OPINION OF THE COURT
ASTRUE V. RATLIFF
560 U. S. ____ (2010)
SUPREME COURT OF THE UNITED STATES
NO. 08-1322
MICHAEL J. ASTRUE, COMMISSIONER OF SOCIAL SECURITY,
PETITIONER
v. CATHERINE G. RATLIFF
on writ of certiorari to the united states court of
appeals for the eighth circuit
[June 14, 2010]
Justice Thomas delivered the
opinion of the Court.
Section 204(d) of the Equal
Access to Justice Act (EAJA), codified in 28 U. S. C. §2412(d),
provides in pertinent part that “a court shall award to a
prevailing party … fees and other expenses … in any civil action …
brought by or against the United States … unless the court finds
that the position of the United States was substantially
justified.” We consider whether an award of “fees and other
expenses” to a “prevailing party” under §2412(d) is payable to the
litigant or to his attorney. We hold that a §2412(d) fees award is
payable to the litigant and is therefore subject to a Government
offset to satisfy a pre-existing debt that the litigant owes the
United States.
I
This case arises out of
proceedings in which a Social Security claimant, Ruby Willows Kills
Ree, prevailed on a claim for benefits against the United States.
Respondent Catherine Ratliff was Ree’s attorney in those
proceedings. The District Court granted Ree’s unopposed motion for
a §2412(d) fees award in the amount of $2,112.60. Before the United
States paid the fees award, however, it discovered that Ree owed
the Government a debt that predated the District Court’s approval
of the award. Accordingly, the United States sought an
administrative offset against the fees award to satisfy part of
that debt.
The Government’s authority to use
administrative offsets is statutory. See 31 U. S. C.
§§3711(a), 3716(a) (authorizing an agency whose debt collection
attempts are unsuccessful to “collect the claim by administrative
offset”).[
Footnote 1] Congress
has subjected to offset all “funds payable by the United States,”
§3701(a)(1), to an individual who owes certain delinquent federal
debts, see §3701(b), unless, as relevant here, payment is exempted
by statute, see §3716(e)(2). No such exemption applies to
attorney’s fees awards under 28 U. S. C. §2412(d)(1)(A)
(hereinafter subsection (d)(1)(A)), which are otherwise subject to
offset, see 31 CFR §285.5(e)(1) (2009), and which, as of January
2005, are covered by the Treasury Offset Program (TOP) operated by
the Treasury Department’s Financial Management Service (FMS). See
Brief for Petitioner 4 (explaining TOP’s extension to cover
so-called “ ‘miscellaneous’ ” payments that include
attorney’s fees payments the Treasury Department makes on behalf of
federal agencies).[
Footnote
2]
In this case, the Government, relying on the
TOP, notified Ree that the Government would apply her §2412(d) fees
award to offset a portion of her outstanding federal debt. Ratliff
intervened to challenge the offset on the grounds that §2412(d)
fees belong to a litigant’s attorney and thus may not be used to
offset or otherwise satisfy a litigant’s federal debts. The
District Court held that because §2412(d) directs that fees be
awarded to the prevailing party, not to her attorney, Ratliff
lacked standing to challenge the Government’s proposed offset. See
No. CIV. 06–5070–RHB, 2007 WL 6894710, *1 (D SD, May 10, 2007).
The Court of Appeals for the Eighth Circuit
reversed. 540 F. 3d 800 (2008). It held that under Circuit
precedent, “EAJA attorneys’ fees are awarded to prevailing parties’
attorneys.”
Id., at 802. The Court of Appeals recognized
that its decision did not accord with a “literal interpretation of
the EAJA,”
ibid., and exacerbated a split among the Courts
of Appeals, compare
id., at 801–802, with,
e.g.,
Reeves v.
Astrue, 526 F. 3d 732, 733 (CA11
2008);
Manning v.
Astrue, 510 F. 3d 1246,
1249–1251 (CA10 2007);
FDL Technologies, Inc. v.
United States, 967 F. 2d 1578, 1580 (CA Fed. 1992);
Panola Land Buying Assn. v.
