GRANTED: June 28, 1995 GSBCA 13269-C(12829) CARDINAL MAINTENANCE SERVICE, INC., Applicant, v. GENERAL SERVICES ADMINISTRATION, Respondent. Joseph J. Camardo, Jr., and Catherine G. Gadway, Auburn, NY, counsel for Applicant. Richard R. Butterworth, Jr., Office of General Counsel, General Services Administration, Washington, DC, counsel for Respondent. Before Board Judges DEVINE, BORWICK, and GOODMAN. GOODMAN, Board Judge. Cardinal Maintenance Service (CMS) has filed an application for reimbursement of fees and expenses pursuant to the Equal Access to Justice Act (EAJA), 5 U.S.C. 504 (1994), in the amount of $1,627. We grant CMS's application. Background In September 1993, CMS entered into a settlement agreement with respondent, the General Services Administration (GSA), with regard to a previous appeal which was docketed as GSBCA 11978. That appeal was thereafter dismissed. Cardinal Maintenance Service, Inc. v. General Services Administration, GSBCA 11978 (Oct. 4, 1993). After dismissal of GSBCA 11978, CMS filed a notice of appeal on May 6, 1994, which was docketed as GSBCA 12829. The subsequent appeal arose from a claim for payment of appellant's final invoice under the contract which was the subject of the previous appeal. Respondent denied appellant's claim for payment of the final invoice because it was respondent's position that payment of the invoice was included in the settlement of GSBCA 11978, or alternatively, that the settlement agreement in the previous claim contained an accord and satisfaction which was a release of all pending and future claims arising from the contract. The parties elected to submit this appeal for a decision on the record pursuant to Rule 11.[foot #] 1 We granted the appeal. Cardinal Maintenance Service, Inc. v. General Services Administration, GSBCA 12829 (Mar. 16, 1995). On May 9, 1995, CMS filed an application for reimbursement of fees and expenses pursuant to the EAJA. CMS seeks reimbursement of $1,627 -- $1,515 in attorney's fees and $112 in expenses. Application for Award of Fees and Other Expenses (Application) 8-9, Exhibit A.[foot #] 2 CMS's Application alleges that CMS is a corporation with fewer than 500 employees, with a net worth of less than $7 million, Id., 6-7, and reads, in pertinent part: The position taken by the General Services Administration in this adversary adjudication was not substantially justified because GSA arbitrarily refused to pay CMS for a routine final invoice that was not in dispute and not released in the parties [sic] settlement of an earlier dispute. Id., 4. On June 9, 1995, respondent's counsel filed a response to the Application. The response reads, in pertinent part: I have received and reviewed Appellant's Application for fees and costs under the Equal Access to Justice Act. After a complete review of the claimed costs, respondent does not propound any objection to appellant's application. Respondent's Response at 1. ----------- FOOTNOTE BEGINS --------- [foot #] 1 48 CFR 6101.11 (1994). [foot #] 2 CMS's counsel alleges that CMS "actually incurred $3,596.65 of EAJA legal fees and costs, however, because of the relationship between [CMS and its counsel] and the size of the appeal, much of the fees were not charged by counsel to CMS." Application 8. Exhibit A of the Application details the actual time expended per task, the actual billing rates for the individuals performing the task, the amount claimed pursuant to the EAJA, and the reduction in the actual amount incurred, demonstrating that only $1,627 was actually billed to the client. ----------- FOOTNOTE ENDS ----------- Discussion As CMS is a corporation with fewer than 500 employees, with a net worth of less than $7 million, it is eligible to recover under the EAJA. 5 U.S.C. 504(b)(1)(B) (1994). The EAJA permits a "prevailing party" to recover "fees and other expenses incurred by that party" unless the "position of the agency was substantially justified or . . . special circumstances make an award unjust." 5 U.S.C. 504(a)(1). Because appellant received the relief requested, appellant qualifies as a "prevailing party." Respondent has stated that it does not "propound any objection to appellant's application," thereby conceding CMS's allegation that GSA's position as to the claim was not substantially justified. We have independently reviewed the fees and expenses claimed by the applicant to determine if they are recoverable. The EAJA limits recovery of legal fees to $75 per hour. One of the applicant's attorneys had a billing rate of $100 per hour, and the other had a billing rate of $75 per hour. The applicant, in initially calculating costs pursuant to the EAJA, has reduced the claimed fees for the attorney billing at $100 per hour to $75, yielding a total incurred fee of $3,484.65.[foot #] 3 CMS's attorneys unilaterally decided, because of their relationship with CMS and the size of the claim, to bill CMS only $1,515 of the $3,484.65 in fees actually incurred, and the applicant seeks to recover the amount it was billed. This amount is reasonable and recoverable under the EAJA. CMS's counsel also incurred expenses totalling $112, including postage, telecopying charges, and reproduction of documents. The EAJA allows recovery of such expenses if they were "incurred in connection with the proceeding" and were reasonable and necessary for the preparation of the party's case. 5 U.S.C. 504(a)(1), (b)(1)(A) (1994). We find these amounts meet the statutory criteria, and are therefore recoverable under the EAJA. ----------- FOOTNOTE BEGINS --------- [foot #] 3 The applicant also included fees for an individual, apparently a law clerk or paralegal, who billed a total of three hours. Based upon the information in support of the Application, this individual billing rate was apparently $75 per hour, but the amount sought was characterized at an "EAJA rate" of $16.80 per hour, for a total of $50.40. This amount was included in the total actual fees incurred of $3,484.65 before CMS's counsel reduced the fees billed to the client to $1,515. We allow recovery of fees for law clerks and paralegals at the rate billed to the client. Spectrum Leasing Corp. v. General ___________________________________ Services Administration, GSBCA 10902-C(7347), et al., 93-1 BCA ________________________ 25,317 (1992). ----------- FOOTNOTE ENDS ----------- Decision CMS's application for the award of fees and other expenses is GRANTED. The applicant is awarded $1,627 pursuant to 5 U.S.C. 504, to be paid without interest. ________________________ ALLAN H. GOODMAN Board Judge We concur: _____________________ ________________________ DONALD W. DEVINE ANTHONY S. BORWICK Board Judge Board Judge