A more thorough explanation:

Definition: Substantially justified refers to conduct or a position that has a reasonable basis in both law and fact.

For example, if someone sues the government and wins, they may be entitled to have their attorney's fees paid by the government. However, if the government's position in the lawsuit was substantially justified, the prevailing party may not be able to recover their attorney's fees.

Another example could be a company that terminates an employee for violating company policy. If the company's decision to terminate the employee was based on a reasonable interpretation of the policy and the facts of the situation, it could be considered substantially justified.

These examples illustrate that in order for conduct or a position to be considered substantially justified, it must have a reasonable basis in both law and fact. This means that it is not enough for someone to simply believe that their actions or position are justified, they must be able to demonstrate that they are reasonable based on the available evidence and legal standards.