Clark, 844 F. 2d
1506, 1510–1511 (CA11 1988).[
Footnote 3] We granted certiorari. 557 U. S. ___
(2009).
II
Subsection (d)(1)(A) directs that
courts “shall
award to a prevailing party … fees and other
expenses … incurred by that party.” (Emphasis added.) We have long
held that the term “prevailing party” in fee statutes is a “term of
art” that refers to the prevailing litigant. See,
e.g.,
Buckhannon Board & Care Home, Inc. v.
West
Virginia Dept. of Health and Human Resources,
532 U. S. 598, 603
(2001). This treatment reflects the fact that statutes that award
attorney’s fees to a prevailing party are exceptions to the
“ ‘American Rule’ ” that each
litigant “bear
[his] own attorney’s fees.”
Id., at 602 (citing
Key
Tronic Corp. v.
United States,
511 U. S. 809, 819
(1994)). Nothing in EAJA supports a different reading. Cf.
Arthur Andersen LLP v.
Carlisle, 556 U. S. ___,
___, n. 4 (2009) (slip op., at 6, n. 4) (where Congress
employs “identical words and phrases within the same statute,” they
are presumed to carry “the same meaning” (internal quotation marks
omitted)). Indeed, other subsections within §2412(d) underscore
that the term “prevailing party” in subsection (d)(1)(A) carries
its usual and settled meaning—prevailing litigant. Those other
subsections clearly distinguish the party who receives the fees
award (the litigant) from the attorney who performed the work that
generated the fees. See,
e.g., §2412(d)(1)(B) (hereinafter
subsection (d)(1)(B)) (the “prevailing party” must apply for the
fees award and “sho[w]” that he “is a prevailing party and is
eligible to receive an award” by, among other things, submitting
“an itemized statement
from any attorney …
representing or appearing in behalf of the party” that
details the attorney’s hourly rate and time spent on the case
(emphasis added)); see also Part III,
infra.
Ratliff nonetheless asserts that
subsection (d)(1)(A)’s use of the verb “award” renders §2412(d)
fees payable directly to a prevailing party’s attorney and thus
protects the fees from a Government offset against the prevailing
party’s federal debts. See Brief for Respondent 11–19 (arguing that
subsection (d)(1)(A)’s use of the word “ ‘award’ ”
“expressly incorporates a critical distinction” between the right
to an “ ‘award’ ” of fees and the right to
“ ‘receiv[e]’ ” the fees). We disagree.
The transitive verb “ ‘award’ ” has
a settled meaning in the litigation context: It means “[t]o give or
assign
by sentence or judicial determination.” Black’s Law
Dictionary 125 (5th ed. 1979) (emphasis added); see also Webster’s
Third New International Dictionary 152 (1993) (“to give
by
judicial decree” (emphasis added)). The plain meaning of the word
“award” in subsection (d)(1)(A) is thus that the court shall “give
or assign by … judicial determination” to the “prevailing party”
(here, Ratliff’s client Ree) attorney’s fees in the amount sought
and substantiated under,
inter alia, subsection
(d)(1)(B).
Ratliff’s contrary argument does not withstand
scrutiny. According to Ratliff, subsection (d)(1)(B), which uses
“the noun ‘award’ ” to mean a “ ‘decision,’ ”
requires us to construe subsection (d)(1)(A) (which uses “award” as
a verb) to mean that “[o]nly the prevailing party may receive the
award (the decision granting fees), but only the attorney
who earned the
fee (the payment asked or given for
professional services) is entitled to receive it.” Brief for
Respondent 16, 15 (emphasis in original; some internal quotation
marks and footnote omitted). This argument ignores the settled
definitions above, and even the definitions Ratliff proffers,
because each makes clear that the verb “award” in subsection
(d)(1)(A) means to “give
by the decision of a law court”
or to “grant …
by judicial decree,” not simply to “give a
decision” itself.
Id., at 16, and n. 39 (emphasis added;
internal quotation marks omitted). We thus agree with the
Government that under the statutory language here, the “judicial
decision is the
means by which the court confers a right
to payment upon the prevailing party; it is not itself the
thing that the court gives (or orders the defendant to
give) to the party.” Reply Brief for Petitioner 4 (emphasis in
original) (citing
Hewitt v.
