LIBRARY OF CONGRESS, ET AL., PETITIONERS V. TOMMY SHAW No. 85-54 In the Supreme Court of the United States October Term, 1985 The Solicitor General, on behalf of the Library of Congress, et al., petitions for a writ of certiorari to review the judgment of the United States Court of Appeals for the District of Columbia Circuit in this case. Petition for a Writ of Certiorari to the United States Court of Appeals for the District of Columbia Circuit PARTIES TO THE PROCEEDING In addition to the parties named in the caption, petitioners include Daniel J. Boorstin, Librarian of Congress; Donald C. Curran, Associate Librarian of Congress; and John J. Kominsky, General Counsel, Library of Congress. TABLE OF CONTENTS Opinion below Jurisdiction Statute involved Statement Reasons for granting the petition Conclusion Appendix A pappendix B Appendix C Appendix D Appendix E Appendix F OPINION BELOW The opinion of the court of appeals (App., infra, 1a-56a) is reported at 747 F.2d 1469. The opinion and judgment of the district court (App., infra, 57a-70a) are unreported. JURISDICTION The judgment of the court of appeals (App., infra, 71a-72a) was entered on November 6, 1984; an order denying rehearing (App., infra, 73a-75a) was entered on February 20, 1985. On May 8, 1985, the Chief Justice extended the time within which to file a petition for a writ of certiorari to June 27, 1985. On June 21, 1985, the Chief Justice further extended the time for filing the petition to July 12, 1985. The jurisdiction of this Court is invoked under 28 U.S.C. 1254(1). STATUTE INVOLVED 42 U.S.C. 2000e-5(k) provides: In any action or proceeding under this subchapter the court, in its discretion, may allow the prevailing party, other than the (Equal Employment Opportunity) Commission or the United States, a reasonable attorney's fee as part of the costs, and the Commission and the United States shall be liable for costs the same as a private person. QUESTION PRESENTED Whether Section 706(k) of the Civil Rights Act of 1964, 42 U.S.C. 2000e-5(k), which makes the United States liable for attorneys' fees "the same as a private person," waives the federal government's sovereign immunity so as to permit the recovery of interest on attorneys' fee awards against the United States. STATEMENT 1. In 1976 and 1977 respondent filed administrative complaints charging his employer, the Library of Congress (Library), with racial discrimination. These complaints were settled in August 1978, when the Library agreed to award respondent back pay and to take certain other remedial measures. App., infra, 2a-3a. Shortly afterwards, however, after consultation with the Comptroller General, the Library informed respondent that it lacked the authority to provide such relief absent a specific finding of racial discrimination (App., infra, 3a & n.7). Respondent then brought suit, arguing that Title VII of the Civil Rights Act of 1964, as amended by the Equal Employment Opportunity Act of 1972 (Title VII), 42 U.S.C. 2000e et seq., authorized the Library to afford the relief specified in the settlement agreement (App., infra, 3a-4a). On September 14, 1979, the United States District Court for the District of Columbia ruled in respondent's favor on the merits (see App., infra, 4a). The court accordingly held (see ibid.) that respondent's attorney /1/ was entitled to an award of fees under the Title VII attorneys' fees provision, which states that "the court, in its discretion, may allow the prevailing party * * * a reasonable attorney's fee as part of the costs, and * * * the United States shall be liable for costs the same as a private person." 42 U.S.C. 2000e-5(k). But the district court declined to set the fee award pending a decision by the en banc District of Columbia Circuit in Copeland v. Marshall, 641 F.2d 880 (1980), which the district court anticipated would provide guidance on the standards applicable in the computation of attorneys' fees. See App., infra, 4a, 60a. The court of appeals' decision in Copeland ultimately issued almost one year later, on September 2, 1980. Over one additional year passed before the district court, on November 4, 1981, issued an order setting fees and awarding them to respondent's attorney. The court began by fixing the so-called "lodestar" (see App., infra, 2a n.2) based on the number of hours worked and the attorney's 1978 hourly rate (id. at 5a, 62a-66a). After making a variety of adjustments to the lodestar that are not relevant here (see id. at 5a, 66a-68a), the district court declared that "(t)his case should have ended in August 1978, or at the latest in November of that year. If (respondent's attorney) had been compensated at about that time, he could have invested the money at an average yield of not less than 10% per year. It is the fault of neither (respondent) nor (his attorney) that payment was not made sooner." Id. at 68a (footnote omitted). Because three years had passed since late 1978, the court accordingly ordered "an upward adjustment (of the fee) of 30% for delay" (ibid.). 