In Pierce, the Supreme Court held that the position of the United States is substantially justified if it is “justified in substance or in the main--that is, justified to a degree that could satisfy a reasonable person." Pierce v. Underwood, 487 U.S. 552, 565, 108 S. Ct. 2541, 2550, 101 L. Ed. 2d 490 (1988). The Pierce Court provided further guidance on this standard, noting, ". . . [A] position can be substantially justified even though it is not correct, and we believe that it can be substantially (i.e., for the most part) justified if a reasonable person could think it correct, that is, if it has a reasonable basis in law and fact." Id. at 566 n.2, 108 S. Ct. at 2550 n.2.