Helms,
482 U. S. 755, 761
(1987) (explaining that “[i]n all civil litigation, the judicial
decree is not the end but the means”)). This settled and natural
construction of the operative statutory language is reflected in
our cases. See,
e.g.,
Scarborough v.
Principi,
541 U. S. 401, 405
(2004) (“EAJA authorizes the
payment of fees
to a
prevailing party” (emphasis added)).
Ratliff’s final textual argument—that
subsection (d)(1)(A)’s reference to “attorney’s fees” itself
establishes that the fees are payable to the prevailing party’s
attorney, see Brief for Respondent 19–22—proves far too much. The
fact that the statute awards to the prevailing party fees in which
her attorney may have a beneficial interest or a contractual right
does not establish that the statute “awards” the fees directly to
the attorney. For the reasons we have explained, the statute’s
plain text does the opposite—it “awards” the fees to the litigant,
and thus subjects them to a federal administrative offset if the
litigant has outstanding federal debts.
III
In an effort to avoid the Act’s
plain meaning, Ratliff argues that other provisions of EAJA,
combined with the SSA and the Government’s practice of paying some
EAJA fees awards directly to attorneys in Social Security cases,
render §2412(d) at least ambiguous on the question presented here,
and that these other provisions resolve the ambiguity in her favor.
Again we disagree. Even accepting §2412(d) as ambiguous on the
question presented, the provisions and practices Ratliff identifies
do not alter our conclusion that EAJA fees are payable to litigants
and are thus subject to offset where a litigant has outstanding
federal debts.
To begin with, §2412(d)(1)’s
provisions differentiate between attorneys and prevailing parties,
and treat attorneys on par with other service providers, in a
manner that forecloses the conclusion that attorneys have a right
to direct payment of subsection (d)(1)(A) awards. As noted above,
subsection (d)(1)(B) requires the prevailing party to submit a fee
application showing that she is otherwise “eligible to receive an
award” and, as a complement to that requirement, compels the
prevailing party to submit “an itemized statement
from any
attorney …
representing or appearing in behalf of the
party” that details the attorney’s hourly rate and time the
attorney spent on the case. (Emphasis added.) This language would
make little sense if, as Ratliff contends, §2412(d)’s “prevailing
party” language effectively refers to the prevailing litigant’s
attorney. Subsection (d)(1)(B) similarly makes clear that the
“prevailing party” (not her attorney) is the recipient of the fees
award by requiring the
prevailing party to demonstrate
that
her net worth falls within the range the statute
requires for fees awards. And EAJA’s cost provision further
underscores the point. That provision uses language identical to
that in the attorney’s fees provision to allow prevailing parties
to recover “the reasonable expenses of expert witnesses” and “any
study, analysis, engineering report, test, or project” necessary to
prepare “the party’s case,” §2412(d)(2)(A), yet Ratliff does not
argue that it makes costs payable directly to the vendors who
provide the relevant services.
Nor do the SSA provisions on which Ratliff
relies establish that subsection (d)(1)(A) fees awards are payable
to prevailing parties’ attorneys. It is true that the SSA makes
fees awards under that statute payable directly to a prevailing
claimant’s attorney. See 42 U. S. C. §406(b)(1)(A) (providing
that where a claimant “who was represented before the court by an
attorney” obtains a favorable judgment, “the court may determine
and allow as part of its judgment a reasonable fee for such
representation, not in excess of 25 percent of” the benefits award
and may certify the full amount of the statutory fees award
“for payment to such attorney out of, and not in addition
to, the amount of” the claimant’s benefits award (emphasis added)).
But the SSA’s express authorization of such payments undermines
Ratliff’s case insofar as it shows that Congress knows how to make
fees awards payable directly to attorneys where it desires to do
so. Given the stark contrast between the SSA’s express
authorization of direct payments to attorneys and the absence of
such language in subsection (d)(1)(A), we are reluctant to
interpret the latter provision to contain a direct fee requirement
absent clear textual evidence supporting such an
interpretation.