2. On appeal, a divided panel of the court of appeals rejected the Library's contention that the 30% delay adjustment was improper because Congress in Section 2000e-5(k) had not authorized the award of interest against the United States. The panel majority acknowledged that the delay adjustment was interest because it "was designed to reimburse (respondent's) counsel for the decrease in value of his uncollected legal fee between the date on which he concluded his legal services and the court's estimated date of likely actual receipt" (App., infra, 11a (footnote omitted); see id. at 12a-13a & n.41). And the court acknowledged the force of the so-called "no-interest rule" -- that the United States may not be held liable for interest in the absence of an express waiver of its sovereign immunity (id. at 13a). The court of appeals held, however, that Section 2000e-5(k) is such a waiver. The court noted that private parties generally may be held liable for interest on fee awards under Title VII, and that Title VII makes the United States liable for costs "'the same as a private person.'". This, the court concluded, is an "express" statutory waiver as to interest, the range of which "is defined in unmistakable language." App., infra, 15a. The court also based its holding on an alternative ground: that "the traditional rigor of the sovereign-immunity doctrine (is relaxed) when a statute measures the liability of the United States by that of private persons" (id. at 24a). /2/ Judge Ginsburg dissented. She agreed that the 30% adjustment is interest, but concluded that nothing in either Section 2000e-5(k) or its legislative history so much as adverts to an intent to overcome the "no-interest rule" (App., infra, 41a). Judge Ginsburg also noted that sovereign immunity prevents Title VII plaintiffs from recovering interest on back pay awards entered against the government, and found it unlikely that Congress would have given Title VII attorneys more favorable treatment than their clients (id. at 42a-44a). She therefore concluded that Congress could not "'plainly' (have) resolved an immunity waiver issue never even framed in the course of its deliberations" (id. at 41a). /3/ The Library's petition for reharing en banc was denied, with Judges Ginsburg, Bork, Scalia, and Starr dissenting (App., infra, 73a-75a). REASONS FOR GRANTING THE PETITION The decision below announces an expansive reformulation of the sovereign immunity doctrine. For more than a century, this Court consistently has held that federal statutes should not be deemed to allow interest to run on a recovery against the United States unless Congress affirmatively desired that result and announced its intentions in unambiguous terms. The court of appeals' contrary conclusion -- that 42 U.S.C. 2000e5(k) effected a waiver of sovereign immunity as to interest despite the absence of anything in the statute or its legislative history indicating an affirmative intention on the part of Congress to do so /4/ -- cannot be reconciled with these decisions. By departing from the settled law in this area, the District of Columbia Circuit has precipitated a conflict in principle with the decisions of two other courts of appeals, which have held that language in a statute virtually identical to Section 2000e-5(k) does not make the government liable for interest on attorneys' fees. Perhaps more important, it has opened the federal treasury to a potentially wide range of monetary awards that were unanticipated, and not consciously authorized, by Congress. And it has effectively substituted the judgment of the courts for that of Congress in determining when the federal government's sovereign immunity is appropriately deemed waived. In these circumstances, review of the decision below by this Court is warranted. 