Darald G. Bly v. Robert A. McDonald

28 Vet. App. 256, 2016 U.S. Vet. App. LEXIS 1535, 2016 WL 5864636
CourtUnited States Court of Appeals for Veterans Claims
DecidedOctober 7, 2016
DocketNO. 15-0502(E)
StatusPublished
Cited by9 cases

This text of 28 Vet. App. 256 (Darald G. Bly v. Robert A. McDonald) 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
Darald G. Bly v. Robert A. McDonald, 28 Vet. App. 256, 2016 U.S. Vet. App. LEXIS 1535, 2016 WL 5864636 (Cal. 2016).

Opinions

[258]*258KASOLD, Judge:

Pursuant to the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412(d), veteran Darald G. Bly applies through counsel for an award of attorney fees and expenses in the amount of $4,909.58. The Secretary moves for dismissal because the application was filed 1 day beyond the statutory 30-day filing deadline for an EAJA application. See 28 U.S.C. § 2412(d)(1)(B) (requiring that EAJA applications be filed within 30 days of a court’s final judgment). Mr. Bly argues that his filing was timely, and, alternatively, that the time to file should be equitably tolled. A panel was convened to determine whether the doctrine of equitable tolling applies to the EAJA filing period, and, if so, whether Mr. Bly has demonstrated entitlement to such tolling. See Frankel v. Derwinski, 1 Vet.App. 23, 25-26 (1990); U.S. Vet. App. Internal Operating Procedure (IOP) 1(b)(2), (4). We hold that the statutory 30-day period in which to file an EAJA application is subject to equitable tolling, but Mr. Bly has not established entitlement to equitable tolling. Accordingly, Mr. Bly’s EAJA application will be dismissed as untimely.

I. BACKGROUND & PARTIES’ ARGUMENTS

On January 5, 2016, the Court ordered that the parties’ joint motion for partial remand (JMPR) addressing the merits of Mr. Bly’s underlying appeal be granted. The January 5 order states that “[ujnder Rule 41(b) of the Court’s Rules of Practice and Procedure, this order is the mandate of the Court.” On February 5, 31 days after the order of mandate issued, Mr. Bly submitted his EAJA application. Because the application was filed beyond the statutorily required filing period, Mr. Bly was ordered to show cause why his application should not be dismissed as untimely filed. Mr. Bly argues that the January 5, 2016, Court order granting the parties’ JMPR was not a “final judgment” because, under Rule 36 of the Court’s Rules of Practice and Procedure (“Rules” or U.S. Vet. App. R.), he had 60 days after judgment to appeal to the U.S. Court of Appeals for the Federal Circuit (Federal Circuit). He therefore contends that his EAJA application filed on February 5, 31 days after the January 5 order, was timely.

The parties were subsequently ordered to file supplemental memoranda addressing (1) whether the filing period for an EAJA application is subject to equitable tolling, and, if so, what standard should govern such tolling, (2) whether equitable tolling was warranted in this case, and (3) whether there were alternative means other than tolling of ensuring that Mr. Bly’s potential VA-benefits award would not be reduced if the EAJA application was dismissed as untimely. Mr. Bly argues that equitable tolling applies to late-filed EAJA applications and urges the Court to adopt a standard of equitable tolling that inquires only into whether a veteran would be financially harmed without tolling and whether the Government would be prejudiced by tolling. Under this standard, Mr. Bly argues that—should the EAJA application be deemed untimely filed—he is entitled to equitable tolling because (1) any benefits award on remand would be reduced by contingent attorney fees that otherwise would have been offset dollar-for-dollar by an EAJA award, leading to a smaller overall award for Mr. Bly, and (2) the Government would not be prejudiced by the timing of the EAJA application.

With regard to alternative means of ensuring that his potential overall award would not be reduced by an offset of attorney’s fees, Mr. Bly asserts in his supplemental memorandum that he has no alternative means. At oral argument, he asserted that the Court may not review [259]*259his attorney fee agreement because the merits portion of the case had been remanded to the Board and was no longer pending before the Court.

The Secretary agrees that equitable tolling is applicable to the filing period for an EAJA application, but he argues that the test for equitably tolling the time to file an EAJA application is the same as the general test for equitably tolling a statutory time period, to wit: whether an extraordinary circumstance prevented the timely filing despite due diligence.1 See, e.g., Lozano v. Montoya Alvarez, — U.S. -, 134 S.Ct. 1224, 1231-32, 188 L.Ed.2d 200 (2014) (describing the general requirements for the application of the doctrine of equitable tolling). The Secretary further argues that equitable tolling is not applicable in this case because the late filing here was due to counsel’s unjustified misunderstanding of the Rules, which constitutes nothing more than garden variety negligence. See Secretary’s Supplemental Memorandum in Response to the Court’s May 31, 2016 Order (Secretary’s Memo) at 10 (citing Irwin v. Dep’t of Veterans Affairs, 498 U.S. 89, 96, 111 S.Ct. 463, 112 L.Ed.2d 435 (1990) (noting “the principles of equitable tolling ... do not extend to what is at best a garden variety claim of excusable neglect”)). To this end, the Secretary not only cites the Court’s Rules and caselaw, he also presents evidence that he had informed Mr. Bly’s attorney by email that Mr. Bly would be required to file the EAJA application within 30 days after the January 5, 2016, Court order granting the JMPR.

With regard to any harm to Mr. Bly, the Secretary argues that there are at least three alternative methods for ensuring that, absent the grant of an EAJA award, a veteran’s overall award is not reduced by the offset of attorney’s fees: (1) The Court may reduce any fee due under the attorney-client contract if it finds these fees excessive or unreasonable, see Secretary’s Memo at 13 (citing 38 U.S.C. § 7263); (2) the Secretary may likewise reduce any fee due under the attorney-client contract for the same reason, see Secretary’s Memo at 13-14 (citing 38 U.S.C. § 5904(c)(3)(A)); or (3) a veteran may file a malpractice suit against a counsel who untimely filed an EAJA application, see Secretary’s Memo at 14.

II. ANALYSIS

A. Mr. Bly’s EAJA application was untimely filed.

Mr. Bly argues that his EAJA application filed on February 5, 31 days after the January 5 order, was timely because on February 5 final judgment had not entered and he still had time to appeal. His argument is incorrect as a matter of law.

A party seeking an EAJA award must file an application for attorney fees and costs under EAJA within 30 days of a court’s final judgment. 28 U.S.C. § 2412(d)(1)(B). The U.S. Court of Appeals for Veterans Claims is explicitly included in the statute’s definition of “court.” 28 U.S.C. § 2412(d)(2)(F). The statute defines the term “final judgment” as “a judgment that is final and not appealable” and “includes an order of settlement.” 28 U.S.C. § 2412(d)(2)(G).

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Related

Bly v. Shulkin
883 F.3d 1374 (Federal Circuit, 2018)
Catherine Cornell v. Robert A. McDonald
28 Vet. App. 297 (Veterans Claims, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
28 Vet. App. 256, 2016 U.S. Vet. App. LEXIS 1535, 2016 WL 5864636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darald-g-bly-v-robert-a-mcdonald-cavc-2016.