Hackwell v. United States

491 F.3d 1229, 35 A.L.R. Fed. 2d 739, 2007 U.S. App. LEXIS 15958, 2007 WL 1935621
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 5, 2007
Docket05-1509
StatusPublished
Cited by26 cases

This text of 491 F.3d 1229 (Hackwell v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hackwell v. United States, 491 F.3d 1229, 35 A.L.R. Fed. 2d 739, 2007 U.S. App. LEXIS 15958, 2007 WL 1935621 (10th Cir. 2007).

Opinions

HOLLOWAY, Circuit Judge.

Plaintiffs-Appellants Kim Hackwell and Killian, Guthro & Jensen, P.C. (KGJ) filed a complaint in the United States District Court for the District of Colorado challenging a regulation, 28 C.F.R. § 79.74(b), that interprets the attorney-fee limitations set forth by the Radiation Exposure Compensation Act, 42 U.S.C. § 2210 note Sec. 9. The district court granted the Defendants’ motion to dismiss for failure to state a claim. Dist. Ct. Order at 24. See Fed. R.Civ.P. 12(b)(6). We exercise jurisdiction pursuant to 28 U.S.C. § 1291 and reverse and remand for proceedings consistent with this opinion.

I. BACKGROUND

On October 15, 1990, Congress enacted the Radiation Exposure Compensation Act (RECA) to remedy the injustice suffered by those exposed to radiation created by the government’s atomic-weapons testing during the Cold War. This Act limited the fee a RECA claimant’s attorney could collect: “Notwithstanding any contract, the representative of an individual may not receive, for services rendered in connection with the claim of an individual under this Act, more than 10 per centum of a payment made under this Act on such claim.” Pub.L. No. 101-426, § 9 (1990).

On July 10, 2000, Congress amended this Act in several ways — one of which was to reduce attorney fees in certain circumstances:

(a) General Rule. Notwithstanding any contract, the representative of an individual may not receive, for services rendered in connection with the claim of an individual under this Act, more than that percentage specified in subsection (b) of a payment made under this Act on such claim.
(b) Applicable percentage limitations. The percentage referred to in subsection
(a) is—
(1) 2 percent for the filing of an initial claim; and
(2) 10 percent with respect to—
(A) any claim with respect to which a representative has made a contract for services before the date of the enactment of the Radiation Exposure Compensation Act Amendments of 2000 ...; or
(B) a resubmission of a denied claim.
(c) Penalty. Any such representative who violates this section shall be fined not more than $5,000.

42 U.S.C. § 2210 note Sec. 9 (emphasis added).

On March 23, 2004, in accordance with his authority to “issue such regulations as are necessary to carry out this Act,” id. § 2210 note Sec. 6(j), the Attorney General promulgated a regulation interpreting the phrase “services rendered” to include “costs incurred”:

(b) Fees.
(1) Notwithstanding any contract, the attorney of a claimant or beneficiary, [1232]*1232along with any assistants or experts retained by the attorney on behalf of the claimant or beneficiary, may not receive from a claimant or beneficiary any fee for services rendered, including costs incurred, in connection with an unsuccessful claim.
(2) Notwithstanding any contract and except as provided in paragraph (b)(3) of this section, the attorney of a claimant or beneficiary, along with any assistants or experts retained by the attorney on behalf of the claimant or beneficiary, may receive from a claimant or beneficiary no more than 2% of the total award for all services rendered, including costs incurred, in connection with a successful claim.
(3)(I) If an attorney entered into a contract with the claimant or beneficiary for services before July 10, 2000, with respect to a particular claim, then that attorney may receive up to 10% of the total award for services rendered, including costs incurred, in connection with a successful claim.
(ii) If an attorney resubmits a previously denied claim, then that attorney may receive up to 10% of the total award to the claimant or beneficiary for services rendered, including costs incurred, in connection with that subsequently successful claim. Resubmission of a previously denied claim includes only those claims that were previously denied and refiled under the Act.
(4) Any violation of paragraph (b) of this section shall result in a fine of not more than $5,000.

28 C.F.R. § 79.74(b) (emphasis added).

Plaintiff Kim Hackwell is the daughter of a deceased uranium worker who quali-fíes to receive a payment under the RECA. Ms. Hackwell attempted to hire KGJ, a law firm that represents RECA claimants, to assist her in filing her RECA claim. But KGJ decided not to represent Ms. Hackwell, allegedly because 28 C.F.R. § 79.74(b)’s fee limitation applies to the sum of the attorneys’ expenses and fee, and KGJ could not afford to represent Ms. Hackwell under this scheme.

Subsequently, KGJ and Ms. Hackwell filed a complaint challenging the regulation on several grounds. See infra n. 1. The district court, applying Chevron U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984), held that the Attorney General’s interpretation of the RECA’s attorney-fee limitation is reasonable and consistent with Congress’s intent. Specifically, the district court concluded that combining costs incurred with payments for services rendered when calculating the limit on an attorney’s fee is consistent with the RECA’s purpose to benefit radiation-exposure victims. Indeed, the court reasoned, one section in the RECA forbids the Attorney General from collecting costs incurred in carrying out the Act. The court also noted that several fee-shifting statutes, such as § 1988 of the Civil Rights Act, use the phrase “attorney fee” to include expenses as well as fees.

The district court therefore deferred to the Defendants’ regulation, found that the regulation is consistent with the RECA, and granted the Defendants’ Fed.R.Civ.P. 12(b)(6) motion to dismiss. Ms. Hackwell and KGJ filed this timely appeal.

II. DISCUSSION

The Plaintiffs assert that the district court erred in several respects,1 yet our [1233]*1233resolution of the first alleged error moots the remaining issues presented. The Plaintiffs argue that the district court should have set aside 28 C.F.R. § 79

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Bluebook (online)
491 F.3d 1229, 35 A.L.R. Fed. 2d 739, 2007 U.S. App. LEXIS 15958, 2007 WL 1935621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hackwell-v-united-states-ca10-2007.