1. It is common ground that an award of interest against the United States is permissible only if Congress has waived the government's sovereign immunity as to such an award. In determining whether Congress has done so, this Court has indicated that analysis should begin with the principle that "(w)aivers of immunity must be 'construed strictly in favor of the sovereign,' McMahon v. United States, 342 U.S. 25, 27 (1951), and not 'enlarge(d) * * * beyond what the language requires,' Eastern Transp. Co. v. United States, 272 U.S. 675, 686 (1927)." Ruckelshaus v. Sierra Club, 463 U.S. 680, 685-686 (1983). /5/ And, as the court below acknowledged (App., infra, 13a), even when Congress has expressly permitted collection on substantive claims against the United States, the "traditional rule' (is) that interest on (such) claims cannot * * * be recovered" unless the awarding of interest was affirmatively and separately contemplated by Congress. United States v. Alcea Band of Tillamooks, 341 U.S. 48, 49 (1951). The court of appeals found that Section 2000e-5(k) evidences such congressional intent -- despite the omission from the statute of any reference to interest (see App., infra, 17a n.49) -- because private employers may be held liable for interest on attorneys' fees under Title VII, and the statute generally measures the liability of the United States against that of private defendants (App., infra, 14a-16a). /6/ The court of appeals' approach, however, cannot be reconciled with the analysis that this Court consistently has applied in resolving claims for interest against the federal government. a. Some 100 years ago, the Court was relying on what already was a "well-settled principle, that the United States are not liable to pay interest on claims against them, in the absence of express statutory provision to that effect." United States ex rel. Angarica v. Bayard, 127 U.S. 251, 260 (1888). Since that time, the Court repeatedly has reaffirmed the notion that, "(a)part from constitutional requirements, in the absence of specific provision by contract or statute, or 'express consent * * * by Congress,' interest does not run on a claim against the United States." United States v. Louisiana, 446 U.S. 253, 264-265 (1980), quoting Smyth v. United States, 302 U.S. 329, 353 (1937). /7/ Thus, a waiver of immunity is effective only "where interest is given expressly by an act of Congress, either by the name of interest or by that of damages." Bayard, 127 U.S. at 260. "The waiver cannot be by implication or by use of ambiguous language" (Holly v. Chasen, 639 F.2d 795, 797 (D.C. Cir.), cert. denied, 454 U.S. 822 (1981)); the "consent necessary to waive the traditional immunity must be express, and it must be strictly construed." United States v. N.Y. Rayon Importing Co., 329 U.S. 654, 659 (1947). Accord Tillamooks, 341 U.S. at 49; Albrecht v. United States, 329 U.S. 599, 605 (1947); United States v. Thayer-West Point Hotel Co., 329 U.S. 585, 590 (1947); United States v. Goltra, 312 U.S. 203, 207 (1941); United States v. Worley, 281 U.S. 339, 341 (1930); Boston Sand Co. v. United States, 278 U.S. 41, 46 (1928); United States v. North American Trans. & Trading Co., 253 U.S. 330, 336 (1920); United States v. North Carolina, 136 U.S. 211, 216 (1890); United States v. Sherman, 98 U.S. 565, 567-568 (1878). /8/ In applying these principles, the courts have held virtually without exception that the government's immunity can be found to have been waived in this context only when Congress affirmatively considered the interest question and unambiguously affirmed its intention that interest should be available. See Holly, 639 F.2d at 797. Cf. Lehman v. Nakshian, 453 U.S. 156, 168 (1981); United States v. King, 395 U.S. 1, 4 (1969). This and other courts therefore have held, for example, that interest could not be awarded when the United States was required to disgorge funds under an agreement that had permitted it to collect and use revenues from disputed lands pending a determination of ownership (United States v. Louisiana, 446 U.S. at 261-264), or when, "in the adjustment of mutual claims" with a private party, the United States was awarded interest on its claims. North American Trans. & Trading Co., 253 U.S. at 336; United States v. Verdier, 164 U.S. 213, 218-219 (1896). Interest also has been ruled unavailable under statutes or contracts directing the United States to pay the "'amount equitably due'" (Tillson v. United States, 100 U.S. 43, 46 (1879)), or "any * * * equitable relief * * * the court deems appropriate" (Blake v. Califano, 626 F.2d 891, 893 (D.C. Cir. 1980), or "just compensation" (e.g., Tillamooks, 341 U.S. at 49; Goltra, 312 U.S. at 207-211) -- even though "just compensation" for constitutional purposes has long been understood to require payment of interest (see note 7, supra). Indeed, the Court has indicated that even statutory language basing federal liability "Upon the same principle and measure * * * as in like cases * * * between private parties'" generally "ha(s) been understood * * * not to carry interest." Boston Sand, 278 U.S. at 46, 47. /9/ b. The approach used by the court below in its analysis of Section 2000e-5(k) cannot be squared with this settled law. That statute, of course, makes no reference to interest, express or otherwise. And as Judge Ginsburg observed, an examination of its legislative history indicates that the interest issue "never even (was) framed in the course of (Congress's) deliberations" (App., infra. 