Grason Electric Company, Amos J. Walker, Inc., Rex Moore Electrical Co., Inc. v. National Labor Relations Board

Six employer members of a multiemployer association (hereinafter NECA) were prevailing parties in an unfair labor practice case brought against them by the National Labor Relations Board. They challenge the Board’s refusal to award attorney fees under the Equal Access to Justice Act (EAJA), 5 U.S.C. § 504 (a)(1) (1988).

The statute provides that “[a]n agency that conducts an adversary adjudication shall award, to a prevailing party other than the United States, fees and other expenses....” The statute goes on to provide that the award shall be granted unless “the position of the agency was substantially justified or that special circumstances make an award unjust.” 5 U.S.C. § 504 (a)(1). Thus, the agency does not have discretion to deny attorney fees; the award is mandatory unless an exception applies or unless a party fails to qualify. In response to this petition for review, the Board argues that these petitioners fall within an exception and therefore are not entitled to any attorney fees.

The EAJA grew out of Congress’ concern that the high costs of litigation might deter small entities from vindicating their rights when faced with adverse action by a federal agency. See…