United States v. 88.88 Acres of Land, More or Less State of California Edward Ordway, Jr.

The United States appeals a jury award of $1,404,190 in a condemnation proceeding and a portion of a fee award under the Equal Access to Justice Act, 28 U.S.C. § 2412 (Supp.1989) (EAJA). We find no merit in the government’s challenges to the discretionary rulings on evidence of the district court and so affirm the money judgment for the condemnation. We publish this opinion only to address aspects of the EAJA award.

The statute makes an individual ineligible for attorney fees if his net worth exceeds $2 million at the time the civil action was filed. 28 U.S.C. § 2412 (d)(2)(B) (Supp.1989). The landowner, Edward Ordway, Jr., in his application for the EAJA award submitted figures showing the acquisition cost of the land owned by him as $43,001. The government contends that the value of the land should have been set at the figure reached by the jury of $1,404,-190, because that is the fair market value of the land.

The government is wrong. The legislative history of the EAJA states in unmistakable language: “In determining the value of assets, the cost of acquisition rather than fair market value should be used.” H.R.Rep. No. 1418, 96th Cong., 2d Sess. 15 (1980), reprinted in 1980…