AmeriGuard filed a request for attorney fees under EAJA arguing that the Secretary was not substantially justified in alleging that AmeriGuard breached fiduciary duties owed to the Maryland Association of Correctional and Security Employees Health and Welfare Plan (Health Plan) and the Maryland Association of Correctional and Security Employees Retirement Plan (Retirement Plan), (collectively, Plans). We alleged that AmeriGuard breached fiduciary duties owed to the Plans under ERISA when it failed to insure that the Plans were administered by an equal number of employee and employer representatives as mandated by the Taft-Hartley Act.
The district court concluded that AmeriGuard was a prevailing party as it was fully successful in obtaining a summary judgment decision in its favor. The court also concluded that the Secretary was not substantially justified in bringing this case because the facts and the law did not support that AmeriGuard was a fiduciary to the Plans and held, over our objection, that AmeriGuard had no authority or control over the Plans. The court further determined that AmeriGuard was eligible to receive an award under EAJA because it had a net worth of less than $7 million and fewer than 500 employees at the time the suit was filed.