United States v. Manchester Farming Partnership, United States of America v. Lone Pine Land, Inc., United States of America v. Priest Butte Farm, Inc.

Manchester Farming Partnership (“Manchester”), Lone Pine Land, Inc. (“Lone Pine”), and Priest Butte Farm, Inc. (“Priest Butte”), (together, “Appellants”) appeal the district court’s denial of attorney fees and costs pursuant to 18 U.S.C. § 3006A (the “Hyde Amendment”). Appellants argue that the Government’s conduct before and during the trial was vexatious, frivolous, and in bad faith; thus the district court erred when it denied their Hyde Amendment request for attorney fees and costs. We hold that the district court did not abuse its discretion; therefore, we affirm.

I. BACKGROUND

Robert Stephens formed each of the three entities that constitute the Appellants in this matter. Stephens, an individual farmer in Montana, incorporated both Priest Butte and Lone Pine in 1987. Stephens, with one other shareholder for each company, owns an equal 50% ownership interest in both corporations. In 1991, Stephens formed Manchester with four equal partners.

Stephens successfully defeated an unrelated civil claim brought by Gary Schu-macher in 1994. Subsequent to Stephens’ successful defense in this 1994 suit, Schu-macher’s wife, Barbara Darrow, provided the Department of…