41a), let alone addressed and resolved. Cf. Segar v. Smith, 738 F.2d 1249, 1296 (D.C. Cir. 1984), cert denied, No. 84-1200 (May 20, 1985); Blake, 626 F.2d at 894). /10/ Section 2000e-5(k) thus stands in sharp contrast to the other statutes in which Congress has permitted interest to run on substantive recoveries against the United States. Those provisions in terms provide for awards of interest, and spell out the "procedures which a plaintiff must follow to perfect his entitlement to interest, the rate of interest which the United States will pay on each type of judgment, and the time when interest will start to run and the time it will stop." Arvin v. United States, 742 F.2d 1301, 1303 (11th Cir. 1984). See Holly, 639 F.2d at 797-798. /11/ There is no reason to believe that Congress -- which was, of course, legislating against the background of the "no-interest rule" -- intended Section 2000e-5(k) to signal a strikingly backhanded and understated "depart(ure) from its usual practice in this area." Nakshian, 453 U.S. at 162. /12/ See id. at 161, 168-169 (holding trial by jury impermissible in suits against the United States under the Age Discrimination in Employment Act (ADEA), 29 U.S.C. 633a, because Congress "has almost always conditioned (waiver of sovereign immunity) upon a plaintiff's relinquishing any claim to a jury trial" and has not "affirmatively and unambiguously" provided that right in the ADEA). Cf. Sierra Club, 463 U.S. at 685 (when Congress is asserted to have departed from traditional fee shifting rules "a clear showing that this result was intended is required" (footnote omitted)). Indeed, two courts of appeals have relied on precisely these considerations in holding that awards of interest against the United States are not authorized by the attorneys' fee provision of the Equal Access to Justice Act (28 U.S.C. 2412(b) (making the United States liable for fees "to the same extent that any other party would be liable under the common law or under the terms of any statute which specifically provides for such an award")), which in relevant part is virtually identical to Section 2000e-5(k). /13/ Arvin, 742 F.2d at 1304; Knights of the Ku Klux Klan v. East Baton Rouge Parish School Board, 735 F.2d 895, 902 (5th Cir. 1984). /14/ Title VII itself, in fact, contains considerable evidence that the congressional scheme was not intended to permit attorneys to obtain interest on their fees in cases against the United States. While Title VII plaintiffs may be awarded interest on back pay awards against private employers (see, e.g., Blake, 626 F.2d at 893 & n.3 and cases cited), it is settled law that interest does not run on back pay recovered from the United States. Segar, 738 F.2d at 1296; Saunders v. Claytor, 629 F.2d 596, 598 (9th Cir. 1980), cert. denied, 450 U.S. 980 (1981); Blake, 626 F.2d at 984; deWeever v. United States, 618 F.2d 685, 686 (10th Cir. 1980); Fischer v. Adams, 572 F.2d 406, 411 (1st Cir. 1978); Richerson v. Jones, 551 F.2d 918, 925 (3d Cir. 1977); Cross v. United States Postal Service, 733 F.2d 1327, 1329 affirmed by an equally divided en banc court, 733 F.2d 1332 (8th Cir. 1984), cert. denied, No. 84-979 (Mar. 18, 1985). Had Congress given any attention to the interest question -- and an award of interest could have been affirmatively authorized only if Congress did so -- it is difficult to imagine that, in a single legislative package, it would have chosen to accord plaintiffs' lawyers more favorable treatment than that accorded plaintiffs themselves. 