Carpenter v. Principi

15 Vet. App. 64, 2001 U.S. Vet. App. LEXIS 815, 2001 WL 705964
CourtUnited States Court of Appeals for Veterans Claims
DecidedJune 21, 2001
Docket99-0794
StatusPublished
Cited by27 cases

This text of 15 Vet. App. 64 (Carpenter v. Principi) is published on Counsel Stack Legal Research, covering United States Court of Appeals for Veterans Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carpenter v. Principi, 15 Vet. App. 64, 2001 U.S. Vet. App. LEXIS 815, 2001 WL 705964 (Cal. 2001).

Opinions

FARLEY, Judge, filed the opinion of the Court. STEINBERG, Judge, filed an opinion concurring in part and dissenting in part. KRAMER, Chief Judge, filed a dissenting opinion.

FARLEY, Judge:

This is an appeal from the April 6, 1999, decision of the Board of Veterans’ Appeals (BVA or Board) which found that the total attorney fees charged by the appellant, attorney Kenneth M. Carpenter, for his representation of veteran Victor S. Weath-erspoon, were “excessive and unreasonable.” The BVA reduced the appellant’s fee to 20% of the past-due benefits awarded to his client. The Board also concluded that the appellant was legally bound to refund to Mr. Weatherspoon the fees awarded to him pursuant to the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412(d). For the reasons that follow, the Court will affirm the decision of the Board in part and reverse in part.

I. BACKGROUND

The veteran served on active duty in the United States Army from July 1979 to September 1980. Record (R.) at 13. VA denied his claim for service connection for a nervous disorder in May 1981. R. at 35. In February 1993, Mr. Weatherspoon sought to reopen his service connection claim. R. at 79. In February 1994, he filed a VA Form 22a with the regional office (RO) appointing the appellant, Kenneth M. Carpenter, as his representative. R. at 46. The RO awarded the veteran service connection for bipolar affective disorder with chronic undifferentiated schizo[67]*67phrenia in May 1994, effective from February 12,1993. R. at 79.

In February 1995, the appellant filed, on behalf of the veteran, a claim for an earlier effective date for his service connection award on the basis of clear and unmistakable error (CUE) in the March 1981 RO decision. R. at 49-51. In April 1995, the RO determined that there was no CUE in the May 1981 RO decision and the Board affirmed. R. at 53-56, 76-86.

On May 1, 1997, the appellant filed a Notice of Appeal with this Court on behalf of the veteran. On the same date he filed with the Court a copy of a fee agreement entered into between him and the veteran. The agreement provided in pertinent part:

2. SCOPE AND DUTIES. Client [the veteran] hires Attorney [the appellant] to provide legal services in connection with appeal to U.S. Court of Veterans Appeals [now the U.S. Court of Appeals for Veterans Claims (Court)]. Attorney shall provide the following services: All services necessary to prosecute appeal to the [Court]. As a result of a decision by the [Court], the veteran’s case may be remanded and the Board of Veterans’ Appeals previous decision vacated. In the event of a court-ordered remand this agreement shall include representation of the veteran by the Attorney at both the Board of Veterans’ Appeals as well as any Regional Office of the Department of Veterans Affairs....
3. CONTINGENT FEE (DEPARTMENT OF VETERANS AFFAIRS CASES). Client agrees to pay a fee equal to thirty percent (30%) of the total amount of any past-due benefits awarded to Client, to include veteran, dependent or survivor benefits; on the basis of the Client’s claim with the Department of Veterans Affairs.... This representation is undertaken upon the following conditions:
c. The services contemplated under this contract before the [Court], Federal Circuit Court of Appeals, Board of Veterans’ Appeals, or Department of Veterans affairs Regional Office relate specifically to the claim or claims previously decided by the Board of Veterans’ Appeals.
4.EQUAL ACCESS TO JUSTICE ACT (EAJA) FEES. It is understood that in actions before the [Court], an application for attorney fees, costs and expenses may be filed on behalf of Client under EAJA in order to reimburse Client for attorney fees, costs and expenses which were required to be paid to protect Client from unreasonable governmental action. The recovery of reasonable attorney fees, costs and expenses for work performed on behalf of Client at the Court may be ordered. In the event of such Court-ordered award, such attorney fees, costs and expenses shall be payable directly to Attorney. It is understood and agreed that any attorney fees awarded under EAJA shall be the sole and exclusive property and entitlement of Attorney, for the services rendered to the Client for representation before the Court.... Attorney agrees that in the event the Court grants an award of benefits, if there is ultimate successful recovery of past-due benefits for Client, an offset will be made against the entitlement paid under the Attorney/Client Contingent Fee Contract of Attorney’s percentage of past-due benefits, in the amount of the sum of the attorney fees awarded by the Court under the provisions of EAJA. Client agrees that in the event the Court [68]*68remands veteran’s case, no offset will be made against the entitlement paid under the Attorney/Client Contingent Fee Contract of Attorney’s percentage of past-due benefits in the amount of the sum of the attorney fees awarded by the Court under the provisions of EAJA, if there is ultimate successful recovery of past-due benefits for Client.

