In re the Fee Agreement of Stanley

9 Vet. App. 203, 1996 WL 352834
CourtUnited States Court of Appeals for Veterans Claims
DecidedJune 27, 1996
DocketNo. 94-587
StatusPublished
Cited by14 cases

This text of 9 Vet. App. 203 (In re the Fee Agreement of Stanley) 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
In re the Fee Agreement of Stanley, 9 Vet. App. 203, 1996 WL 352834 (Cal. 1996).

Opinion

STEINBERG, Judge:

The appellants, veteran Danny Bowles and his counsel, attorney James W. Stanley, Jr., appeal a July 18, 1994, Board of Veterans’ Appeals (BVA or Board) decision denying the counsel’s motion for a formal order finding that the fees charged (but not yet paid) under the October 1993 fee agreement between the two were for services rendered after a final decision by the Board. Record (R.) at 9-10. For the reasons that follow, the Court will affirm the Board decision.

I. Background

The veteran had active service in the U.S. Army from August 1970 to December 1971. R. at 15. In December 1989, a Department of Veterans Affairs (VA) regional office (RO) granted him service connection for post-traumatic stress disorder (PTSD) and assigned a 30% disability rating, effective from July 24, 1989. R. at 41-42. In February 1991, the VARO continued the 30% rating. R. at 44. In February 1992, VA received notice from the veteran of his appointment of James Stanley, Esq., as his authorized representative. R. at 67, 71. That same month, the veteran filed a Notice of Disagreement (NOD). See R. at 46,191.

After a hearing at the RO, in May 1992 the hearing officer denied a PTSD rating greater than 30%. See R. at 128-29, 191. In June and July 1992 decisions, the RO continued the December 1989 rating. R. at 133, 175. In an August 1992 Substantive Appeal to the Board, the appellant veteran contended that he was entitled to a 70% rating for PTSD and a 100% rating for total disability based on individual unemployability (TDIU). R. at 184-85.

In December 1992, the Board found that “additional assistance” (R. at 192) and “clarifying evidence” (R. at 194) were required and remanded the case to the RO for the following actions: (1) to obtain and associate with the claims folder any VA vocational rehabilitation folder; (2) to have the veteran complete and return an up-to-date employment information statement; (3) to conduct a VA social and industrial survey which assesses “the impact of the veteran’s psychiatric disorder on his ability to secure and follow substantially gainful employment”; (4) to obtain all relevant records from the Social Security Administration; (5) to schedule an examination by a VA specialist in psychology; and (6) to consider the veteran’s TDIU claim and whether an extra-schedular rating is warranted. R. at 192-93.

The Board stated:

Following completion of these actions, the RO should review the evidence and determine whether the veteran’s claims may now be granted. If not, he and his representative should be provided with a supplemental statement of the case [ (SSOC) ].... Thereafter, the case should be returned to the Board for further appellate review.

R. at 193-94. The decision also notified the veteran as follows: “Under 38 U.S.C.G § 7252 ... only a decision of the [Board] is appealable to the United States Court of Veterans Appeals. This remand is in the [206]*206nature of a preliminary order and does not constitute a decision of the Board on the merits of your appeal.” R. at 195.

In the August 1993 RO decision on remand from the Board, the RO granted entitlement to a 100% schedular rating for PTSD, effective from January 14, 1991, and stated: “Entitlement to [TDIU] is not a factor as a total 100% evaluation was granted.” R. at 255-56. An RO letter dated September 2, 1993, notified the veteran of the August 1993 RO decision, provided the monthly rates of his benefit payment, enclosed a copy of the decision and a statement of his appeal rights, and stated: “This action constitutes a full grant of the benefits sought by you, and your appeal has been withdrawn.” Supplemental R. at 1.

In December 1993, the veteran sent the RO a letter disagreeing with the effective date assigned by the RO in its August 1993 decision. R. at 265. The letter also stated: “It is further error by the Board of Veterans’ Appeals not to recognize [the veteran’s 1989 informal claim] in its final decision of September 2,1993.” Ibid.

As to the issue of the attorney’s fee, in November 1993 the veteran’s counsel submitted to VA a copy of their October 1993 retainer agreement. R. at 258-60. The contract provided, inter alia: “Client retains the firm of James W. Stanley, Jr., to provide legal services at any time after the first denial decision by the [Board; and c]lient agrees to pay a fee of 25% retroactive benefits in connection with the Client’s claim with [VA]” in the event of a favorable decision on the claim. R. at 259. That same month, in a letter from Mary Gallagher, Counsel to the BVA Chairman, the BVA notified the counsel that the Board’s December 1992 remand was not a final decision by the Board and that fees could not be authorized “for any services ... perforated] before the date that the Board enters a final decision”. R. at 262. In response, the counsel stated in a December 23, 1993, letter that he agreed that the December 1992 remand by the Board was a “preliminary order and not a final decision”; however, he also stated that “the [RO], on behalf of the BVA, issued a final decision on September 2, 1993”, that that decision is a final Board decision because the BVA retained jurisdiction over the appeal while it was remanded to the RO, and that that decision was “partially favorable to the veteran”. R. at 267. A January 1994 letter from the counsel clarifies that the retainer agreement seeks only “to charge [the veteran] for services [rendered] after the [Board’s] final decision — the September 2, 1993[,] award.” R. at 273.

In February 1994, the veteran’s counsel submitted a letter to the BVA wherein he stated that he was “asking the Board ... to enter a formal order finding [that a final Board decision was made]”. R. at 278. He also stated that if the Board finds that there was no final BVA decision and that he is unable to charge a fee, then he contended that “38 U.S.C. [§ ] 5904(c)(1) and 38 C.F.R. [§ ] 20.609(c)(1) are unconstitutional in that they deny the right of counsel and to due process of law”. R. at 278.

In the July 1994 BVA decision here on appeal, the Board denied entitlement to a fee under the October 1993 retainer agreement. The Board found that it had not rendered a final decision on any claim in which the attorney had represented the veteran. R. at 9-10. As to the constitutional arguments raised in the counsel’s letter, the Board concluded that them resolution “exceeded] the jurisdiction of this Board”. R. at 7.

II. Analysis

A. Lack of a Final Board Decision

In the brief submitted on appeal in this Court, the appellants concede that the Board’s December 1992 remand of the case to the RO for further development was a “preliminary order” (Brief (Br.) at 10), but contend that the August 1993 RO decision “was, in fact, a ‘final decision’ by the [Board] for purposes of 38 U.S.C. § 5904” because the RO “merely issued an order as a surrogate of the BVA upon remand” (Br. at 11) when the Board had “continuing jurisdiction [over] the case” (Br. at 10) under Hamilton v. Brown, 4 Vet.App. 528 (1993) (en banc), aff'd 39 F.3d 1574 (Fed.Cir.1994).

The appellants argue that once the August 1993 decision had been issued, the veteran was “free to retain the services of his counsel

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