National Ass'n of Radiation Survivors v. Derwinski

782 F. Supp. 1392, 1992 WL 15749
District Court, N.D. California·Decided January 29, 1992·No. C-83-1861-MHP·Published·Cited by 3 cases

Opinion

AMENDED FINDINGS OF FACT AND CONCLUSIONS OF LAW

PATEL, District Judge.

Plaintiffs have brought this action to challenge the constitutionality of 38 U.S.C. §§ 3404 and 3405 (now codified as amended at 38 U.S.C. §§ 5904 and 5905), which limit the fee a veteran or veteran’s survivor may pay to an attorney to assist him or her in prosecuting a claim before the Veterans Administration (“VA”) to $10.00, and which impose criminal penalties on attorneys who accept fees in excess of the $10.00 limit. By order of June 12,1984, this court granted plaintiffs’ motion for a preliminary injunction prohibiting the enforcement of the $10.00 fee limit. National Ass’n of Radiation Survivors v. Walters, 589 F.Supp. *1394 1302 (N.D.Cal.1984) [“NARS I”]. The Supreme Court reversed, holding that the fee limit was not unconstitutional on its face. Walters v. National Ass’n of Radiation Survivors, 473 U.S. 305, 105 S.Ct. 3180, 87 L.Ed.2d 220 (1985) [“NARS II”]. However, the Court’s opinion left open the possibility that, on remand, plaintiffs would be able to show that the fee limit was unconstitutional as applied to particular classes of complex claims. See NARS II, 473 U.S. at 337-38, 105 S.Ct. at 3197-98 (O’Connor, J., concurring).

On remand, plaintiffs amended their complaint to challenge the constitutionality of the fee limit as applied to claimants with service-connected disability or death (“SCDD”) compensation claims based on exposure to ionizing radiation. This court granted plaintiffs’ motion for certification of a class consisting of “all past, present and future ionizing radiation claimants who have, or will have, some form of ‘active’ claim relating to SCDD benefits before the VA.” National Ass’n of Radiation Survivors v. Walters, 111 F.R.D. 595, 598 (N.D.Cal.1986) [“NARS III”]. After extensive pretrial proceedings, the matter was tried to the court over a period of nearly two months. The trial included testimony by numerous expert witnesses regarding the medical, scientific and legal complexities characteristic of ionizing radiation claims.

During and after the trial Congress worked to change the manner in which veterans’ claims were adjudicated and reviewed. After adoption of the Veterans’ Judicial Review Act of 1988, Pub.L. No. 100-687, 102 Stat. 4105 (1988), the parties went to great lengths to settle this action in light of the new legislation. 1 Ultimately, the efforts to settle were unsuccessful and the parties returned to this court for a decision on the merits based upon the trial record and other post-trial submissions.

Having considered the evidence presented at trial and the arguments of the parties, and based on the findings of fact and conclusions of law set forth below, the court holds that the $10.00 fee limitation on attorneys’ fees imposed by 38 U.S.C. §§ 3404 and 3405 (now codified as amended at 38 U.S.C. §§ 5904 and 5905) is unconstitutional as applied to SCDD claims for benefits based on exposure to ionizing radiation.

*1395 LEGAL FRAMEWORK

Plaintiffs argue that the $10.00 fee limit, as applied to SCDD claimants whose claims are based on exposure to ionizing radiation and who are not covered by the Veterans’ Judicial Review Act of 1988, violates due process and the First Amendment because it deprives claimants of a meaningful opportunity to present their claims to the VA and to petition the government.

A court faced with a procedural due process challenge must initially determine whether the plaintiffs possess a life, liberty or property interest protected by the Constitution. In reversing this court’s order granting a preliminary injunction, the Supreme Court found it unnecessary to decide whether applicants for SCDD benefits possessed a protected property interest in those benefits. NARS II, 473 U.S. at 320 n. 8, 105 S.Ct. at 3189 n. 8. This court sees no reason to disturb its earlier determination that both recipients of and applicants for SCDD benefits possess a property interest protected by the Constitution. See NARS I, 589 F.Supp. at 1313-14. Indeed, the Ninth Circuit’s decision in Gonzalez v. Sullivan, 914 F.2d 1197, 1203 (9th Cir. 1990), in which the court ruled that an applicant for social security disability benefits has a property interest in those benefits, buttresses this court’s earlier ruling.

Once a court has concluded that the plaintiffs possess a protected interest, the court must examine the procedures provided for the protection of that interest to determine whether they meet the requirements of a due process challenge. See NARS II, 473 U.S. at 320, 105 S.Ct. at 3188. Determining what process is due requires consideration of the three factors set forth in Mathews v. Eldridge:

First, the private interest that will be affected by the official action; second, the risk of an erroneous deprivation of such interest through the procedures used, and the probable value, if any, of additional or substitute procedural safeguards; and finally, the Government’s interest, including the function involved and the fiscal and administrative burdens that the additional or substitute procedural requirement would entail.

424 U.S. 319, 335, 96 S.Ct. 893, 903, 47 L.Ed.2d 18 (1976); see NARS II, 473 U.S. at 321, 105 S.Ct. at 3189.

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National Ass'n of Radiation Survivors v. Derwinski, 782 F. Supp. 1392, 1992 WL 15749 (N.D. Cal. 1992).

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