U.S. Securities & Exchange Commission v. Chapman

MEMORANDUM

Daniel Chapman, an attorney appearing pro se, appeals the district court’s order denying his application for attorney’s fees under the Equal Access to Justice Act (“EAJA”). In the underlying action, Chapman (also appearing pro se) prevailed against the U.S. Securities and Exchange Commission (“SEC”) in a securities fraud case, charging that Chapman entered into a scheme to manipulate the market for the stock of Exotics.com.

1. The district court did not err in denying Chapman attorney’s fees. In Kay v. Ehrler, the Supreme Court determined that pro se attorney-plaintiff litigants could not recover attorney’s fees. 499 U.S. 432 , 435-38, 111 S.Ct. 1435 , 113 L.Ed.2d 486 (1991). It reasoned that (a) the term attorney’s fees “assumes an agency relationship” between an attorney and a client, and (b) awarding fees only when there is an independent attorney-client relationship, encourages “potential plaintiffs to obtain the assistance of competent counsel in vindicating their rights.” Id. at 436-37, 111 S.Ct. 1435 . Applying Kay, we then determined that all pro se litigants (including attorneys) are not entitled to attorneys’ fees under fee-shifting statutes, such as the…