak and granted summary judgment for Gate Guard. The district court awarded Gate Guard attorneys’ fees under the Equal Access to Justice Act’s (EAJA) substantially-justified provision, 28 U.S.C. 2412(d), but denied fees under the EAJA’s bad faith provision, 28 U.S.C. 2412(b). On appeal, the DOL challenged the grant of attorneys' fees. The court concluded that the circumstances giving rise to an award included both the government’s conduct before and during litigation as well as a legally insupportable case. The government’s conduct here was sufficiently egregious to warrant an award under section 2412(b). Accordingly, the court reversed and remanded. View "Gate Guard Svc. v. Perez" on Justia Law