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No. 10686062
United States Court of Appeals for the Ninth Circuit
Goldtooth v. United States Office of Navajo and Hopi Indian Relocation
No. 10686062 · Decided October 1, 2025
No. 10686062·Ninth Circuit · 2025·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
October 1, 2025
Citation
No. 10686062
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
ELSIE BENALLY; FERN No. 23-3978
BENALLY; LUCILLE
D.C. No.
BENALLY; NORMAN BENALLY,
3:22-cv-08100-
DLR
Plaintiffs - Appellants,
v. ORDER
UNITED STATES OFFICE OF
NAVAJO AND HOPI INDIAN
RELOCATION, an Administrative
Agency of the United States,
Defendant - Appellee.
TONY GOLDTOOTH, No. 23-4202
D.C. No.
Plaintiff - Appellant,
3:22-cv-08120-
DLR
v.
UNITED STATES OFFICE OF
NAVAJO AND HOPI INDIAN
RELOCATION,
Defendant - Appellee.
2 BENALLY V. ONHIR
Filed October 1, 2025
Before: Richard A. Paez, Marsha S. Berzon, and John B.
Owens, Circuit Judges.
SUMMARY *
Equal Access to Justice Act / Attorney’s Fees and Costs
The panel granted plaintiffs’ motions for an award of
attorney’s fees and costs under the Equal Access to Justice
Act, 28 U.S.C. § 2412 (“EAJA”).
Plaintiffs applied for relocation benefits under the
Navajo-Hopi Settlement Act. The United States Office of
Navajo and Hopi Indian Relocation (“ONHIR”) denied their
applications for relocation benefits, and an independent
hearing officer affirmed the denial of benefits. Plaintiffs
sought review in district court. The district court rejected
their suits and granted summary judgment to the
government. On appeal, this court reversed the district
court’s judgments and remanded to ONHIR for further
proceedings. Plaintiffs moved for fees and costs under the
EAJA.
The panel held that plaintiffs incurred fees with the
meaning of the EAJA. The panel rejected ONHIR’s
argument that plaintiffs did not incur fees for purposes of the
EAJA because they were not themselves responsible for
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
BENALLY V. ONHIR 3
paying the fees—the Navajo Nation paid their attorney’s
fees, pursuant to a contractual agreement with private
counsel to represent plaintiffs. The panel held that the
contractual relationship between plaintiffs, their counsel,
and the Navajo Nation, and whether that contract requires
plaintiffs to remit the fees award to the Navajo Nation, does
not preclude plaintiffs’ entitlement to an order requiring the
government to pay them, as prevailing parties, an attorney’s
fee award under the EAJA.
The panel held that ONHIR’s denial of relocation
benefits to plaintiffs was not substantially justified because
ONHIR’s decisions in the underlying merits cases were not
supported by substantial evidence. Accordingly, the panel
held that it need not determine whether the government’s
litigation position was substantially justified, and awarded
plaintiffs fees and costs under the EAJA.
ORDER
In 2006, Tony Goldtooth (“Goldtooth”) applied for
relocation benefits under the Navajo-Hopi Settlement Act
(the “Settlement Act”), Pub. L. No. 93-531, 88 Stat. 1712
(1974). Between May 2009 and August 2010, Elsie, Fern,
Lucille, and Norman Benally (the “Benallys”) also applied
for relocation benefits. The United States Office of Navajo
and Hopi Indian Relocation (“ONHIR” or “the
government”) denied their applications. An independent
hearing officer (“IHO”) affirmed the denial of benefits.
Goldtooth and the Benallys then, separately, filed suit in
district court seeking judicial review of ONHIR’s decisions.
The district court rejected both Goldtooth’s and the
4 BENALLY V. ONHIR
Benallys’ suits, granting summary judgment to the
government in both cases.
