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High Profile Court Cases October 13, 2022 5 mins read

U.S. Government Will Pay $125M to End PACER Users’ Overcharge Class-Action Lawsuit

High Profile Court Cases ı By Samuel Lopez

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The complaint also argued that under the Little Tucker Act, all PACER users should receive a refund for any excessive PACER fees charged to the public. The court eventually granted class certification to all entities and individuals who paid PACER fees from 2010 to 2016, a class that could include hundreds of thousands of users.

In their response, the government claimed they were permitted to charge fees to the extent needed for any project related to providing the public access to documents and information electronically.

However, in 2018 U.S. District Judge Ellen S. Huvelle, made a finding on the issue of liability. Judge Huvelle found that the arguments from both sides were unpersuasive, and ruled that the E-Government Act put limits on the implementation of PACER fees, but found that the limits of the Act did not surpass the level that was suggested by the plaintiffs in their complaint.

Although Judge Huvelle found that the law permitted the judiciary the authority to utilize PACER fees for costs related to the maintenance and the Case Management/Electronic Case Files and Electronic Bankruptcy Noticing systems. Conversely, the Judge found that the government overreached in its fee-setting structure and said that the fees in dispute (approximately $200 million) were applied to projects that did not enhance public access to court records.

The ruling was appealed. In its findings, the U.S. Court of Appeals for the Federal Circuit court concurred with District Court Judge Huvelle, stating in its ruling that the district court’s order "got it just right." The appellate court remanded the case back to the district court for further proceedings. On remand, U.S. District Judge Paul Friedman was assigned to the case.

In August 2020, the federal circuit court said in its ruling "We do not accept either party's reading” “Instead, we agree with the district court's interpretation that [the law] limits PACER fees to the amount needed to cover expenses incurred in services providing public access to federal court electronic docketing information."

According to court records, attorneys for both sides participated in mediation in 2021, but it was not until June 2021, that it was reported they were discussing a possible settlement agreement. In November 2021, the parties publicly announced that they had come to an agreement “in principle” but did not disclose any specific details.

This case has captured the attention and support of media outlets, and Congress, including retired Sen. Joseph Lieberman, who while serving in Congress, sponsored the E-Government Act, and in 2017 filed an amici brief in support of PACER users.

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