15-04 329
15-04 329
| Board of Vet. App. | Sep 18, 2017Background
- Veteran served 2007–2011; filed claim for service-connected migraine headaches (received by VA May 10, 2011).
- Attorney (appellant) and Veteran executed a statutory fee agreement in April 2012; attorney perfected appeals seeking higher rating.
- December 2013 RO increased migraine rating from 0% to 30% effective May 10, 2011; VA implemented payment in February 2014.
- Because the Veteran was receiving military retired pay and the combined VA rating was <50% at that time, VA withheld VA compensation (to avoid duplicative payment).
- January 2014 RO denied direct VA payment of attorney fees tied to the December 2013 award because no cash past-due VA benefits were paid to the Veteran; later RO decisions (2015) granted higher ratings and a fee, but the Board limited its review to entitlement tied to the December 2013 decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether VA must pay counsel directly from past-due benefits awarded in Dec. 2013 when no cash retroactive VA payment was made due to military retired pay | Appellant: Snyder means “award” equals gross award; §5904(d) does not require actual cash payment to veteran before attorney can be paid | VA/Board: Regulation 38 C.F.R. §14.636(h)(1)(iii) requires a cash past‑due payment from which VA can deduct fees; statutory and regulatory scheme forbids duplicate payments to retirees | Denied — no direct VA fee payment because no cash past‑due VA benefits were paid to the veteran for the Dec. 2013 award |
| Validity/applicability of 38 C.F.R. §14.636(h)(1)(iii) requiring cash payment before VA deducts fees | Appellant: Regulation conflicts with Snyder and exceeds VA authority | Board: Snyder is distinguishable (addressed reductions for incarceration, not duplicate-retiree withholding); Secretary permissibly restricted fee payment by regulation under §5904 | Held — regulation valid and applicable; appellant did not show conflict with statute |
Key Cases Cited
- Snyder v. Nicholson, 489 F.3d 1213 (Fed. Cir. 2007) (held attorney fee calculation should be based on amount awarded before statutory reduction for incarceration; Court’s definition of “award” is limited to the facts and statutory context of that case)