Ratliff contends that Congress’ 1985
amendments to §206(b) of EAJA supply just such evidence, at least
in Social Security cases. See §3(2), 99 Stat. 186, note following
28 U. S. C. §2412. The 1985 amendments address the fact that
Social Security claimants may be eligible to receive fees awards
under both the SSA and EAJA, and clarify the procedure that
attorneys and their clients must follow to prevent the windfall of
an unauthorized double recovery of fees for the same work. Section
206(b) provides that no violation of law occurs “if, where the
claimant’s attorney receives fees for the same work under both [42
U. S. C. §406(b) and 28 U. S. C. §2412(d)], the
claimant’s attorney refunds to the claimant the amount of the
smaller fee.” According to Ratliff, the fact that §206(b)
recognizes, or at least assumes, that an attorney will sometimes
“receiv[e]” fees under 28 U. S. C. §2412(d) suggests that we
should construe subsection (d)(1)(A) to incorporate the same direct
payments to attorneys that the SSA expressly authorizes.
This argument gives more weight to §206(b)’s
reference to attorney “recei[pt]” of fees than the reference can
bear. Section 206(b)’s ensuing reference to the attorney’s
obligation to “refun[d]” the amount of the smaller fee to the
claimant, which reference suggests that the award belongs to the
claimant in the first place, alone undercuts Ratliff’s reading of
“receives” as implying an initial statutory payment to the
attorney.[
Footnote 4] And
Ratliff’s reading is in any event irreconcilable with the textual
differences between EAJA and the SSA we discuss above. Thus, even
accepting Ratliff’s argument that subsection (d)(1)(A) is
ambiguous, the statutory provisions she cites resolve any ambiguity
in favor of treating subsection (d)(1)(A) awards as payable to the
prevailing litigant, and thus subject to offset where the litigant
has relevant federal debts.
The Government’s history of paying EAJA awards
directly to attorneys in certain cases does not compel a different
conclusion. The Government concedes that until 2006, it “frequently
paid EAJA fees in Social Security cases directly to attorneys.”
Reply Brief for Petitioner 13. But this fact does not alter our
interpretation of subsection (d)(1)(A)’s “prevailing party”
language or the Government’s rights and obligations under the
statute. As the Government explains, it most often paid EAJA fees
directly to attorneys in cases in which the prevailing party had
assigned its rights in the fees award to the attorney (which
assignment would not be necessary if the statute rendered the fees
award payable to the attorney in the first instance). The fact that
some such cases involved a prevailing party with outstanding
federal debts is unsurprising given that it was not until 2005 that
the Treasury Department modified the TOP to require offsets against
“miscellaneous” payments such as attorney’s fees awards. And as
Ratliff admits, the Government has since continued the direct
payment practice only in cases where “the plaintiff does not owe a
debt to the government and assigns the right to receive the fees to
the attorney.” Brief for Respondent 28 (boldface deleted). The
Government’s decision to continue direct payments only in such
cases is easily explained by the 2005 amendments to the TOP, and
nothing about the Government’s past payment practices altered the
statutory text that governs this case or estopped the Government
from conforming its payment practices to the Treasury Department’s
revised regulations. For all of these reasons, neither EAJA nor the
SSA supports Ratliff’s reading of subsection (d)(1)(A).
Our cases interpreting and applying 42 U.
S. C. §1988, which contains language virtually identical to
the EAJA provision we address here,[
Footnote 5] buttress this conclusion. Our most recent
cases applying §1988(b)’s “prevailing party” language recognize the
practical reality that attorneys are the beneficiaries and, almost
always, the ultimate recipients of the fees that the statute awards
to “prevailing part[ies].” See,
e.g.,
Venegas v.
Mitchell,
495 U. S. 82, 86 (1990).
But these cases emphasize the nonstatutory (contractual and other
assignment-based) rights that typically confer upon the attorney
the entitlement to payment of the fees award the statute confers on
the prevailing litigant. As noted above, these kinds of
arrangements would be unnecessary if, as Ratliff contends,
statutory fees language like that in §1988(b) and EAJA provides
attorneys with a statutory right to direct payment of awards. Hence
our conclusion that “the party, rather than the lawyer,”
id., at 87, is “entitle[d] to receive the fees” under
§1988(b),
id., at 88, and that the statute “controls what
the losing defendant must pay, not what the prevailing plaintiff
must pay his lawyer,”
id., at 90; see also
Evans
v.
