John B. Wells v. Denis McDonough

CourtUnited States Court of Appeals for Veterans Claims
DecidedJune 23, 2022
Docket20-5221
StatusPublished

This text of John B. Wells v. Denis McDonough (John B. Wells v. Denis McDonough) 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
John B. Wells v. Denis McDonough, (Cal. 2022).

Opinion

UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

NO. 20-5221

JOHN B. WELLS, PETITIONER,

V.

DENIS MCDONOUGH, SECRETARY OF VETERANS AFFAIRS, RESPONDENT.

Before BARTLEY, Chief Judge, and GREENBERG and JAQUITH, Judges.

OR D ER

On July 27, 2020, John B. Wells, Esq., filed a petition for extraordinary relief in the nature of a writ of mandamus. The petition challenges VA's process for issuing payment to individuals who successfully represent VA claimants pursuant to fee agreements executed under 38 U.S.C. § 5904(d)(2) and 38 C.F.R. § 14.636. Those provisions authorize VA to pay fees directly to a representative from any past-due VA benefits awarded on the basis of a claim. 38 U.S.C. § 5904(d)(2)(A)(i); 38 C.F.R. § 14.636(h); see Gumpenberger v. Wilkie, 973 F.3d 1379, 1381 (Fed. Cir. 2020). Under the current process, VA does not immediately disburse a section 5904(d)(2) payment to the representative at the time that past due benefits are paid to the VA claimant; instead, to allow claimants to contest a potential fee award, VA waits at least 60 days before issuing a section 5904(d)(2) payment. Mr. Wells challenges the legality of this 60-day waiting period.

Specifically, Mr. Wells asserts that a writ is necessary to compel VA to expeditiously pay outstanding attorney fees and expenses subject to fee agreements executed under section 5904(d)(2) and § 14.636. In the alternative, he asks this Court to order the Secretary to promulgate a method by which claimants may waive the 60-day waiting period associated with VA's section 5904(d)(2) payment. Because Mr. Wells has not demonstrated that he has an indisputable right to the writ, the Court will deny the petition.

I. BACKGROUND AND PARTIES' ARGUMENTS Mr. Wells is an attorney who represents veterans before VA. Petition (Pet.) at 2. Within the scope of that representation, he and his clients enter into fee agreements pursuant to section 5904(d)(2) and § 14.636. Id. As relevant here and consistent with applicable statutes and regulations, these fee agreements provide that the total fee payable to the representative does not exceed 20% of the total amount of past-due benefits, that the fee is contingent on a favorable resolution of the claim, and that the award of past-due benefits results in a payment to the claimant or appellant from which the fee may be deducted. 38 U.S.C. §§ 5904(d)(1)-(3).

In his initial petition, Mr. Wells asserted that the Secretary's imposition of a 60-day delay into this payment process for attorney fees is arbitrary, capricious, and contrary to law because neither 38 U.S.C. § 5904, which governs attorney fees, nor 38 U.S.C. § 7105A, which governs simultaneously contested claims, specifically permits a 60-day waiting period. Pet. at 3-5, 7. Mr. Wells contended that section 7105A does not apply because, when a representative and a claimant have entered into a properly executed section 5904(d)(2) fee agreement, approved by the Secretary and that defines the terms of representation, "the presumption must be that the fees are not contested." Id. at 7-8. He argued that in the event of a fee dispute there are adequate remedies available to the VA claimant. Id. at 5. He indicated that he had 10 outstanding attorney fee agreements awaiting VA payment of past-due benefits and asserted that, to the extent that the 60- day period in those cases had expired, the Secretary was not complying with his own policy of processing fees for payment. Id. at 4. He argued that without the extraordinary remedy of mandamus there was no other relief available because there is no appeal procedure that can force the Secretary to pay section 5904(d)(2) fees that have been approved. Id. 5.

Alternatively, Mr. Wells asked the Court to order the Secretary to promulgate a method by which veterans can waive the 60-day period. Id. at 3, 10. He acknowledged that the 60-day period is "purportedly to allow the veteran to appeal the attorney's fees," id. at 10, but cautioned that delays in VA paying section 5904(d)(2) fees deter sole practitioners and small firms from engaging in the practice of veterans benefits law, id. at 8.

The Secretary responded to the petition on October 23, 2020, reporting that section 5904(d)(2) fees had already been paid in 9 of the 10 cases identified by Mr. Wells and that VA instructed its finance department to release the section 5904(d)(2) fees in the remaining case. Secretary's Oct. 27, 2020, Response (Resp). at 1-2. On this basis, the Secretary argued that the petition would become moot during the pendency of the Court's review. Id. at 2-3, 16. The Secretary argued that, if the petition is not moot, practitioners do not lack adequate alternative means to obtain relief because they may contact VA's attorney fee coordinators (AFCs) to inquire about any purported delay. Id. at 4.

Turning to the 60-day period at the heart of the petition, the Secretary argued that legal and practical considerations require VA to issue a decision as to whether the representative identified in a fee agreement is eligible for section 5904(d)(2) fees and that the mere existence of a fee agreement does not satisfy the legal requirements for VA's direct payment of such fees. Id. at 7-8 (citing 38 U.S.C. § 5904, 38 C.F.R. § 14.636). Moreover, the Secretary argued that, following the issuance of a fee eligibility decision, the statutes and regulations addressing simultaneously contested claims, including the 60-day period for filing a Notice of Disagreement (NOD), apply and VA must provide notice of appellate rights to the claimant. Secretary's Oct. 27, 2020, Resp. at 10 (citing 38 U.S.C. §§ 5104(a), 7105A; Mason v. Shinseki, 743 F.3d 1370. 1376 (Fed. Cir. 2014), aff'g 26 Vet.App. 1 (2012)). The Secretary argued that the representative eligibility determination constitutes an important procedural safeguard for claimants, as the decision puts claimants on notice that VA intends to reduce their award of past-due benefits by paying a portion of the benefits to a representative. Id. The Secretary contends that 38 U.S.C. § 511(a) permits the Secretary to decide "all questions of law and fact necessary to a decision by the Secretary under a law that affects the provision of benefits by the Secretary to veterans," and that VA's current procedure is consistent with the law and regulations governing direct-pay fee matters. Id. at 11-12. The Secretary also noted that, if Mr. Wells does not wish to be subject to the 60-day waiting period, he is free in the future to use non-direct payment fee arrangements under 38 C.F.R.

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John B. Wells v. Denis McDonough, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-b-wells-v-denis-mcdonough-cavc-2022.