On appeal, we reversed the judgments and remanded the
cases to ONHIR for further proceedings before the IHO. See
Goldtooth v. Off. of Navajo & Hopi Indian Relocation, No.
23-4202, 2024 WL 4866953 (9th Cir. Nov. 22, 2024);
Benally v. Off. of Navajo & Hopi Indian Relocation, No. 23-
3978, 2024 WL 4971965 (9th Cir. Dec. 4, 2024). Goldtooth
and the Benallys now each move for an award of attorney’s
fees and costs under the Equal Access to Justice Act, 28
U.S.C. § 2412 (“EAJA”). 1
The EAJA provides, in relevant part, that “[the] court
shall award to a prevailing party other than the United States
fees and other expenses . . . incurred by that party in any civil
action (other than cases sounding in tort), including
proceedings for judicial review of agency action, brought by
or against the United States . . . unless the court finds that the
position of the United States was substantially justified or
that special circumstances make an award unjust.” 28
U.S.C. § 2412(d)(1)(A). ONHIR argues that we should deny
the motions because (1) neither Goldtooth nor the Benallys
“incurred” fees for purposes of the EAJA, and (2) the
government’s position in each case was substantially
justified. We conclude that ONHIR’s arguments lack merit.
Because Goldtooth and the Benallys are otherwise eligible
for an award of fees under the EAJA, we grant both motions
for attorney’s fees.
1
Because these motions raise the same issues, we consolidate them for
disposition.
BENALLY V. ONHIR 5
I.
To provide context for the motions, we briefly recount
the background of these cases. Tony Goldtooth and siblings
Elsie, Fern, Lucille, and Norman Benally applied to ONHIR
for relocation benefits under the Settlement Act. ONHIR
denied their applications. Goldtooth and the Benallys
appealed the denial of benefits to an IHO. After conducting
a hearing in Goldtooth’s case and a consolidated hearing for
the Benallys’ cases, the IHO denied their applications.
Goldtooth sought judicial review of the agency’s
decision in the district court. Finding no error in the IHO’s
decision, the court granted summary judgment in favor of
ONHIR. Goldtooth then appealed the district court’s
judgment to this court. We reversed and remanded the case
to ONHIR for further proceedings. Specifically, we
concluded that the IHO’s adverse credibility determination
relied on “contradictions [that] were based on
mischaracterizations of the record” relating to the frequency
of Goldtooth’s returns to Hopi Partitioned Lands to assist his
grandmother on the family homesite, and so was not
supported by substantial evidence. Goldtooth, No. 23-4202,
2024 WL 4866953, at *1.
The Benallys collectively sought judicial review in the
district court. The district court, again finding no error in the
IHO’s rulings, granted summary judgment in favor of
ONHIR. They subsequently appealed to this court. As in
Goldtooth’s appeal, we reversed and remanded to the agency
for further proceedings. We held that the IHO’s adverse
credibility findings for Elsie, Fern, Norman Benally, and
6 BENALLY V. ONHIR
their mother, Mabel, 2 who testified on behalf of the siblings,
were not supported by substantial evidence and were partly
based on speculation and conjecture about the family’s
grazing activities on Hopi Partitioned Lands. Benally, No.
23-3978, 2024 WL 4971965, at *1.
After we reversed and remanded their respective cases,
Goldtooth and the Benallys filed motions for attorney’s fees
under the EAJA. Goldtooth seeks $49,716.54 in fees and
costs, and the Benallys seek $44,907.12 in fees and costs.
The government does not dispute that Goldtooth and the
Benallys are prevailing parties under the EAJA, or that they
meet the statute’s income requirement limiting eligible
individuals to a net worth not exceeding $2,000,000. See 28
U.S.C. § 2412(d)(1)(A), (d)(2)(B). Nor does the
government contest the amount of fees that Plaintiffs seek.
We therefore discuss only whether Plaintiffs incurred
attorney’s fees under the EAJA and whether the
government’s position in each case was substantially
justified.
