William M. Hanlin v. United States

316 F.3d 1325, 2003 U.S. App. LEXIS 105, 2003 WL 42006
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 6, 2003
Docket02-5055
StatusPublished
Cited by103 cases

This text of 316 F.3d 1325 (William M. Hanlin v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William M. Hanlin v. United States, 316 F.3d 1325, 2003 U.S. App. LEXIS 105, 2003 WL 42006 (Fed. Cir. 2003).

Opinions

Opinion for the court filed by Circuit Judge MICHEL. Concurring opinion filed by Senior Circuit Judge PLAGER.

MICHEL, Circuit Judge.

Plaintiff William M. Hanlin, an attorney who represents veterans, appeals the November 1, 2001 decision of the United States Court of Federal Claims granting the government’s motion for summary judgment in this action for breach of contract and denying Hanlin’s cross-motion. Hanlin v. United States, 50 Fed. Cl. 697 (2001). The Court of Federal Claims held that, contrary to plaintiffs sole theory of recovery, no implied-in-fact contract arose between Hanlin and the government. As a result, Hanlin could not recover his attorney fees, which should have been paid directly to him from his client’s past-due benefit award, but were not, after he successfully represented a veteran. We affirm the Court of Federal Claims’ decision that there was no implied-in-fact contract.

BACKGROUND

Hanlin entered into an agreement with a veteran, John Reaves, to provide legal representation for Reaves before the Department of Veterans Affairs (“DVA”) and the United States Court of Appeals for Veterans Claims. The agreement provided that Reaves would pay as attorney fees 20% of any recovery. In the agreement Reaves “specifically authorize^] the Secretary of Veterans Affairs to make direct payment of the attorney’s fee to [his] attorney in the event of a favorable decision.” (J.A. 71.)

Hanlin sent the fee agreement to the Board of Veterans’ Appeals (“Board”) and a regional office of the DVA. Counsel to the Chairman of the Board wrote to Han-lin acknowledging receipt of the fee agreement. Counsel also stated that instruction had been given to the regional office to process the fee agreement for payment of the attorney fees from past-due benefits if such benefits were awarded. More specifically, Counsel indicated that in the event an award was made, the regional office [1327]*1327would promptly pay 80% of the award to the claimant (Reaves) and would withhold 20% of the award, and the case would then be sent to the Board for a decision as to whether the attorney fees should be paid. (J.A. 74.)

In 1997, Reaves was informed that he was entitled to past-due benefits of $63,835. However, the regional office of the DVA erroneously paid Reaves 100% of the benefits instead of withholding 20% for a Board determination regarding the attorney fees. By letter, the regional office informed both Reaves and Hanlin of this mistake and asked Reaves to pay his attorney after the Board decided the amount of the fee payment. The regional office’s letter also mentioned that, under the circumstances, they were “constrained to follow a 1992 precedent opinion of the VA General Counsel (O.G.C.Prec.27-92) in which it was held that VA has no legal authority to pay attorney fees when payment of the complete amount of the past-due benefits has been made to the claimant.” (J.A.76.)

Hanlin then requested a speedy decision on his attorney fees, in reply to which the Board Counsel cited O.G.C. Prec. 27-92 but informed Hanlin that the case nevertheless would be reviewed on its own motion. (J.A. 82.) Apparently the DVA never paid Hanlin. In 1997, Hanlin filed a complaint in the Court of Federal Claims, asking the court to find the government liable for the fee as the DVA, he asserted, was contractually obligated to him directly to pay him 20% of Reaves’ past-due benefits. At the first stage of this lawsuit, the Court of Federal Claims dismissed Han-lin’s complaint for lack of jurisdiction. Hanlin v. United States, 43 Fed. Cl. 34 (1999). That ruling was reversed by this court. Hanlin v. United States, 214 F.3d 1319 (Fed.Cir.2000).

On remand, the government moved for summary judgment. On November 1, 2001, the Court of Federal Claims granted the government’s motion, holding that there was no implied-in-fact contract between Hanlin and the DVA. Hanlin, 50 Fed. Cl. at 701.

