Heston v. Secretary of Department of Health & Human Services

41 Fed. Cl. 41, 1998 U.S. Claims LEXIS 116, 1998 WL 305202
CourtUnited States Court of Federal Claims
DecidedMay 26, 1998
DocketNo. 90-3318V
StatusPublished
Cited by4 cases

This text of 41 Fed. Cl. 41 (Heston v. Secretary of Department of Health & Human Services) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heston v. Secretary of Department of Health & Human Services, 41 Fed. Cl. 41, 1998 U.S. Claims LEXIS 116, 1998 WL 305202 (uscfc 1998).

Opinion

OPINION

ANDEWELT, Judge.

I.

This action, brought pursuant to the National Childhood Vaccine Injury Act of 1986, as amended, 42 U.S.C. §§ 300aa-1 to -34 (the Vaccine Act), presents an issue of first impression. This court must determine whether special masters have the authority to award compensable attorneys’ fees and related costs incurred in the prosecution of a Vaccine Act petition directly to counsel rather than to the petitioner-. Herein, the special master assigned to consider the petition pursuant to Section 12(d) of the Vaccine Act carefully reviewed this issue and ultimately determined that he possessed the discretion to make such a direct award to counsel. Respondent filed a timely motion pursuant to Section 12(e)(1) of the Vaccine Act seeking review of the special master’s October 3, 1997, decision. Respondent contends that the pertinent statutory provisions of the Vaccine Act obligate the special master to award any attorneys’ fees and related costs directly to the petitioner. The court compliments the special master on a careful, comprehensive, and well written opinion. For the reasons set forth below, however-, the court simply disagrees with the special master’s interpretation of the statute and concludes that the [42]*42Vaccine Act requires special masters to award attorneys’ fees and related costs directly to the petitioner.

II.

Darcy Heston, mother and guardian of Jana Heston, hired an attorney, William Ronan, to file a petition under the Vaccine Act seeking compensation for injuries Jana allegedly suffered as the result of a diphtheria-pertussis-tetanus (DPT) vaccination administered on May 18, 1967. After Ronan drafted and filed the petition, Darcy Heston, for reasons not apparent from the record, ceased cooperating with Ronan. The special master ultimately dismissed the action for failure to prosecute and explained that “Mr. Ronan was in a position where he could obtain from the petitioner neither her authority to voluntarily dismiss the ease, nor her cooperation in attempting to prove the claim. He therefore had no other viable option but to stand by as I dismissed the case.” Heston v. Secretary, HHS, No. 90-3318V, 1997 WL 702561, at *2 (Fed.Cl. Oct. 3, 1997).

As described below, Section 15(e)(1) of the Vaccine Act authorizes the special master to award reasonable attorneys’ fees and other costs incurred in prosecuting a petition under the Vaccine Act even in instances where the special master denies all other forms of compensation, so long as the special master finds that the petitioner had a reasonable basis for the claim and brought the claim in good faith. After dismissal of the instant petition, based on Section 15(e)(1), Ronan sought to recover fees and certain other costs he had incurred in the prosecution of the petition. The special master concluded that Ronan had presented sufficient evidence to support an award of attorneys’ fees and costs totaling $7,206.17.

Respondent concedes that the special master could have, consistent with common practice, issued a cheek covering attorneys’ fees and related costs in the names of both petitioner and Ronan, thus giving Ronan some level of control over the funds. The special master, however, concluded that such an approach unlikely would result in Ronan ever receiving the funds due him. The special master reasoned that given petitioner’s unwillingness to cooperate and communicate with Ronan, it was “extremely unlikely that if a cheek for attorneys’ fees and costs were made out jointly to the petitioner and a check for attorneys’ fees and costs were made out jointly to the petitioner and Mr. Ronan, the petitioner would in fact endorse it so that Mr. Ronan could collect his rightful compensation and reimbursement for costs expended.” Id. at *4. This conclusion led the special master to consider whether he had the authority to compensate Ronan directly. Based on a detailed analysis of the language of the Vaccine Act and of case law under other statutes providing for the recovery of attorneys’ fees, the special master concluded that although the issue was close, he had the required discretion to award directly to Ronan attorneys’ fees and other costs totaling $7,206.17.

III.

The special master’s interpretation of the statute involving the scope of his authority is an issue of law and pursuant to Section 12(e) of the Vaccine Act, this court reviews determinations of issues of law on a de novo basis. See Euken by Euken v. Secretary, HHS, 34 F.3d 1045, 1047 (Fed.Cir.1994). In Patton v. Secretary, HHS, 25 F.3d 1021, 1027 (Fed.Cir.1994) (citations omitted), the Court of Appeals for the Federal Circuit explained the scope of a special master’s authority under the Vaccine Act as follows: “[T]he Office of Special Masters owes its existence to and derives its powers from the Vaccine Act. As a ‘creature of statute ... [a]ny and all authority pursuant to which [a special master] may act ultimately must be grounded in an express grant from Congress.’ ” Hence, in determining whether the special master acted within his discretion when he awarded the fees and costs directly to Ronan, this court must resolve whether any provision in the Vaccine Act reasonably can be interpreted to grant special masters the disputed authority to award such fees and costs directly to counsel.

The relevant statutory provisions are contained in Sections 11 and 15 of the Vaccine Act. Section 11(a) provides that “[a] proceeding for compensation under the [Vaccine Act] for a vaccine-related injury or death shall be [43]*43initiated by service upon the Secretary and the filing of a petition ... with the United States Court of Federal Claims.” Section 11(c) goes on to define the required contents of such a petition. Section 15 specifies the amount of compensation available to a petitioner on a petition brought under Section 11. Section 15(a) states the general rule for compensation under the Vaccine Act and Section 15(b), which applies here, governs compensation for injuries resulting from vaccines administered before the effective date of the Vaccine Act. Both Sections 15(a) and (b) begin with the phrase “[cjompensation awarded under the [Vaccine Act] to a petitioner under Section 300aa-11 ...” (emphasis added). Section 15(a) then lists, without specifically mentioning attorneys’ fees and related costs, those expenses and items for which compensation is available. Section 15(b) lists some of the items for which compensation is available under Section 15(a) but specifically includes as part of the available compensation reasonable attorneys’ fees and costs. Section 15(b) provides:

Compensation ... may also include an amount, not to exceed a combined total of $30,000, for—
(1) lost earnings ...,
(2) pain and suffering ..., and
(3) reasonable attorneys’ fees and costs (as provided in subsection (e) of this section).

Section 15(e) in turn provides for the payment of attorneys’ fees and costs as follows:

Attorneys’ fees

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41 Fed. Cl. 41, 1998 U.S. Claims LEXIS 116, 1998 WL 305202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heston-v-secretary-of-department-of-health-human-services-uscfc-1998.