II.
“For the court to award attorney’s fees and costs
pursuant to the EAJA, it must be shown that (1) the plaintiff
is the prevailing party; (2) the government has not met its
burden of showing that its positions were substantially
justified or that special circumstances make an award unjust;
and (3) the requested attorney’s fees and costs are
reasonable.” Perez-Arellano v. Smith, 279 F.3d 791, 793
(9th Cir. 2002) (citing 28 U.S.C. § 2412(d)(1)(A)). The
2
Lucille Benally did not testify at the consolidated hearing and relied on
the testimony of her mother and siblings.
BENALLY V. ONHIR 7
plaintiff also must have “incurred” the fees in the civil
action. 28 U.S.C. § 2412(d)(1)(A).
A.
ONHIR first argues that Plaintiffs did not incur fees for
purposes of the EAJA because they were not themselves
responsible for paying the fees. Instead, the Navajo Nation
paid their attorney’s fees, pursuant to a contractual
agreement with private counsel to represent Plaintiffs. The
fee arrangements in Goldtooth’s and the Benallys’ cases
were identical: their counsel did not bill them for their
services, and they did not pay any attorney’s fees or costs.
Plaintiffs, however, agreed to remit to the Navajo Nation any
attorney’s fees that they recovered in their litigation.
It is undisputed that Plaintiffs’ attorneys were paid
through the Navajo-Hopi Legal Services Program, which
operates within the Navajo Nation Department of Justice to
aid tribal members in pursuing claims for relocation benefits.
ONHIR argues that given this fee arrangement, Goldtooth
and the Benallys did not “incur[]” fees. We disagree.
The EAJA does not define “incurred” in 28 U.S.C.
§ 2412(d)(1)(A). We have construed the term “incurred” in
analogous fee-shifting statutory provisions to permit an
award where the prevailing party was represented by counsel
either on a contingent fee basis or pro bono—that is, with no
fees due from the client. Although the fee arrangements in
those cases are not identical to the arrangement we consider
here, we conclude that the term “incurred” in
§ 2412(d)(1)(A) applies in this circumstance, as in those, to
a plaintiff’s relationship with attorneys representing him or
her in court even though the plaintiff has no obligation to pay
the attorney’s fees absent a fee award.
8 BENALLY V. ONHIR
For example, in Morrison v. Commissioner, 565 F.3d
658 (9th Cir. 2009), we interpreted an analogous fee-shifting
provision in the Tax Code, 26 U.S.C. § 7430(a). That
provision provides that a prevailing party in a civil tax
proceeding “may be awarded a judgment or a settlement for
(1) reasonable administrative costs incurred in connection
with such administrative proceeding within the Internal
Revenue Service, and (2) reasonable litigation costs
incurred in connection with such court proceeding.” 26
U.S.C. § 7430(a) (emphasis added). In Morrison, the
plaintiff successfully challenged a notice of tax deficiency
issued by the Internal Revenue Service (“IRS”) and then
filed a motion for attorney’s fees in the United States Tax
Court. 565 F.3d at 659. The plaintiff’s former employer
also filed a motion for attorney’s fees, after having paid all
the plaintiff’s fees under an arrangement in which the
plaintiff would reimburse if he successfully recovered fees
under § 7430(a). The Tax Court granted the employer’s
motion and denied the plaintiff’s motion on the basis that the
plaintiff did not “incur” fees because his former employer
paid them on his behalf. Id. at 660. We reversed and held
that, where a third party initially pays the fees and costs of
litigation, “a taxpayer can ‘incur’ attorneys’ fees under
§ 7430 even if he assumes only a contingent obligation to
repay them.” Id. at 663.
