In re the Fee Agreement of Cox

10 Vet. App. 361, 1997 U.S. Vet. App. LEXIS 614, 1997 WL 442683
United States Court of Appeals for Veterans Claims·Decided August 7, 1997·No. No. 95-1068·Published·Cited by 73 cases

Opinion

STEINBERG, Judge:

This case is before the Court, in the main, on an October 27, 1995, petition by an attorney seeking extraordinary relief in the form of an order that the Board of Veterans’ Appeals (BVA or Board) issue a final decision on his claim to entitlement — under 38 U.S.C. § 5904(d) and pursuant to a valid fee agreement — to payment of 20% of past-due benefits that the Department of Veterans Affairs (VA) awarded to his client and that he asserts that the Secretary wrongfully failed to withhold. Alternatively, he seeks an order from the Court that the BVA pay him those fees. Both parties have filed multiple pleadings. The petitioner has also purported to file a Notice of Appeal (NOA) from an August 31,1995, action by a Deputy Vice Chairman of the Board denying the petitioner’s motion that the Board issue a final decision on his claim to have VA pay him those fees. For the reasons that follow, the Court will deny the petition and dismiss the appeal.

I. Procedural History and Facts

Pursuant to a December 10, 1991, attorney-fee agreement, a veteran retained the petitioner, attorney Hugh D. Cox, to represent him in a claim for VA benefits and promised to pay the petitioner 20% of any past-due benefits that VA awarded. Petition [hereinafter Pet.] at Exhibit (Ex.) A; Answer to Pet. for Extraordinary Relief [hereinafter Ans.] at Ex. 8; see also In re Fee Agreement of Cox, No. 95-1068, 1996 WL 207120, at *1 (Vet.App. Apr. 2, 1996) (responding to motion to seal the record and noting that “it appears unlikely that the veteran would need to be identified in any Court action pertaining to the instant matter regarding attorney fees”). The veteran’s claim had last been finally denied by the BVA in a December 19, 1990, [364]*364decision, pursuant to a July 1989 Notice of Disagreement (NOD). Petitioner’s Memorandum in Response to Court Order of January 9, 1997; Ans. at Ex. 4, 5. On December 31,1991, the petitioner notified a VA regional office (RO) that the veteran wished to reopen his claim. Ans. at Ex. 8. It was at this point that the petitioner entered the ease as the veteran’s representative. See In re Fee Agreement of Smith in Case No. 91-488, 4 Vet.App. 487, 500 (1993) [hereinafter In re Smith ], vacated and remanded in part sub nom. Matter of Wick, 40 F.3d 367 (Fed.Cir.1994) [hereinafter In re Wick ]. The petitioner included a copy of the fee agreement, signed by both parties, stating, inter alia:

I ... instruct the VA, VARO, DVA, BVA, COVA [this Court], or other court to set aside one fifth (20 percent) of any such benefits I (or my family) receive after my attorney has been successful in recovering such past due benefits for the purpose of paying attorney’s fees. I understand that my contract with my attorney is to pay him the amount of twenty percent of past due benefits which will be set aside by the VA, VARO, BVA, COVA or other courts for such payment.

Ibid.; Pet. at Ex. A. On October 20,1992, the VARO awarded the veteran a 100% rating on his reopened claim (Ans. at Ex. 9); on October 30, 1992, the RO so notified the veteran (Ans. at Ex. 10); and on October 30, 1992, VA made payment of all past-due benefits directly to the veteran (Ans. at Ex. 11).

In a November 3,1992, letter, the petitioner advised the RO that his client had informed him of communications relating to the claim and that the petitioner had received no copies of these communications; he asked the RO to assist in recovering his fee. Pet. at Ex. C; Ans. at Ex. 12. In a December 4, 1992, letter, the RO informed the petitioner of the total award to the veteran ($37,408.00) and the petitioner’s resultant 20% fee ($7,481.60); the RO explained:

We have reviewed this case and find that you are entitled to a fee of 1/5 of past due benefits____
Since this case was not referred to the [BVA] the award procedure did not include consideration for payment of attorney fees. Payment was made to the claimant and the VA will be unable to pay your fee from past due benefits as these benefits have already been disbursed. We regret the error but any adjustment of the fee must be arranged between you and [the veteran]. We will inform [him] of our error and the fee that is payable to you.

Pet. at Ex. B; Ans. at Ex. 13.

On January 11,1993, the petitioner filed in this Court a petition for extraordinary relief seeking a writ of mandamus to compel the Secretary to show cause why he should not immediately pay the fees due the petitioner. Pet. at Ex. D; Ans. at Ex. 15. A February 23, 1993, order of this Court consolidated that petition with two other like petitions, and the Court thereafter held that, because this petitioner “did not represent an appellant before this Court and the agreement was not reviewed by the BVA, we lack jurisdiction ...” over his claim under 38 U.S.C. §§ 5904(c)(2) and 7263(c). In re Smith, 4 Vet.App. at 490, 500. The Court also concluded: “In light of the provisions of 38 C.F.R. § 20.609(i), which permit a party to a fee agreement to petition the Board for review of the agreement, the Court finds that [the] petitioner has not demonstrated a compelling basis for the issuance of a writ of mandamus because of the availability of [that] potentially adequate alternative remedy.” In re Smith, 4 Vet.App. at 500.

The petitioner then filed with the BVA an April 1993 motion seeking payment of attorney fees. Pet. at Ex. F; Ans. at Ex. 17. In a May 7, 1993, letter, counsel to the BVA Chairman responded that the BVA would not act on the motion pending resolution of the appeal in In re Wick, which, by then, had been appealed to the U.S. Court of Appeals for the Federal Circuit; the letter further stated: “Your ‘motion for payment of attorney’s fees’ does not meet the requirements of a motion for review of a fee agreement under 38 C.F.R. § 20.609(f).” Pet. at Ex. G; Ans. at Ex. 18. The appeal in In re Wick was resolved in November 1994, with the Federal Circuit reversing this Court and holding that the Court had no original jurisdiction to order the Secretary to pay an attorney the equivalent amount to a contingency fee that [365]*365the Secretary had wrongfully failed to withhold from a past-due VA benefits award. In re Wick, 40 F.3d at 373. In March 1995, the petitioner renewed his motion to the Board for payment of attorney fees. Ans. at Ex. 19. A May 1995 letter from the BVA Deputy Vice Chairman denied that motion; the Deputy Vice Chairman stated:

I have found no authority that would allow the Board to issue an order compelling the RO to pay a fee to an attorney when the elient/elaimant had received all the past-due benefits awarded. Indeed, in a 1992 precedent opinion of the VA General Counsel (O.G.C.Prec.27-92), it was held that because of the prohibition in 38 U.S.C. § 5904

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In re the Fee Agreement of Cox, 10 Vet. App. 361, 1997 U.S. Vet. App. LEXIS 614, 1997 WL 442683 (Cal. 1997).

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