United States v. One 1997 Toyota Land Cruiser

*902 OPINION

Martha Irene Fereydouni appeals the district court’s denial of attorney’s fees under a provision of the Equal Access to Justice Act (“EAJA”) that permits an award of attorney’s fees if “the demand by the United States is substantially in excess of the judgment finally obtained by the United States and is unreasonable when compared with such judgment....” 28 U.S.C. § 2412 (d)(1)(D). This provision, which was enacted as a 1996 amendment to the EAJA, has never before been construed by a court of appeals. We vacate the district court’s decision and remand for further proceedings consistent with our opinion.

I. FACTUAL AND PROCEDURAL BACKGROUND

On March 5, 1998, the United States filed a complaint for forfeiture against Fereydouni’s 1997 Toyota Land Cruiser. The complaint alleged a series of events involving Fereydouni’s boyfriend, Fernando Castaños, who was arrested on October 1, 1997, on charges of smuggling 432 kilograms of cocaine into the United States. At the time of his arrest, Castaños was driving the sport utility vehicle, which the government then seized. Fereydouni had purchased the vehicle on July 18, 1997 for $50,132.57, the bulk of which was paid by a wire…