In doing so, we considered that other courts repeatedly
have awarded attorney’s fees to prevailing parties
represented by pro bono counsel pursuant to similar fee-
shifting provisions in other statutes. See id. at 664
(collecting cases). A major concern addressed in these cases
and in Morrison was the risk that individuals would not be
able to vindicate their rights if they did not have the financial
resources to do so, and that counsel would lack incentive to
BENALLY V. ONHIR 9
assist them without the assurance that fees may be recovered
after litigating meritorious claims. Id. at 664-66. We also
noted that, by interpreting “incurred” this way, we “avoid[]
creating an incentive for the IRS to deny meritorious
claims.” Id. at 666.
We reached a similar conclusion in Cuellar v. Joyce, 603
F.3d 1142 (9th Cir. 2010). There, the plaintiff, with the aid
of pro bono counsel, successfully petitioned for the return of
her child abducted by the child’s other parent pursuant to the
Hague Convention on the Civil Aspects of International
Child Abduction, 3 and subsequently moved for an award of
attorney’s fees and costs. Id. at 1143. The applicable fee-
shifting statute provided that “[a]ny court ordering the return
of a child” pursuant to a civil action brought under the Hague
Convention “shall order the respondent to pay necessary
expenses incurred by or on behalf of the petitioner,”
including court costs and legal fees, “unless the respondent
establishes that such order would be clearly inappropriate.”
42 U.S.C. § 11607(b)(3) (current version at 22 U.S.C.
§ 9007(b)(3)) (emphasis added). We granted the motion,
rejecting the respondent’s argument that the order would be
clearly inappropriate because the plaintiff had not “incurred”
fees as she was represented pro bono. Cuellar, 603 F.3d at
1143. We noted that “[f]ee awards serve in part to deter
frivolous litigation, and denying fees in this case would
encourage abducting parents to engage in improper delaying
tactics whenever the petitioning parent is represented by pro
bono counsel.” Id. (citing Morrison, 565 F.3d at 664). We
also considered, as in Morrison, whether denying fees to a
plaintiff represented by pro bono counsel would frustrate the
purpose of the relevant statute. We concluded that it would,
3
Oct. 25, 1980, T.I.A.S. No. 11,670, 1343 U.N.T.S. 49.
10 BENALLY V. ONHIR
observing that denying fees would “undermine the
Convention’s policy of effective and speedy return of
abducted children,” and that “[a]n award of fees in this case
will encourage other lawyers to advance legal services to
impecunious clients in the expectation that they will be
compensated if successful.” Id.
Moreover, whether plaintiffs are represented by private
counsel or non-profit legal services organizations has no
bearing on their entitlement to attorney’s fees under the
EAJA. Here, the Navajo Nation arranged for legal services
through the Navajo-Hopi Legal Services Program by
contracting with private counsel to represent Goldtooth and
the Benallys in challenging ONHIR’s denial of relocation
benefits. The attorney’s fee arrangement in Goldtooth’s and
the Benallys’ cases is analogous to circumstances where a
non-profit legal services organization provides legal
representation to persons who cannot afford the costs of such
representation, but nonetheless are entitled to an award of
fees as prevailing parties.
In Dennis v. Chang, 611 F.2d 1302 (9th Cir. 1980), one
such case, we affirmed the district court’s award of
attorney’s fees to prevailing plaintiffs represented by a non-
profit public interest organization in a civil rights action
against Hawaiʻi state officials under 42 U.S.C. § 1983.
Having prevailed, the plaintiffs’ attorneys moved for a fees
award pursuant to the Civil Rights Attorney’s Fees Awards
Act of 1976, 42 U.S.C. § 1988. Id. at 1304. Section 1988
authorizes a court to “allow the prevailing party, other than
the United States, a reasonable attorney’s fee as part of the
costs” associated with a civil action under § 1983. 42 U.S.C.
§ 1988(b). We held in Dennis that when determining
whether an award was warranted, “the nature or source of
plaintiffs’ counsel’s funding” is neither material to
BENALLY V. ONHIR 11
plaintiffs’ entitlement to an award of attorney’s fees nor an
obstruction to the purpose of § 1988. Dennis, 611 F.2d at
1306.