2. The court of appeals' novel approach to sovereign immunity will have significant and, in many cases, unpredictable effects. Its direct impact in the Title VII area alone will be substantial: The General Accounting Office informs us that, in fiscal year 1984, the United States made payments to plaintiffs in over 150 Title VII suits (in almost all of which, presumably, liability for attorneys' fees attached). And the availability of prejudgment interest can be expected to affect not only the dollar amount of the fee awards in such cases (which the General Accounting Office informs us totals several million dollars annually) but also the conduct of a substantial body of employment litigation. The court of appeals' analysis, in any event, is plainly applicable in areas beyond Title VII. That it leads to departures from this Court's precedents and the conclusions of other circuits already is evident: as Judge Ginsburg noted, the panel majority's treatment of Section 2000e-5(k) has "precipitat(ed) an apparent circuit split" (App., infra. 56a n.14) with decisions holding that the virtually identical fees provision of the Equal Access to Justice Act does not authorize interest awards. Arvin, 742 F.2d at 1304; East Baton Rouge, 735 F.2d at 902. /15/ The analysis used below thus threatens one of the principal purposes served by the requirement that Congress expressly waive the "no-interest rule" -- the protection of the treasury from unexpected liabilities arising at unanticipated times. This danger is particularly noticeable where, as here, an award of prejudgment interest is concerned, for such liability may be found to have attached years after the fact for reasons that were wholly beyond the government's control. In this case, for example, the district court withheld assessment of an attorneys' fee for one year pending the decision in Copeland and for a second year while the fee issue was under submission, and then ordered the government to pay interest on a fee generated three years earlier. See page 3, supra. Most basically, the court of appeals' conclusion that courts may infer waivers of immunity from ambiguous statutory language infringes in a direct way on the congressional prerogative to waive the government's sovereign immunity. For over 100 years, Congress has been legislating against the background of -- and presumably relying upon -- the "no-interest rule" that consistently has been propounded by this Court. If congressional legislation is to be interpreted in light of a new controlling principle, it is for this Court to make that judgment. CONCLUSION The petition for a writ of certiorari should be granted. Respectfully submitted. CHARLES FRIED Acting Solicitor General RICHARD K. WILLARD Acting Assistant Attorney General KENNETH S. GELLER Deputy Solicitor General CHARLES A. ROTHFELD Assistant to the Solicitor General WILLIAM KANTER AL J. DANIEL, JR. Attorneys July, 1985 /1/ The attorney whose fee is at issue here, Shalon Ralph, represented respondent in 1978, while the case was in its administrative phase; he also provided some assistance during the district court proceedings (App., infra, 4a n.13). The fee claims of respondent's other counsel have been settled (ibid.). References to "respondent's attorney" in this petition therefore are directed only at Ralph. /2/ Although the court of appeals thus held that attorneys may be awarded interest under Section 2000e-5(k), it nonetheless remanded the case to the district court for further proceedings. In the majority's view, "a delay-in-payment adjustment (is) appropriate only where the lodestar is the per-hour charge to clients who pay when billed" (App., infra, 8a n.28). The court suggested, however, that a lodestar may "represent() a higher rate charged clients who sue under fee-shifting statutes," in which case the figure might already "ha(ve) taken into account the pecuniary disadvantage resulting from the lengthy wait for payment ordinarily encountered under such statutes" (ibid.). In such circumstances, the panel concluded, "an upward adjustment for delay would * * * result in the attorney being paid twice for the delay" (ibid.). The court of appeals therefore instructed the district court, on remand, to determine whether the lodestar had been based on a rate that "has already taken into account the pecuniary disadvantage resulting from the lengthy wait for payment" (id. at 37a). If so, the district court was to vacate its 30% delay adjustment (ibid.). The court of appeals also noted that, following oral argument in the case, it had ordered the government to pay the undisputed portion of the attorney's fee (App., infra, 6a n.24); that payment has since been made. /3/ Although Judge Ginsburg thus found no justification in the statute for an award of interest against the United States, she suggested that, under Murray v. Weinberger, 741 F.2d 1423 (D.C. Cir. 1984), there is a meaningful distinction between "interest" and an "adjustment for delay in