Flint Wood v. Sylvia Burwell

This appeal is the latest in a decade-long conflict over the cost of copayments and medication for low-income Arizonans who qualify for a state Medicaid demonstration project covering childless adults. The sole issue is whether the members of a class action suit against the Secretary of the Department of Health and Human Services (“DHHS” or the “Secretary”) were the “prevailing parties]” for purposes of attorneys’ fees under the Equal Access to Justice Act (“EAJA”), 28 U.S.C. § 2412 .

In many ways, this case reads like a classic victory for the class (the “Wood plaintiffs”): The district court found that the Secretary acted in a manner that was arbitrary and capricious — in violation of the Administrative Procedure Act (“APA”), 5 U.S.C. § 706 (2)(A) — by approving the project without considering the class members’ evidence and objections. The court remanded the case to the agency for a new decision consistent with its legal obligations and the Secretary complied. See Wood v. Betlach, 922 F.Supp.2d 836 (D. Ariz. 2013). After reconsideration, the Secretary again approved the demonstration project, and the district court then granted summary judgment in her favor. However,…