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.

The DOJ suggested that, if fees are awarded, they should not exceed $399,443, with costs capped at $6,168. It also contested the fees related to the church's Freedom of Information Act (FOIA) claims, asserting that much of the requested information was going to be released regardless. Therefore, the church should only receive $16,370 for FOIA-related fees.

Dispute Over Multiplier and Attorney Performance

The government also challenged the 1.5 multiplier lodestar, arguing that the attorneys performed competent rather than exceptional work. The settlement, they said, resulted from information that would have surfaced in regular administrative proceedings.

DOJ Ayahuasca Church $2.2M Fees : Church's Rebuttal

Gilbert Paul Carrasco, representing the church, criticized the government's stance as "untenable" and warned that it could discourage civil rights litigants from settling before trial. He argued that the plaintiffs achieved their goal of practicing their religion freely, which justifies the attorneys' fees under federal fee-shifting statutes.

"This positive outcome would not have been possible but for an excellent legal team working tirelessly to represent honorable and devout plaintiffs," Carrasco said.

Representatives for the government could not be immediately reached for comment.

Legal Representation

CEC is represented by Gilbert Paul Carrasco, Ismail L. Ali, Jack Silver, Martha J. Hartney, and Sean T. McAllister. The government is represented by Giselle Barcia of the DOJ's Civil Division.