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

27 Fed. Cl. 29, 1992 U.S. Claims LEXIS 194, 1992 WL 333362
CourtUnited States Court of Federal Claims
DecidedOctober 30, 1992
DocketNo. 90-847V
StatusPublished
Cited by1,885 cases

This text of 27 Fed. Cl. 29 (Perreira v. Secretary of the Department of Health & Human Services) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Perreira v. Secretary of the Department of Health & Human Services, 27 Fed. Cl. 29, 1992 U.S. Claims LEXIS 194, 1992 WL 333362 (uscfc 1992).

Opinion

ORDER

HARKINS, Senior Judge.

Petitioners, the parents of Carly C. Perreira, seek review in the United States Claims Court under the National Vaccine Injury Compensation Program (the Program), of a special master’s decision that partially denied petitioners’ application for attorneys’ fees and costs.1

In prior proceedings, the special master, in a bench ruling on May 2, 1991, had denied petitioners’ claim for compensation because of a failure to prove by a preponderance of the evidence an off-Table significant aggravation case. Carly had her first seizure on May 25, 1982, after her second DTP2 inoculation on May 5,1982. She also had seizures on June 23 and June 24, 1982. Carly received a third DTP inoculation on July 21, 1982, and experienced seizures approximately two weeks later on August 3, 1982. Petitioners alleged that Carly’s seizure condition was significantly aggravated by the third DTP shot.

[31]*31The special master’s, written decision on the bench ruling was issued on June 13, 1991. In the absence of a challenge to the denial on the merits of compensation, judgment pursuant to the bench ruling was entered on July 17, 1991. Petitioners’ motion for review concerns only the partial denial of a claim for attorneys’ fees and costs.

Petitioners’ claim for attorneys’ fees and costs, as submitted to the special master, was for a total amount of $15,995.44, of which $6,981.28 was for expert witness charges. Petitioners’ expert had been paid $2,000 for reviewing the case and for a written opinion, which had been submitted to petitioners’ counsel on March 8, 1991. The expert demanded an additional $4,440 to appear and testify, payable up front prior to the evidentiary hearing on May 2, 1991. This amount also was paid.

The special master determined that petitioners’ counsel should have recognized that the expert’s unsupported medical theory was legally insufficient to establish causation in-fact, and that there was no reasonable basis for continuing the case after counsel had reassessed the expert’s report prior to the hearing. The special master allowed attorneys’ fees and costs incurred up to the hearing date. Petitioners were awarded $6,200.43 for the period during which the petition had a reasonable basis.

A special master has discretion to award attorney fees and costs in a case where a petitioner is denied compensation. Section 15(e)(1) provides:

(1) In awarding compensation on a petition filed under section 300aa-ll of this title the special master or court shall also award as part of such compensation an amount to cover—
(A) reasonable attorneys’ fees, and
(B) other costs,
incurred in any proceeding on such petition. If the judgment of the United States Claims Court on such a petition does not award compensation, the special master or court may award an amount of compensation to cover petitioner’s reasonable attorneys’ fees and other costs incurred in any proceeding on such petition if the special master or court determines that the petition was brought in good faith and there was a reasonable basis for the claim for which the petition was brought.

The statute does not require, and does not give petitioners a right to, an award of attorneys’ fees and costs in every case where compensation is denied. The discretion to award attorneys’ fees and costs can be exercised only in cases where it can be determined that the petitioner brought the case in good faith, and that the basis for the claim was reasonable.

Petitioners’ challenge to the special master’s decision on attorneys’ fees and costs fails to recognize the Program is unique in the Judicial Branch and that it operates under special procedures. See Munn v. Secretary of Dep’t of Health & Human Servs., 970 F.2d 863, 868-69 (Fed.Cir.1992). The 1989 Amendments established a separate Office of Special Masters within the Claims Court, administered by a chief special master, and gave that office exceptional authority with considerable administrative independence in decisions on claims for compensation under the Program. Section 12(c). The 1989 Amendments directed promulgation of separate rules for special masters, and established specific criteria the rules were to contain. Section 12(d)(2). Standards were established for conduct of proceedings on a petition. Section 12(d)(3)(B). Review of a special master’s decision by the Claims Court is expected to be an exceptional occurrence rather than a routine procedure.

A special master’s decision may not be disturbed by the Claims Court unless the court finds it to be arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. The 1989 Amendments defined the Claims Court function in a review of a special master’s decision in Section 12(e)(2), as follows:

(2) Upon the filing of a motion under paragraph (1) with respect to a petition, the United States Claims Court shall have jurisdiction to undertake a review of the record of the proceedings and may thereafter—
[32]*32(A) uphold the findings of fact and 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 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.

Section 12(e)(2)(B) is a highly deferential standard of review. “If the special master has considered the relevant evidence of record, drawn plausible inferences and articulated a rational basis for the decision, reversible error will be extremely difficult to demonstrate.” Hines v. Secretary of Dep’t of Health & Human Servs., 940 F.2d 1518, 1528 (Fed.Cir.1991).

This limited scope of review is tailored to the concepts and objectives of the Program. The standard “arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law” is based on one of the criteria established by the Administrative Procedure Act (APA). 5 U.S.C. § 706 (1988). To the extent consistent with Program objectives to be attained through the Office of Special Masters, decisions interpreting the APA standard have application in a review of a special master’s decision. Under the APA standard, conclusions of law are considered de novo. Rice v. Wilcox, 630 F.2d 586, 589 (8th Cir.1980). On issues of law, recognition should be given to the special master’s expertise in the development of the procedures in this novel Program. A decision on issues of law applicable to the Program should be overturned only when error is unmistakably clear.

Rationality is the touchstone of the arbitrary, capricious, abuse of discretion or otherwise not in accordance with law standard of review.

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27 Fed. Cl. 29, 1992 U.S. Claims LEXIS 194, 1992 WL 333362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perreira-v-secretary-of-the-department-of-health-human-services-uscfc-1992.