Section 4-21.5-3-27.5 - Attorney's fees(a) In a proceeding under this chapter concerning an agency action, the administrative law judge shall order the agency to pay the reasonable attorney's fees incurred in the proceeding by the prevailing party challenging the agency action if: (1) the party challenging the agency action proves, by a preponderance of the evidence, that: (A) the agency's action was frivolous or groundless; or(B) the agency pursued the action in bad faith;(2) the agency action was unsupported by a statute or a valid rule, as provided in IC 4-22-2-44; or(3) the agency has failed to demonstrate that the agency acted within its legal authority.(b) Except as provided in subsection (c) and subject to IC 34-52-2-1.5, in a judicial review proceeding, the court shall order the agency to pay the other party's reasonable attorney's fees if: (1) the other party prevailed before an administrative law judge;(2) the agency initiated the proceeding for judicial review; and(3) the other party prevailed in the judicial review proceeding.(c) In a judicial review proceeding, the court may not award attorney's fees against an agency under this section if: (1) the agency's only involvement in the case resulted from the agency's role as an arbiter of the legal rights, duties, immunities, privileges, or other legal interests of two (2) or more parties; or(2) the position of the agency as a party became unjustified as a result of an intervening change in applicable law.Amended by P.L. 128-2024,SEC. 9, eff. 7/1/2024.Amended by P.L. 249-2023,SEC. 6, eff. 7/1/2023.Added by P.L. 199-2021,SEC. 1, eff. 7/1/2021.