receipt of payment" (App., infra, 38a). She explained: "(j)ust as an attorney setting an hourly rate in a contingent fee case may factor in the risk that the cause may not prevail, so too an attorney embarking on services for which he or she anticipates payment ultimately, but not promptly, may factor in the expected delay" (id. at 38a-39a). Judge Ginsburg therefore would require a district court to determine whether an attorney's historic rates (those that he charged at the time that he did the work at issue) were enhanced by such a delay factor. If so, the attorney would be entitled to reimbursement at that enhanced rate -- but not to any additional recovery because of actual delay in receiving fees. If the historic rate did not contain a component for anticipated delay in the receipt of fees, however, Judge Ginsburg in an "appropriate" case would permit the district court to use current market rates rather than historic rates in computing the lodestar, if doing so would not generate a windfall for the attorney. Id. at 50a-53a. /4/ The case before the court of appeals involved only prejudgment interest. As Judge Ginsburg noted (App., infra, 44a-45a n.5), however, the logic of the court of appeals' holding applies to post- as well as prejudgment interest. /5/ Accord Lehman v. Nakshian, 453 U.S. 156, 161 (1981); United States v. Testan, 424 U.S. 392, 400-401 (1976); Soriano v. United States, 352 U.S. 270, 276 (1957); United States v. Sherwood, 312 U.S. 584, 586-587, 590 (1941). /6/ Although respondent argued to the contrary in the court of appeals (see App., infra, 10a), both the majority and the dissenting opinions correctly concluded that the 30% upward adjustment -- which explicitly was intended to compensate respondent's attorney for delay in the receipt of payment (see id. at 11a-12a) -- was "interest." See United States v. North American Transp. & Trading Co., 253 U.S. 330, 338 (1920); Blake v. Califano, 626 F.2d 891, 895 (D.C. Cir. 1980); United States v. Mescalero Apache Tribe, 518 F.2d 1309, 1322 (Ct. Cl. 1975), cert. denied, 425 U.S. 911 (1976). /7/ The "constitutional requirements" arise in takings under the Just Compensation Clause; the Court has held that just compensation must include a payment for interest. See, e.g., Tillamooks, 341 U.S. at 49; Albrecht v. United States, 329 U.S. 599, 605 (1947); Smyth, 302 U.S. at 353-354. /8/ Several of these cases involved the construction of predecessors to 28 U.S.C. 2516(a), which permits an award of interest on judgments against the United States in the Claims Court "only under a contract or Act of Congress expressly providing for payment thereof." The Court repeatedly has emphasized, however, that the statute simply "codifies the traditional rule" (N.Y. Rayon, 329 U.S. at 658) that the government is immune "from the burden of interest unless it is specifically agreed upon by contract or imposed by legislation." Goltra, 312 U.S. at 207 (footnote omitted). See Thayer, 329 U.S. at 588; Blake, 626 F.2d at 894 n.6. /9/ There is thus no merit to the court of appeals' suggestion that the traditional "no-interest rule" is inapplicable when the statute at issue "measures the liability of the United States by that of private persons" (App., infra, 24a-36a). Most of the decisions cited by the court of appeals on this pointed stand only for the unexceptionable proposition that courts should not frustrate "deliberate" waivers of sovereign immunity. Canadian Aviator, Ltd. v. United States, 324 U.S. 215, 222 (1945) (cited at App., infra, 29a); see, e.g., Indian Towing Co. v. United States, 350 U.S. 61, 69 (1955) (cited at App., infra, 27a); United States v. Yellow Cab Co., 340 U.S. 543, 548 (1951) (cited at App., infra 28a). Nor does Standard Oil Co. v. United States, 267 U.S. 76 (1925) (cited at App., infra, 33a-34a) provide support for the court of appeals' conclusion. That decision held the United States liable for interest on insurance policies issued under the War Risk Insurance Act of 1914, ch. 293, 38 Stat. 711 et seq., only because that insurance program was a for-profit venture making use of standard commercial insurance contracts. See United States v. Worley, 281 U.S. 339, 342 (1930). The Court has declined to apply Standard Oil outside of its specific commercial and contractual context. Worley, 281 U.S. at 343-344. /10/ Section 2000e-5(k) was enacted in its current form as Section 706(k) of the Civil Rights Act of 1964, Pub.L. No. 88-352, 78 Stat. 261. The legislative history of the provision is "sparse" (Christiansburg Garment Co. v. EEOC, 434 U.S. 412, 