Neher v. Secretary of the Department of Health & Human Services

23 Cl. Ct. 508, 1991 U.S. Claims LEXIS 300, 1991 WL 130540
CourtUnited States Court of Claims
DecidedJune 27, 1991
DocketNo. 90-431V
StatusPublished
Cited by2 cases

This text of 23 Cl. Ct. 508 (Neher v. Secretary of the Department of Health & Human Services) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neher v. Secretary of the Department of Health & Human Services, 23 Cl. Ct. 508, 1991 U.S. Claims LEXIS 300, 1991 WL 130540 (cc 1991).

Opinion

OPINION1

HORN, Judge.

This is an action for compensation for a vaccine-related injury to petitioner, Janine [510]*510M. Neher, brought on her behalf by her parents, Douglas Neher and Jean Royce Neher. Petitioner seeks compensation under The National Vaccine Injury Compensation Program, as established by The National Childhood Vaccine Injury Act of 1986 (codified, as amended, at 42 U.S.C.A. §§ 300aa-l—300aa-34 (West Supp.1990)) (Vaccine Act).2

Respondent, Secretary of the Department of Health and Human Services (HHS), conceded that petitioner is entitled to compensation under the Vaccine Act. A hearing on appropriate damages was conducted on February 22, 1991 before Chief Special Master Golkiewicz. On March 18, 1991, the chief special master filed his final Decision awarding petitioner compensation. The award consisted of an annuity, to be purchased by the respondent to cover the annual projected costs of care for the petitioner in the amount of $16,200 in annual costs for the first year after the award and $49,800 in annual costs thereafter. The award also included a $100,000 lump sum payment to be paid in four equal, annual installments of $25,000, “to give a small level of flexibility to the plan to deal with fluctuations in the yearly inflation rates and relatively minor changes in service needs not accounted for by the above levels of compensation.”

The case is now before the United States Claims Court on respondent’s motion to review that portion of the award which gave the petitioner a $100,000 lump sum to provide for fluctuations in the yearly inflation rates and relatively minor changes in service needs. Respondent alleges that the chief special master’s award of the $100,-000 is arbitrary, capricious, an abuse of discretion and not in accordance with the law.

After reviewing the submissions of the parties, the court has determined that the issue on which the respondent seeks review is clearly set out in the pleadings and the administrative record and that no oral argument is necessary for this court to reach its decision. After consideration of respondent’s motion for review, petitioner’s response, and the record on file in the case, this court finds that Chief Special Master Golkiewicz erred when he awarded petitioner $100,000 in a lump sum payment in addition to the annuity. For the reasons discussed more fully below, the award of the $100,000 lump sum by the chief special master is REVERSED; judgment for the petitioner should be entered to cover the costs of purchasing an annuity to fund the annual, projected costs of care for the petitioner in the amount of $16,200 in annual costs for the first year after the award and $49,800 in annual costs thereafter.

BACKGROUND

Petitioner’s representatives, Douglas Neher and Jean Royce Neher, filed their petition on behalf of their daughter, Janine M. Neher, for compensation under the Vaccine Act on May 21, 1990. They claimed that Janine’s injuries were caused by a diphtheria-pertussis-tetanus (DPT) vaccine she received on May 22, 1967. Respondent conceded that petitioner was entitled to compensation under the Vaccine Act. The only matter at issue before the chief special master, therefore, was the appropriate amount of compensation.3

[511]*511On February 22, 1991, a hearing on damages was conducted by telephone and on March 18, 1991, the chief special master issued his final Decision setting the levels of compensation. The Decision called for an annuity to be purchased by respondent to pay out the monthly benefits necessary to fund the annual costs of care for the petitioner, as found by the chief special master to be supportable by the facts in the record and an additional $100,000 lump sum payment. The award was detailed in the chief special master’s Decision, as follows:

1st yr. 2nd yr. +4
Therapies/attendant care $12,000
Group Home $14,400
Therapeutic services $31,200
Medications & related medical services $ 4,200 $ 4,200
Total $16,200 $49,800

In addition, a lump sum payment of $100,000 is provided to give a small level of flexibility to the compensation plan to deal with fluctuations in the yearly inflation rates and relatively minor changes in service needs not accounted for by the above levels of compensation.

Payment of this compensation shall be made through the combination of a $100,-000 lump sum to be paid in four equal annual installments of $25,000 and through an annuity paying out the monthly benefits necessary to fund the above annual costs. Respondent shall purchase and take ownership of an annuity contract from an A+ (superior) company with a rating of class VI or better. The contract shall be based on a growth factor of 5% compounded annually. Neher v. Secretary of the Dept. of Health and Human Services, No. 90-431V, slip op. at 2, 1991 WL 44451 (Cl.Ct. Special Master March 18, 1991).

Respondent filed a Motion for Review on April 17, 19915 and on May 16, 1991, petitioner filed a response. Subsequently, on June 18, 1991, the petitioner filed a Notice of Additional Authority with this court.

DISCUSSION

Respondent has asked for review of the chief special master’s decision on only one very narrow issue. The question at issue involves the propriety of the chief special master’s award of the $100,000 lump sum, over-and-above the award of the annuity to be purchased to cover the petitioner’s, projected, injury-related, annualized expenses.

Following the filing of a motion to review by either party, the Claims Court, pursuant to section 300aa-12(e)(2) of the Vaccine Act, may:

(A) uphold the findings of fact or conclusions of law of the special master and sustain the special master’s decision,
(B) set aside any findings of fact or conclusion of law of the special master found to be arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law and issue its own findings of fact and conclusions of law, or
(C) remand the petition to the special master for further action in accordance with the court’s direction.

[512]*51242 U.S.C.A. § 300aa-12(e)(2). Rule 5 of the Vaccine Rules, Part II, RUSCC, Appendix J, repeats the statutory direction.6

Citing to the Report of the Conference Committee of the House & Senate on the 1989 Amendments to 42 U.S.C.A. § BOOaa-12(e)(2), 135 Cong.Rec. H9477 (daily ed. Nov. 21, 1989), this court has previously held that Congress intended that a decision of a special master be overturned only in limited circumstances and only when such a decision is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Dolney v. Secretary of HHS, 23 Cl.Ct. 337, 341-342, (Cl.Ct.1991); Metzger v. Secretary of HHS, 22 Cl.Ct. 123, 127-28 (1990); see also Loe v. Secretary of HHS, 22 Cl.Ct. 430, 432 (1991); Mobley v. Secretary of HHS, 22 Cl.Ct. 423, 426 (1991).

The Court of Appeals for the Federal Circuit has clearly articulated its understanding of what constitutes an arbitrary and capricious decision by a finder of fact. Citing

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Neher v. Secretary
984 F.2d 1195 (Federal Circuit, 1993)

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Bluebook (online)
23 Cl. Ct. 508, 1991 U.S. Claims LEXIS 300, 1991 WL 130540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neher-v-secretary-of-the-department-of-health-human-services-cc-1991.