Opinion ID: 448891
Heading Depth: 2
Heading Rank: 1

Heading: Consideration by the Social Security Administration or the District Court?

Text: 8 Clifton first contends that the district court had no jurisdiction to consider her application for attorney's fees under the EAJA, relying on 5 U.S.C. Sec. 504 and the administrative regulations promulgated thereunder. 4 Clifton argues that, because 5 U.S.C. Sec. 504 governs the award of attorney's fees to parties who prevail against the federal government in administrative proceedings and that section indicates that the adjudicative officer of the agency will first consider the application before a party may seek judicial review of the agency's decision, the district court was without authority in the instant action to entertain Clifton's application in the absence of prior agency adjudication of the claim and a grant of a petition for leave to appeal the agency's decision. Clifton explains that her application was filed in the district court in conformance with 45 C.F.R. Sec. 13.21, requiring that [a]ll pleadings, including applications for an award of fees, ... shall be pled in the same manner as other pleadings in the proceeding and served on all other parties and participants. Because the case was then in the district court, Clifton filed her application there but in no wise intended that the district court pass upon the application before the Social Security Administration did so. Thus, because the Social Security Administration did not first consider her application for attorney's fees, Clifton concludes, the district court in denying the application improperly interposed itself as the sole arbiter of her claim. Clifton's contention is without merit, however, largely because the statutory and regulatory tapestry she weaves is incomplete. 9 We begin by examining the EAJA and its legislative history. The EAJA was enacted to lessen the likelihood that challenges to bureaucratic action would be determined by the high cost of litigating against the government. EAJA, supra, Sec. 202(c)(1), 94 Stat. at 2325; H.R.Rep. No. 1418, 96th Cong., 2d Sess. 9-10, reprinted in 1980 U.S.Code Cong. & Ad.News 4984, 4984-88. 5 Federal agencies, under 5 U.S.C. Sec. 504(a)(1), and courts, under 28 U.S.C. Sec. 2412(d)(1)(A), are authorized to award attorney's fees to parties who prevail against the federal government in adversary adjudications unless the government's position was substantially justified or there are special circumstances which make a fee award unjust. An adversary adjudication is defined as a determination on the record after opportunity for an agency hearing, with certain inapplicable exceptions, see 5 U.S.C. Sec. 554(a), in which the position of the United States is represented by counsel. Id. Sec. 504(b)(1)(C). 10 It has been held that proceedings before the Social Security Administration are not adversary adjudications and are thus excluded from coverage under the EAJA. Cornella v. Schweiker, 728 F.2d 978, 988-89 (8th Cir.1984); Guthrie v. Schweiker, 718 F.2d 104, 107 (4th Cir.1983); McGill v. Secretary of Health & Human Services, 712 F.2d 28, 30 (2d Cir.1983), cert. denied, --- U.S. ----, 104 S.Ct. 1420, 79 L.Ed.2d 745 (1984). 6 This conclusion is largely predicated on the fact that the United States is not represented by counsel at the agency level in social security proceedings. The portion of the conference report accompanying the EAJA that defined adversary adjudication clearly evinces Congress' intent to exclude social security proceedings from coverage under the EAJA. The report states: It is intended that this definition preclude an award in a situation where an agency, e.g., the Social Security Administration, does not take a position in the adjudication. H.R.Conf.Rep. No. 1434, 96th Cong., 2d Sess. 23, reprinted in 1980 U.S.Code Cong. & Ad.News 5003, 5012 (emphasis added). 7 Further, Clifton fails to cite 45 C.F.R. Sec. 13.3, which expressly limits application of the Secretary's rules implementing the EAJA to adversary adjudications. The regulation references an appendix listing of departmental proceedings covered by the rules which does not include social security proceedings. Thus, because the proceedings before the Social Security Administration in the instant action do not constitute an adversary adjudication, Clifton cannot maintain her claim for attorney's fees under 5 U.S.C. Sec. 504(a)(1), or, for the matter, under 28 U.S.C. Sec. 2412(d)(3), the text of which is set out at the margin. 8 11 Nevertheless, the EAJA has been held to apply to actions for judicial review of final decisions of the Secretary brought under the Social Security Act. Cornella, 728 F.2d at 987 & n. 15; Guthrie, 718 F.2d at 107-08; Berman v. Schweiker, 713 F.2d 1290, 1293 (7th Cir.1983); McGill, 712 F.2d at 30. The legislative history of the EAJA supports this proposition, indicating that Congress intended the EAJA to cover civil actions to review decisions of the Secretary. The House report accompanying the Act states that [t]here was much discussion whether the United States should be liable when it is a named party and represented in a civil action under the Social Security Act. The Committee decided that civil actions should be covered. H.R.Rep. No. 1418, 96th Cong., 2d Sess. 12, reprinted in 1980 U.S.Code Cong. & Ad.News 4984, 4991. Hence, a court reviewing the Secretary's disposition of a social security claim may determine whether the claimant should be awarded attorney's fees under the EAJA pursuant to 28 U.S.C. Sec. 2412(d)(1)(A). 12 Applying the foregoing principles to the case at hand, we hold that the proceedings at the agency level regarding Clifton's claim for social security benefits did not amount to an adversary adjudication, and thus they were not covered by 5 U.S.C. Sec. 504(a)(1). Therefore, because the district court was reviewing the Secretary's disposition of Clifton's claim for benefits, Clifton's application for attorney's fees would be cognizable only in the district court under Sec. 2412(d)(1)(A) but only if that court possessed subject matter jurisdiction. It is to the jurisdictional issue that we now turn. 9