R. at 89-90.

By letter dated May 1, 1997, the appellant also sent a copy of this fee agreement to the Board. The appellant’s letter stated that the fee agreement was being submitted to the Board “in the event of a remand from the [Court].” R. at 88. On July 3, 1997, the Deputy Chief Counsel for Legal Affairs of the BVA, by direction of the Chairman of the BVA, sent a letter to the appellant acknowledging receipt of the fee agreement. R. at 96. The letter also stated:

As we have previously discussed with you, paragraph 4 of your agreement, relating to fees under the [EAJA], appears to provide that fees awarded under EAJA will not be offset against your client’s fees if the [Court] remands Mr. Weatherspoon’s case and past-due benefits are awarded. This provision appears to be in violation of § 506(c) of Pub.L. No. 102-572 (Oct. 29, 1992), which provides that, when an attorney receives fees for the same work under both 28 U.S.C. § 2412(d) and 38 U.S.C. § 5904, the attorney shall refund the smaller amount to the client. The law does not appear to provide an exception where a case is remanded from the Court.
If you receive an EAJA fee and your client is awarded past-due benefits, we will take appropriate steps to review your fee agreement for reasonableness.

Id.

In February 1998, the Court granted the parties’ joint motion for remand of the veteran’s claim for an earlier effective date. R. at 110. On May 8, 1998, the Court awarded the veteran $2,473.17 in attorney fees and expenses pursuant to EAJA. See R. at 137. In August 1998, the Board found that there was CUE in the May 6, 1981, RO decision and awarded the veteran an effective date of January 20, 1981, for his service-connected psychosis. R. at 116-26. In September 1998, the RO implemented the Board’s decision and awarded the appellant $206,017.00 in past-due benefits. R. at 128-29,141-42.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Darald G. Bly v. Robert A. McDonald
28 Vet. App. 256 (Veterans Claims, 2016)
Johnson v. McDonald
28 Vet. App. 136 (Veterans Claims, 2016)
Cathleen E. Golden v. Sloan D. Gibson
27 Vet. App. 1 (Veterans Claims, 2014)
Clara Sue Padgett v. Eric K. Shinseki
23 Vet. App. 306 (Veterans Claims, 2009)
James C. Groves v. Eric K. Shinseki
23 Vet. App. 90 (Veterans Claims, 2009)
Jackson v. Shinseki
23 Vet. App. 27 (Veterans Claims, 2009)
Kenneth B. Mason v. R. James Nicholson
20 Vet. App. 279 (Veterans Claims, 2006)
James F. Fritz v. R. James Nicholson
19 Vet. App. 377 (Veterans Claims, 2005)
Kopulos v. Barnhart
318 F. Supp. 2d 657 (N.D. Illinois, 2004)
Stanley v. Principi
16 Vet. App. 356 (Veterans Claims, 2002)
Stephens v. Principi
16 Vet. App. 191 (Veterans Claims, 2002)
Carpenter v. Principi
16 Vet. App. 88 (Veterans Claims, 2002)
Sanchez v. Principi
16 Vet. App. 16 (Veterans Claims, 2002)
Snyder v. Principi
15 Vet. App. 285 (Veterans Claims, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
15 Vet. App. 64, 2001 U.S. Vet. App. LEXIS 815, 2001 WL 705964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carpenter-v-principi-cavc-2001.