title-14-part-14-sec14-11

14 CFR Ch. I (1–1–24 Edition)

§ 14.10

(5) Such other factors as may bear on

the value of the services provided.

(d) The reasonable cost of any study,

analysis, engineering report, test,
project, or similar matter prepared on
behalf of a party may be awarded, to
the extent that the charge for the serv-
ice does not exceed the prevailing rate
for similar services, and the study or
other matter was necessary for prepa-
ration of the applicant’s case.

(e) Fees may be awarded only for

work performed after the issuance of a
complaint, or in the Default Adjudica-
tive Process for a protest or contract
dispute under part 17 of this chapter
and the AMS.

[Amdt. 13–18, 53 FR 34655, Sept. 7, 1988, as
amended by Amdt. 14–1, 55 FR 15131, Apr. 20,
1990; Amdt. 14–03, 64 FR 32935, June 18, 1999]

Subpart B—Information Required

From Applicants

§ 14.10

Contents of application.

(a) An application for an award of

fees and expenses under the Act shall
identify the applicant and the pro-
ceeding for which an award is sought.
The application shall show that the ap-
plicant has prevailed and identify the
position of the agency in the pro-
ceeding that the applicant alleges was
not substantially justified. Unless the
applicant is an individual, the applica-
tion shall also state the number of em-
ployees of the applicant and describe
briefly the type and purpose of its or-
ganization or business.

(b) The application shall also include

a statement that the applicant’s net
worth does not exceed $2 million (if an
individual) or $7 million (for all other
applicants, including their affiliates)
at the time the adversary adjudication
was initiated. However, an applicant
may omit this statement if:

(1) It attaches a copy of a ruling by

the Internal Revenue Service that it
qualifies as an organization described
in section 501(c)(3) of the Internal Rev-
enue Code (26 U.S.C. 501(c)(3)), or in the
case of a tax-exempt organization not
required to obtain a ruling from the In-
ternal Revenue Service on its exempt
status, a statement that describes the
basis for the applicant’s belief that it
qualifies under such section; or

(2) It states that it is a cooperative

association as defined in section 15(a)
of the Agricultural Marketing Act (12
U.S.C. 1141j(a)).

amount of fees and expenses for which
an award is sought.

(d) The application may also include

any other matters that the applicant
wishes this agency to consider in deter-
mining whether and in what amount an
award should be made.

(e) The application shall be signed by

the applicant or an authorized officer
or attorney for the applicant. It shall
also contain or be accompanied by a
written verification under oath or
under penalty of perjury that the infor-
mation provided in the application is
true and correct.

(f) If the applicant is a partnership,

corporation, association, organization,
or sole owner of an unincorporated
business, the application shall state
that the applicant did not have more
than 500 employees at the time the ad-
versary adjudication was initiated, giv-
ing the number of its employees and
describing briefly the type and purpose
of its organization or business.

§ 14.11

Net worth exhibit.

(a) Each applicant except a qualified

tax-exempt organization or cooperative
association must provide with its ap-
plication a detailed exhibit showing
the net worth of the applicant and any
affiliates when the proceeding was ini-
tiated. If any individual, corporation,
or other entity directly or indirectly
controls or owns a majority of the vot-
ing shares or other interest of the ap-
plicant, or if the applicant directly or
indirectly owns or controls a majority
of the voting shares or other interest of
any corporation or other entity, the
exhibit must include a showing of the
net worth of all such affiliates or of the
applicant including the affiliates. The
exhibit may be in any form convenient
to the applicant that provides full dis-
closure of the applicant’s and its affili-
ates’ assets and liabilities and is suffi-
cient to determine whether the appli-
cant qualifies under the standards in
this part. The administrative law judge
may require an applicant to file addi-
tional information to determine the
eligibility for an award.

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§ 14.21

(b) The net worth exhibit shall de-

scribe any transfers of assets from, or
obligations incurred by, the applicant
or any affiliate, occurring in the one-
year period prior to the date on which
the proceeding was initiated, that re-
duced the net worth of the applicant
and its affiliates below the applicable
net worth ceiling. If there were no such
transactions, the applicant shall so
state.

will be included in the public record of
the proceeding. However, an applicant
that objects to public disclosure of the
net worth exhibit, or any part of it,
may submit that portion of the exhibit
directly to the ALJ or adjudicative of-
ficer in a sealed envelope labeled
‘‘Confidential Financial Information,’’
accompanied by a motion to withhold
the information.

(1) The motion shall describe the in-

formation sought to be withheld and
explain, in detail, why it should be ex-
empt under applicable law or regula-
tion, why public disclosure would ad-
versely affect the applicant, and why
disclosure is not required in the public
interest.

(2) The net worth exhibit shall be

served on the FAA counsel, but need
not be served on any other party to the
proceeding.

(3) If the ALJ or adjudicative officer

finds that the net worth exhibit, or any
part of it, should not be withheld from
disclosure, it shall be placed in the
public record of the proceeding. Other-
wise, any request to inspect or copy
the exhibit shall be disposed of in ac-
cordance with the FAA’s established
procedures.

[54 FR 46199, Nov. 1, 1989, as amended by
Amdt. 14–03, 64 FR 32935, June 18, 1999]

§ 14.12

Documentation of fees and ex-

penses.

The application shall be accompanied

by full documentation of the fees and
expenses, including the cost of any
study, analysis, engineering report,
test, project or similar matter, for
which an award is sought. A separate
itemized statement shall be submitted
for each professional firm or individual
whose services are covered by the ap-
plication, showing the hours spent in
connection with the proceedings by

each individual, a description of the
specific services performed, the rate at
which each fee has been computed, any
expenses for which reimbursement is
sought, the total amount claimed, and
the total amount paid or payable by
the applicant or by any other person or
entity for the services provided. The
administrative law judge may require
the applicant to provide vouchers, re-
ceipts, or other substantiation for any
expenses claimed.

Subpart C—Procedures for

Considering Applications

§ 14.20

When an application may be

filed.

(a) An application may be filed when-

ever the applicant has prevailed in the
proceeding, but in no case later than 30
days after the FAA Decisionmaker’s
final disposition of the proceeding, or
service of the order of the Adminis-
trator in a proceeding under the AMS.

(b) If review or reconsideration is

sought or taken of a decision to which
an applicant believes it has prevailed,
proceedings for the award of fees shall
be stayed pending final disposition of
the underlying controversy.

disposition means the later of:

(1) Under part 17 of this chapter and

the AMS, the date on which the order
of the Administrator is served;

(2) The date on which an unappealed

initial decision becomes administra-
tively final;

(3) Issuance of an order disposing of

any petitions for reconsideration of the
FAA Decisionmaker’s final order in the
proceeding;

(4) If no petition for reconsideration

is filed, the last date on which such a
petition could have been filed; or

(5) Issuance of a final order or any

other final resolution of a proceeding,
such as a settlement or voluntary dis-
missal, which is not subject to a peti-
tion for reconsideration.

[54 FR 46199, Nov. 1, 1989, as amended by
Amdt. 14–03, 64 FR 32936, June 18, 1999]

§ 14.21

Filing and service of docu-

ments.

Any application for an award or

other pleading or document related to
an application shall be filed and served