Are watershed districts subject to the Minnesota Equal Access to Justice Act? In the Matter of the Application of the Lac Qui Parle-Yellow Bank Watershed District to Excavate Four Floodways in the Lac Qui Parle River, Lac Qui Parle County, 1995 WL 6419 (Minn.App.) The court also considered a request by Clean Up Our River Environment (CURE) for costs and attorney fees under the Minnesota Equal Access to Justice Act (MEAJA). MEAJA allows prevailing parties to claim fees and expenses in a contested case proceeding if the action is "brought by or against the state, [and if the party] shows that the position of the state was not substantially justified." Id. at *2, citing Minn.Stat. § 3.762(a) (1992). CURE had acted as in intervenor against the watershed district in the contested hearing before the ALJ, and it claimed that the watershed district met the definition of "state" under MEAJA. The court rejected this argument and held that watershed districts are not liable for costs and attorney fees under MEAJA. The court found that "[a]lthough the general purpose for establishing a watershed district is 'to conserve the natural resources of the state' (Minn.Stat. § 103D.2001, subd. 1), it is neither the state, an agency of the state, nor a 'political subdivision' of the state." See Minn.Stat. § 103D.011, subd. 20.
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