Jeff D.,
475 U. S. 717, 730–732,
and n. 19 (1986) (explaining that the “language of [§1988] …
bestow[s] on the ‘prevailing party’ (generally plaintiffs) a
statutory eligibility for a discretionary award of attorney’s fees”
and does
not “besto[w] fee awards upon attorneys”
themselves (footnote omitted)). These conclusions apply with equal
force to the functionally identical statutory language here.
* * *
We reverse the Court of Appeals’
judgment and remand the case for further proceedings consistent
with this opinion.
It is so ordered.
Footnote 1
Section 3701 defines an administrative offset
as “withholding funds payable by the United States” to the debtor.
§3701(a)(1). An agency may effect such an offset by cooperating
with another agency to withhold such funds, or by notifying the
Treasury Department of the debt so Treasury may include it in
Treasury’s centralized offset program. See 31 CFR §§285.5(d)(2),
901.3(b)(1), (c). Alternatively, the Treasury Department may
attempt an administrative offset after receiving notice from a
creditor agency that a legally enforceable nontax debt has become
more than 180 days delinquent. See 31 U. S. C. §3716(c)(6); 31
CFR §§285.5(d)(1), 901.3(b)(1).
Footnote 2
Respondent Ratliff argues for the first time
in her merits brief before this Court that the 2005 amendments to
the FMS regulations exempt the EAJA fees award in this case from
administrative offset against Ree’s outstanding federal debt. See
Brief for Respondent 8, 46 (citing 31 CFR §285.5(e)(5)). We need
not decide this question because Ratliff did not raise the
regulations as a bar to offset in her brief in opposition to the
Government’s petition for a writ of certiorari, see this Court’s
Rule 15.2, or in the proceedings below.
Footnote 3
The split exists in the Social Security
context because the Social Security Act (SSA), 49 Stat. 620, as
amended, 42 U. S. C. §301
et seq., provides for
payment of attorney’s fees awards directly to counsel, see
§406(b)(1)(A), and until 2006 the Government in many cases treated
fees awards under EAJA the same way, see Reply Brief for Petitioner
13–14.
Footnote 4
Ratliff argues that fees awarded under 42 U.
S. C. §406(b) can never be “ ‘refund[ed]’ ” in this
sense because SSA fees are “
never paid initially to the
client.” Brief for Respondent 14 (emphasis in original). That is
not accurate. As we have explained, Social Security claimants and
attorneys normally enter into contingent-fee agreements that are
subject to judicial “review for reasonableness.”
Gisbrecht
v.
Barnhart,
535 U. S. 789, 809
(2002). Where the court allows a fee, §406(b) permits the
Commissioner to collect the approved fee out of the client’s
benefit award and to certify the fee for “payment to such attorney
out of” that award. §406(b)(1)(A). In such cases, the attorney
would “refun[d]” the fee to the client in the event that the
attorney also receives a (larger) EAJA award, because the attorney
“receive[d]” the SSA fee from the client’s funds. Similarly
inaccurate is Ratliff’s suggestion that our construction of EAJA
§206(b)’s reference to “refun[d]” would preclude attorneys from
collecting any fees from a prevailing party until both SSA and EAJA
payments are awarded. Our construction does not alter or preclude
what we have recognized as courts’ common practice of awarding EAJA
fees at the time a court remands a case to the Social Security
Administration (Administration) for benefits proceedings. Such
awards often allow attorneys to collect EAJA fees months before any
fees are awarded under 42 U. S.C §406(b), because §406(b) fees
cannot be determined until the Administration enters a final
benefits ruling. See
Shalala v.
Schaefer,
509 U. S. 292,
295–302 (1993).
Footnote 5
Section 1988(b) provides that in actions
covered by the statute and subject to exceptions not relevant here,
“the court, in its discretion, may allow the prevailing party,
other than the United States, a reasonable attorney’s fee.”
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