420 (1978)), and so far as we have been able to determine it contains not a single reference to the availability of interest. Similarly, we have been unable to uncover anything bearing on the interest question in the legislative history of the Equal Employment Opportunity Act of 1972, Pub.L. No. 92-261, 86 Stat. 103, 42 U.S.C. 2000e et seq., which made Title VII applicable to federal employees. See generally H.R. Rep. 92-899, 92d Cong., 2d Sess. (1972); S. Rep. 92-681, 92d Cong., 2d Sess. (1972); H.R. Rep. 92-238, 92d Cong., 1st Sess. (1971); S. Rep. 92-415, 92d Cong., 1st Sess. (1971). /11/ See 26 U.S.C. 7426(g) (providing for interest in cases of wrongful levy by the Internal Revenue Service running from the date of the levy); 28 U.S.C. 1961(c)(2) (providing for interest on final judgments of the United States Court of Appeals for the Federal Circuit in claims against the United States); 28 U.S.C. 2411 (providing for interest on overpayments of federal tax running from the date of overpayment); 31 U.S.C. 1304(b)(1)(A) (appropriating funds for interest on certain district court judgments after an unsuccessful appeal by the United States "and then only from the date of filing of the transcript of the judgment with the Comptroller General through the day before the date of the mandate of affirmance"); 31 U.S.C. 1304(b)(1)(B) (appropriating funds in similar circumstances for interest on decisions of the Federal Circuit and the Claims Court after affirmance by the Supreme Court (see 28 U.S.C. 2516(b)). Cf. 31 U.S.C. 3728(c) (providing for the payment of interest on debts wrongfully withheld by the Comptroller General in certain set-off situations); 40 U.S.C. 258a (providing for the payment of interest as part of the compensation in proceedings for the taking of property by the United States). Congress also has provided that "(i)nterest on a claim against the United States shall be allowed in a judgment of the United States Claims Court only under a contract or Act of Congress expressly providing for payment thereof." 28 U.S.C. 2516(a). /12/ This is particularly true where, as here, it is claimed that Congress implicitly allowed an award of prejudgment interest. In the absence of exceptional circumstances or a statutory provision to the contrary, the usual rule is that such interest may be awarded only from the date on which the damages were liquidated or readily calculable. See generally General Motors Corp. v. Devex Corp., 461 U.S. 648, 651-652 & n.5 (1983), and cases cited; Rodgers v. United States, 332 U.S. 371, 373 (1947). Cf. Perkins V. Standard Oil Co. of California, 487 F.2d 672, 675 (9th Cir. 1973) (under 15 U.S.C. 15, "claims for 'reasonable' attorneys' fees, being unliquidated until they are determined by a court, are not entitled to pre-judgment interest as would be certain liquidated claims"); Copper Liquor, Inc. v. Adolph Coors Co., 701 F.2d 542, 544 & n.3 (5th Cir. 1983) (affirming an award of interest on attorneys' fees under 15 U.S.C. 15 only from the time of the "judgment recognizing the right to costs and fees"). Had Congress intended to depart from that traditional rule, it presumably "would have used explicit language to (that) effect." Sierra Club, 463 U.S. at 685 n.7. /13/ Other provisions of the Equal Access to Justice Act authorizing fee awards against the United States when the government's position in litigation was not substantially justified, 5 U.S.C. 504 and 28 U.S.C. 2412(d), expired on October 1, 1984. Sections 203(c) and 204(c), Pub. L. No. 96-481, 94 Stat. 2327, 2329. Congress is currently considering a bill that would reenact these provisions, however. H.R. 2378, 99th Cong., 1st Sess. (1985). See H.R. Rep. 99-120, 99th Cong., 1st Sess. (1985). Significantly, this bill would add an explicit provision to 28 U.S.C. 2412 allowing for interest on fee awards, but only if the government challenges the award of fees on appeal and loses. H.R. 2378, supra, Section 2(e). /14/ The Second Circuit has affirmed a district court judgment that included an award of interest against the Department of Health and Human Services under 28 U.S.C. 2412(b)'s companion provision, 28 U.S.C. 2412(d)(1)(A) (see note 13, supra), but it did so without discussion. Marziliano v. Heckler, 728 F.2d 151, 155, 159 (2d Cir. 1984). See East Baton Rouge, 735 F.2d at 902 n.8. /15/ The panel majority itself noted that the attorneys' fees provision of the Equal Access to Justice Act is "strikingly similar" to Section 2000e-5(k), and seemingly disapproved the holding in Arvin (App., infra, 29a-30a & n.107). APPENDIX