Subsequently, the United States Court of Appeals for Veterans Claims issued two decisions holding that the DVA was obligated to pay the correct person, i.e., the attorney who successfully represented the veteran, even if the DVA erroneously paid all the past-due benefits' to the claimant. Snyder v. Principi, 15 Vet.App. 285 (2001), reh’g denied, 16 Vet.App. 62 (2002); Cox v. Principi, 15 Vet.App. 280 (2001), reh’g denied, 16 Vet.App. 62 (2002). In Snyder, the court concluded that VA Gen. Coun. Prec. 27-92, which stated that the DVA had no legal authority to pay attorney fees when the complete amount of the past-due benefits had been paid to the veterans, was invalid. Snyder, 15 Vet.App. at 292.1

Hanlin filed a motion to reconsider in view of Snyder and Cox. The Court of Federal Claims denied the motion on the ground that the reconsideration request involved an argument that could have been presented earlier, but was not. Therefore, the trial court found the argument untimely and reconsideration inappropriate. [1328]*1328Hanlin v. United States, No. 97-751C (Fed. Cl. Nov. 27, 2001) (order denying the motion for reconsideration).

Hanlin appeals. We have jurisdiction under 28 U.S.C. § 1295(a)(3).

DISCUSSION

This court reviews decisions of the Court of Federal Claims granting summary judgment de novo. Cook v. United States, 86 F.3d 1095, 1097 (Fed.Cir.1996). No material facts are disputed. Therefore, summary judgment was appropriate. The parties differ only on whom it should have favored.

Hanlin argues that 38 U.S.C. § 5904(d) and 38 C.F.R. § 20.609(h) create an implied-in-fact contract between him and the DVA. Hanlin also argues that the Court of Federal Claims’ holding that the regulation does not create an implied-in-fact contract renders both the statute and the regulation meaningless. After considering each of Hanlin’s arguments, we agree with the court that there is no implied-in-fact contract.

A

Plaintiff has the burden to prove the existence of an implied-in-fact contract. Pac. Gas & Elec. v. United States, 3 Cl.Ct. 329, 339 (1983), aff'd, 738 F.2d 452 (Fed.Cir.1984) (table). An implied-in-fact contract with the government requires proof of (1) mutuality of intent, (2) consideration, (3) an unambiguous offer and acceptance, and (4) “actual authority” on the part of the government’s representative to bind the government in contract. City of Cincinnati v. United States, 153 F.3d 1375, 1377 (Fed.Cir.1998). Thus, the requirements for an implied-in-fact contract are the same as for an express contract; only the nature of the evidence differs. An implied-in-fact contract is one founded upon a meeting of minds and “is inferred, as a fact, from the conduct of the parties showing, in the light of the surrounding circumstances, their tacit understanding.” Balt. & Ohio R.R. v. United States, 261

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fishbein v. United States
Federal Claims, 2025
Marshall v. United States
Federal Claims, 2025
OSC Solutions, Inc.
Armed Services Board of Contract Appeals, 2023
Davis v. United States
Federal Claims, 2022
Schneiter v. United States
Federal Claims, 2022
Calapristi v. United States
Federal Claims, 2021
Intellicheck, Inc.
Armed Services Board of Contract Appeals, 2021
Thundathil v. United States
Federal Claims, 2021
U.S. Coating Specialties & Supplies, LLC
Armed Services Board of Contract Appeals, 2020
Harvey v. United States
Federal Claims, 2020
Perry v. United States
Federal Claims, 2020
Crawley v. United States
Federal Claims, 2020
Network Documentation & Implementation, Inc.
Armed Services Board of Contract Appeals, 2020
Man & Machine, Inc.
Armed Services Board of Contract Appeals, 2019

Cite This Page — Counsel Stack

Bluebook (online)
316 F.3d 1325, 2003 U.S. App. LEXIS 105, 2003 WL 42006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-m-hanlin-v-united-states-cafc-2003.