In affirming the district court’s fee award in Dennis, we
specifically noted that “[a]n award of attorneys’ fees . . . is
not to be denied because counsel provided its legal
representation without charge,” 611 F.2d at 1304 n.4, and
that “Congress has made it clear that legal service
organizations . . . are entitled to attorneys’ fees on the same
basis as private counsel.” Id. at 1305 n.7. Because the
“purpose in authorizing fee awards was to encourage
compliance with and enforcement of the civil rights laws,”
we concluded that “[t]he Fees Awards Act must be liberally
construed to achieve these ends.” Id. at 1306.
The considerations in Morrison, Cuellar, and Dennis
apply with equal force to the EAJA. As we recognized in
Morrison, the “reasoning employed by the courts under the
attorney’s fees provision of the Equal Access to Justice Act
applies equally to review under section 7430 [of the Tax
Code].” Morrison, 565 F.3d at 662 n.4 (quoting Huffman v.
Comm’r, 978 F.2d 1139, 1143 (9th Cir. 1992)). Further,
“[t]he clearly stated objective of the EAJA is to eliminate
financial disincentives for those who would defend against
unjustified governmental action and thereby to deter the
unreasonable exercise of Government authority.” Ardestani
v. I.N.S., 502 U.S. 129, 138 (1991) (citation omitted); see
also Comm’r v. Jean, 496 U.S. 154, 164-65 (1990) (“The
Government’s general interest in protecting the federal fisc
is subordinate to the specific statutory goals of encouraging
private parties to vindicate their rights . . .”).
Goldtooth and the Benallys were represented by private
counsel retained through the Navajo-Hopi Legal Services
12 BENALLY V. ONHIR
Program, which is operated by the Navajo Nation. The
principles we recognized in Dennis apply here. Preserving
the availability of an attorney’s fees award similarly
encourages the Navajo Nation to contract with private
counsel to represent plaintiffs with meritorious challenges to
ONHIR’s denial of relocation benefits. Thus, we conclude
that Goldtooth and the Benallys “incurred” fees under the
EAJA in a manner similar to that in which the plaintiffs in
Morrison, Cuellar, and Dennis incurred fees.
This position is consistent with that of several of our
sister circuits which have held that prevailing parties under
the EAJA are entitled to attorney’s fees when represented on
a contingent fee basis or pro bono. In Cornella v. Schweiker,
728 F.2d 978 (8th Cir. 1984), the Eighth Circuit reversed a
district court’s denial of attorney’s fees under the EAJA and
held that pro bono representation does not preclude a finding
that the plaintiff incurred fees for purposes of the Act. See
id. at 986-87. The court relied largely on the legislative
history of the EAJA, determining that Congress specifically
contemplated the availability of fee awards to pro bono
counsel, and did not intend to base awards under the EAJA
on the “actual fee arrangements between the attorney and
client.” Id. at 986. The court also determined that
interpreting the EAJA to bar awards based on pro bono
representation would “effectively reduc[e] access to the
judiciary for indigent individuals,” which “surely does not
further the goals of the EAJA.” Id. at 986-87.
The Sixth Circuit reached the same conclusion in Turner
v. Commissioner, 680 F.3d 721 (6th Cir. 2012), but with
respect to contingency representation under the EAJA.
Reversing the district court’s denial of several plaintiffs’
attorney’s fees motions after they prevailed in their actions
challenging the government’s denial of Social Security
BENALLY V. ONHIR 13
benefits, the court held that “the existence of an unsatisfied
contingency or pro bono representation agreement does not
preclude a fee award, even where the statute limits fees to
those ‘incurred’ by the plaintiff in that action.” Id. at 724
(citing Ed A. Wilson, Inc. v. Gen. Servs. Admin., 126 F.3d
1406, 1409 (Fed. Cir. 1997)). Instead, “an express or
implied legal obligation to pay over such an award to their
legal representatives” satisfied the requirement that a
plaintiff “incurred” fees pursuant to the EAJA. Id. at 725.
