Jones v. Derwinski

1 Vet. App. 596, 1991 U.S. Vet. App. LEXIS 124, 1991 WL 250693
United States Court of Appeals for Veterans Claims·Decided November 27, 1991·No. No. 90-649·Published·Cited by 30 cases

Opinions

FARLEY, Associate Judge, filed the opinion of the Court. MANKIN and STEINBERG, Associate Judges, concurring, filed separate opinions.

FARLEY, Associate Judge:

Petitioners, Joseph L. Jones and his attorney, Keith D. Snyder, are once again before the Court seeking extraordinary relief and sanctions because of unauthorized and erroneous communication from a Regional Office of the Department of Veterans Affairs. On June 6, 1991, this Court denied their original petition for similar relief, taking care to explain that we were denying the petition in reliance upon statements made by the representative of the Secretary that corrective measures had already been taken and based upon our “trust that if additional steps need to be taken to prevent unauthorized and erroneous communications with represented clients the Secretary will take them”. Nagler/Jones v. Derwinski, 1 Vet.App. 297, 306 (1991). From this second petition, it now appears that both our reliance and our trust were misplaced and that petitioners are entitled to relief.

I. FACTUAL AND PROCEDURAL BACKGROUND

On March 27,1991, this Court consolidated for oral argument petitions for extraordinary relief and sanctions in two separate cases. In each, petitioners alleged that there had been unauthorized and erroneous communications from components of the Department of Veterans Affairs (VA) with claimants represented by attorneys concerning the substance of the representation being provided and the nature of any fee agreements. In one of the consolidated cases, Nagler v. Derwinski, 1 Vet.App. 297, petitioner specifically alleged that a Regional Office (RO) had sent a letter to a represented claimant which contained outdated and wrong information and which impaired the attorney-client relationship, inter alia, by implying that the fee agreement could result in the criminal conviction of the attorney. The Court found that there was indeed a factual predicate for these allegations.

The files of this Court contain unrebut-ted evidence that Regional Offices, on their own, not only have communicated directly with represented claimants in connection with fee agreements but have made statements which were outdated, wrong as a matter of law, and which, by their nature, could only have impacted adversely upon the relationship of the attorney-petitioners with their clients.... [T]he Secretary does not deny that erroneous information was communicated directly to claimants known to be represented but dismisses the communication — as did the BVA rather grudgingly, without any expression of regret, and without the demanded clarification — as inadvertent and not harmful. In our view, the Secretary’s cavalier approach evidences a profound misunderstanding of the seriousness of this matter.

Nagler/Jones, at 805. The Court continued:

It is difficult to conceive of a communication which a government agency could issue to an attorney’s client which would be more injurious to a professional relationship. It is even more difficult to conceive of a reason why the RO should communicate with an attorney or a client concerning the terms of a fee agreement. The Secretary has not cited, and we have not found, any statutory authority for the review of fee agreements by Regional Offices or for any communication from Regional Offices with attorneys or their clients in connection with the terms of fee agreements.

Id. at 306.

Although the Court refrained from issuing an extraordinary writ or imposing sane-[599]*599tions, it clearly indicated that its restraint was motivated by its reliance upon statements made during oral argument by the Secretary’s representative who “advised that the new Chairman of the Board of Veterans’ Appeals had attempted to remedy the problem by reminding all of the Regional Offices and, presumably his own staff, that obsolete forms, and obsolete legal advice must not be communicated”. Id. at 306. The Court also presumed that the Secretary would act to prevent the “repetition of this egregious unprofessional conduct” (id. at 306):

Although the Chairman of the BVA may not have statutory or regulatory power to dictate policy to the Regional Offices, just as we trust that the Board will refrain from the premature and unauthorized review of fee agreements, we also trust that if additional steps need to be taken to prevent unauthorized and erroneous communications with represented clients the Secretary will take them. Under these circumstances, following the example of Erspamer [v. Derwinski, U.S.Vet.App. No. 89-14 [1 Vet.App. 3] (Feb. 23, 1990), appeal dismissed per agreement of the parties, No. 90-7001 (Fed.Cir. June 28, 1990) ], we decline to issue the writs requested by petitioners.

Id.

Notwithstanding the June 6, 1991, decision of this Court in Nagler/Jones, a VA hearing officer in the Cleveland RO sent a letter dated August 13, 1991, to appellant Jones, which contained unsolicited legal advice with respect to, inter alia, the nature and scope of attorney Snyder’s representation of Jones and the permissible terms of any fee agreement between Mr. Jones and Mr. Snyder. The letter, which also emphasized the criminal sanctions which could be imposed for violation of fee statutes, was, as the Secretary agrees, filled with inaccurate statements and legal judgments which were wholly wrong as a matter of law. It was this letter which prompted the appellants to file, on August 21, 1991, a Second Petition For Extraordinary Writ and Sanctions (Second Petition), seeking once again to enjoin the RO from contacting Mr. Snyder’s clients regarding fee arrangements and to impose monetary sanctions for interference with the attorney-client relationship.

On August 28, 1991, the Court ordered the Secretary to respond to the Second Petition and set the petition for oral argument. On September 3, 1991, the Court granted the motion of William G. Smith, Esquire, a petitioner in the original consolidated case, to submit an amicus curiae brief.

Shortly after filing the Second Petition, attorney Snyder received a letter dated August 27, 1991, from the VARO in San Diego which included, inter alia, VA Form 2-22a (APR 1991), entitled “Appointment of Attorney or Agent as Claimant’s Representative”. Block 11 of Form 2-22a (APR 1991), headed “Fee Agreement Filing Requirements”, which specifically requests that the represented veteran and his representative indicate if they are claiming an exemption from the statutory requirement that any fee agreements be filed. Block 12 contains language which appears to require an agreement by the veteran and the representative, as a result of their each signing the form, that “no fee or compensation will be charged or received for services rendered ... except as provided” by referenced statutes. Because there is neither a statutory requirement that a fee agreement exist, nor any statutory “exemptions”, nor any authority which mandates that the claimant and the attorney agree to be bound by the statute as a condition of representation, on September 4, 1991, petitioners filed an Amended Second Petition For Extraordinary Writ and Sanctions (Amended Second Petition). The Amended Second Petition seeks, in addition to the relief requested in the original Petition, to enjoin Regional Offices from distributing VA Form 2-22a (APR 1991) until the form is revised.

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Jones v. Derwinski, 1 Vet. App. 596, 1991 U.S. Vet. App. LEXIS 124, 1991 WL 250693 (Cal. 1991).

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