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The U.S. government is urging an Arizona federal judge to reject a Phoenix church's request for $2.2 million in fees and costs following a settlement permitting the use of ayahuasca in its religious practices. The government argues that the lawsuit was unnecessary and would have reached the same conclusion through normal administrative processes.

DOJ Ayahuasca Church $2.2M Fees : DOJ's Argument Against Fees

In a brief filed Tuesday, the U.S. Department of Justice (DOJ) contended that the Church of the Eagle and the Condor (CEC) should have pursued a petition for a religious exemption through the Drug Enforcement Administration (DEA) instead of litigating. According to the DOJ, the DEA would have granted the exemption without the need for court intervention.

The DOJ asserted that the settlement resulted from the DEA's realization, after reviewing discovery materials, that the CEC likely qualified for the exemption. Thus, the church is not the "prevailing party," as no court action was necessary to achieve the settlement. The agreement was reached before the completion of discovery and expert testimony depositions, the DOJ added.

Dispute Over Costs and Justification

The DOJ further argued that the government’s positions were substantially justified throughout the litigation. It prevailed on several issues during the motion to dismiss, making the CEC's claim for costs inappropriate.

The church initiated the lawsuit against the DOJ, DEA, the U.S. Department of Homeland Security, and U.S. Customs and Border Protection in June 2022. It alleged that these agencies violated its religious freedom by preventing the use of ayahuasca, a Schedule I drug, in its practices.

DOJ Ayahuasca Church $2.2M Fees : Settlement Details

In April, the CEC reached a settlement with the federal government, allowing the church to "import, receive, manufacture, distribute, transport, securely store, and dispose of ayahuasca solely for CEC's religious purposes." The agreement prohibits the use of ayahuasca for nonreligious purposes.

The church must maintain records of the ayahuasca quantities and permit DEA inspections and audits.

Fee Request and Government's Rebuttal

In June, the church requested $2.2 million in fees, claiming complete victory and deserving an appropriate bonus for its attorneys' efforts. However, the government argued that the attorneys' hours and rates were unreasonable. The DOJ noted that the attorneys included duplicative and ineligible work and based their rates on out-of-forum standards rather than Arizona's.