In so holding, the court noted that precluding fee awards for
contingency representation would significantly curtail
challenges to denials of Social Security benefits by
individuals with meritorious claims and would undermine
one of the EAJA’s objectives of eliminating financial
deterrents to civil suits. See id. at 724. These concerns are
particularly pertinent for Social Security cases, Turner
noted, as contingency fee arrangements predominate in such
cases. Id. The contingent nature of the attorney’s fee
arrangement in Goldtooth’s and the Benallys’ cases is not
significantly different from the arrangements in Cornella
and Turner. The reasoning and result in those cases
therefore further support our determination that Plaintiffs
incurred attorney’s fees for purposes of the EAJA.
ONHIR’s reliance on Love v. Reilly, 924. F.2d 1492 (9th
Cir. 1991), to argue that only the Navajo Nation “incurred”
fees under the EAJA is misguided. Love concerned whether
a plaintiff organization could obtain attorney’s fees after the
organization prevailed with other plaintiffs in an underlying
suit against a federal agency. In concluding that the
organization was entitled to attorney’s fees, we rejected the
government’s argument that the organization was required
to prove that each of its members, including the co-plaintiffs,
individually met the eligibility requirements for an
14 BENALLY V. ONHIR
attorney’s fees award under the EAJA and that, accordingly,
each of them was a “real party in interest in the fee
litigation.” Love, 924 F.2d at 1494. Here, where the Navajo
Nation was not a party to the litigation, and Goldtooth and
the Benallys were themselves the prevailing parties in their
respective cases and seek attorney’s fees in that capacity,
Love is inapposite. 4 The problem of the so-called “free
rider” plaintiff considered and rejected in Love – where “a
plaintiff who is ineligible for fees under the EAJA . . . ends
up paying no fees because the other, eligible plaintiff pays
them all through the court-awarded fees” – does not exist
here either. Id. at 1495.
Furthermore, there is no reason to invoke the real party
in interest concept in this case. ONHIR relies on the
proposition in Love that “[t]he members of the [organization]
would be the real party in interest in the fee litigation only if
they were liable for the [organization’s] attorney’s fees.”
Love, 924 F.2d at 1494. But Love and the District of
Columbia Circuit case upon which it relied concerned
individual plaintiffs litigating their claims alongside an
association as a co-plaintiff. Love, 924 F.2d at 1494-95
(citing Unification Church v. I.N.S., 762 F.2d 1077 (D.C.
Cir. 1985)). With no similar arrangement here among
Goldtooth and the Benallys, and no participation by the
Navajo Nation as a party in their cases, we need not inquire
whether there are real parties in interest other than the
plaintiffs themselves. See Am. Ass’n of Retired Pers. v.
E.E.O.C., 873 F.2d 402, 406-07 (D.C. Cir. 1989) (holding
that the central concern in assessing real parties in interest
for EAJA cases is whether a “fee arrangement among the
4
We therefore do not address ONHIR’s arguments that the Navajo
Nation is ineligible for an attorney’s fees award under the EAJA.
BENALLY V. ONHIR 15
plaintiffs” exists (emphasis deleted)); see also id. at 406
(noting that a plaintiff’s retainer of pro bono or legal aid
counsel defeats suspicion that she is using another plaintiff
to obtain otherwise unavailable EAJA attorney’s fees (citing
Unification Church, 762 F.2d at 1083)).
B.
In a slight variation on the “incurred” argument already
discussed, ONHIR argues that Goldtooth and the Benallys
are ineligible for fees because the statute provides for
awarding fees to the prevailing party, yet the plaintiffs have
“no stake in whether fees are awarded.” The government
suggests that only the Navajo Nation has such a stake
because, under the attorney’s fee arrangement here, the
Navajo Nation is ultimately responsible for paying the costs
of counsel, and Goldtooth and the Benallys in turn agreed to
assign payment of any attorney’s fees awards to the Navajo
Nation.
