Mester Manufacturing Company v. U.S. Immigration & Naturalization Service

Mester Manufacturing Co. (“Mester”) appeals the decision of the Chief Administrative Hearing Officer (“CAHO”) of the Executive Office for Immigration Review of the Department of Justice. The CAHO reversed the decision of an administrative law judge (“ALJ”) who had awarded attorneys’ fees under the Equal Access to Justice Act (“EAJA”), 5 U.S.C. § 504 (1988), incurred during an adversary hearing under the Immigration Reform and Control Act of 1986 (“IRCA”), 8 U.S.C. § 1324a (1988). Mester argues that the CAHO lacked authority to reverse the decision of the AU in its favor, that it was a “prevailing party” under the EAJA, and that the government’s position was not “substantially justified” under the EAJA. Like our previous opinion on the merits in Mester Manufacturing Co. v. Immigration & Naturalization Service, 879 F.2d 561 (9th Cir.1989), this attorneys’ fees appeal presents issues of first impression under IRCA. We affirm the CAHO’s decision.

I

In November of 1987 the Immigration and Naturalization Service served a seventeen-count complaint asking that an AU conduct a hearing, issue a cease-and-desist order, and impose civil penalties on Mester for violations of IRCA. Seven…