As discussed above with respect to Plaintiffs’ contractual
relationship with counsel, whether the Navajo Nation is
required to pay the fees to counsel is irrelevant to our
determination that Goldtooth and the Benallys are
themselves entitled to a fee award. “It is well-settled that an
award of attorneys fees under [the] EAJA is not necessarily
contingent upon an obligation to pay counsel . . . The
presence of an attorney-client relationship suffices to entitle
prevailing litigants to receive fee awards.” Nadarajah v.
Holder, 569 F.3d 906, 916 (9th Cir. 2009) (citation
modified) (quoting Ed A. Wilson, Inc., 126 F.3d at 1409).
“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.” Astrue v. Ratliff, 560 U.S.
16 BENALLY V. ONHIR
586, 593 (2010). Instead, “the statute’s plain text does the
opposite – it ‘awards’ the fees to the litigant.” Id.
Thus, the contractual relationship between Plaintiffs,
their counsel, and the Navajo Nation, and whether that
contract requires the plaintiffs to remit the fees award to the
Navajo Nation, does not preclude Plaintiffs’ entitlement to
an order requiring the government to pay them, as prevailing
parties, an attorney’s fee award under the EAJA. Cf. Shealey
v. Wilkie, 946 F.3d 1294, 1297-98 (Fed. Cir. 2020) (holding
that attorneys who sought to recover fees and costs under the
EAJA from their client lacked standing because they lacked
any “substantive rights” to the award). Whether the fee
award is assigned to an organization responsible for paying
the fees does not matter.
For the above reasons, we hold that as Goldtooth and the
Benallys incurred fees within the meaning of the EAJA, they
are eligible for an attorney’s fees award on that basis.
III.
We turn next to whether the government’s positions in
the Goldtooth and Benally litigation and ONHIR’s
underlying denial of their applications for benefits were
substantially justified. See 28 U.S.C. § 2412(d)(1). “It is the
government’s burden to show that its position was
substantially justified.” Meier v. Colvin, 727 F.3d 867, 870
(9th Cir. 2013) (citing Gutierrez v. Barnhart, 274 F.3d 1255,
1258 (9th Cir. 2001)). For the purposes of the EAJA, the
government’s “position” includes “both the government’s
litigation position and the ‘action or failure to act by the
agency upon which the civil action is based.’” Ibrahim v.
U.S. Dep’t of Homeland Sec., 912 F.3d 1147, 1168 (9th Cir.
2019) (citation omitted). “Substantial justification means
‘justified in substance or in the main – that is, justified to a
BENALLY V. ONHIR 17
degree that could satisfy a reasonable person.’” Meier, 727
F.3d at 870 (quoting Pierce v. Underwood, 487 U.S. 552,
565 (1988)). Thus, the government’s position “must have a
reasonable basis both in law and fact.” Id. (citation
modified).
While ONHIR correctly states that the EAJA
contemplates “that the government [may] lose on the merits
and nevertheless be found to have taken a substantially
justified position,” that proposition has no force here. Our
conclusion on the merits was that ONHIR’s decisions were
not based on substantial evidence. We have repeatedly held
that “it will be only a ‘decidedly unusual case in which there
is substantial justification under the EAJA even though the
agency’s decision was reversed as lacking in reasonable,
substantial and probative evidence in the record.’”
Thangaraja v. Gonzales, 428 F.3d 870, 874 (9th Cir. 2005)
(quoting Al-Harbi v. I.N.S., 284 F.3d 1080, 1085 (9th Cir.
2002)).
ONHIR’s denial of relocation benefits to Goldtooth and
to the Benallys was not substantially justified because, in
each case, its decision was not supported by substantial
evidence. In Goldtooth’s appeal, we reversed the grant of
summary judgment to the government because we
determined that the IHO mischaracterized the record in
discrediting certain testimony by Goldtooth. See Goldtooth,
No. 23-4202, 2024 WL 4866953, at *1-2. In the Benallys’
appeal, we similarly reversed the district court’s grant of
summary judgment to the government after concluding that
the IHO’s adverse credibility findings against Elsie, Fern,
Norman, and their mother, Mabel Benally, were based on
speculation and conjecture instead of record evidence.
Benally, No. 23-3978, 2024 WL 4971965, at *1.
Accordingly, we remanded both cases to ONHIR for further
18 BENALLY V. ONHIR
proceedings because they failed our review for substantial
evidence. See 5 U.S.C. § 706(2).
Because ONHIR’s decisions in the underlying merits
cases were not supported by substantial evidence and
therefore were not substantially justified, we need not
determine whether the government’s litigation position was
substantially justified. See Meier, 727 F.3d at 872-73
(holding that all of the government’s positions must be
substantially justified to avoid an award under the EAJA).
The government argues that its litigation position was
justified because the evidence relied on by the IHO to deny
relocation benefits to Goldtooth and the Benallys “could
satisfy a reasonable person.” See Pierce, 487 U.S. at 565.
However, “[g]iven the significant similarity between this
standard and the substantial justification standard . . . this
court and other circuits have held that a ‘holding that the
agency’s decision was unsupported by substantial evidence
is a strong indication that the ‘position of the United States’
was not substantially justified.’” Meier, 727 F.3d at 872
(citation modified) (quoting Thangaraja, 428 F.3d at 874).
The government has not demonstrated, or even argued, that
we are confronted with “decidedly unusual case[s]” that
would warrant a finding that the government’s position was
substantially justified. Thus, the government’s attempt to
relitigate the merits of Goldtooth’s and the Benallys’
underlying cases is unconvincing.
For these reasons, we conclude that the government’s
positions in these cases were not substantially justified to
defeat Goldtooth’s and the Benallys’ entitlement to an
attorney’s fee award under the EAJA.
BENALLY V. ONHIR 19
IV.
Because Tony Goldtooth and Elsie, Fern, Lucille, and
Norman Benally are the prevailing parties in their respective
cases, ONHIR’s position was not substantially justified, and
circumstances do not make an award of fees unjust, we
conclude that they are entitled to an award of attorney’s fees
under the EAJA at the hourly rate of fees allowed by that
statute.
Goldtooth’s motion for attorney’s fees and costs under
the EAJA is granted in the requested amount of $49,716.54.
The Benallys’ motion for attorney’s fees and costs under the
EAJA is granted in the requested amount of $44,907.12.
In Case No. 23-4202, Plaintiff Tony Goldtooth’s
motion for an award of attorney’s fees and costs in the
amount of $49,716.54 is GRANTED.
In Case No. 23-3978, Plaintiffs Elsie, Fern, Lucille,
and Norman Benally’s motion for an award of attorney’s
fees and costs in the amount of $44,907.12 is GRANTED.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ELSIE BENALLY; FERN No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ELSIE BENALLY; FERN No.
02BENALLY; NORMAN BENALLY, 3:22-cv-08100- DLR Plaintiffs - Appellants, v.
03ORDER UNITED STATES OFFICE OF NAVAJO AND HOPI INDIAN RELOCATION, an Administrative Agency of the United States, Defendant - Appellee.
04UNITED STATES OFFICE OF NAVAJO AND HOPI INDIAN RELOCATION, Defendant - Appellee.
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ELSIE BENALLY; FERN No.
FlawCheck shows no negative treatment for Goldtooth v. United States Office of Navajo and Hopi Indian Relocation in the current circuit citation data.
This case was decided on October 1, 2025.
Use the citation No. 10686062 and verify it against the official reporter before filing.