Mariella B. MASON, Appellant v. Eric K. SHINSEKI, Secretary of Veterans Affairs, Appellee.
No. 10-1554.
United States Court of Appeals for Veterans Claims.
Decided July 31, 2012.
Argued April 10, 2012.
Thomas E. Sullivan, Senior Appellate Attorney, with whom Will A. Gunn, General Counsel, R. Randall Campbell, Assistant General Counsel, and Gayle E. Strommen, Deputy Assistant General Counsel, were on the brief, all of Washington, D.C., for the appellee.
Before KASOLD, Chief Judge, and MOORMAN and DAVIS, Judges.
MOORMAN, Judge:
On July 18, 2012, Mariella B. Mason, the surviving spouse of Kenneth B. Mason, Esq., was granted leave by this Court to substitute as the appellant in this case. She now continues, through counsel, Mr. Mason‘s appeal of a January 13, 2010, Board of Veterans’ Appeals (Board) decision that determined that Mr. Mason had failed to file a timely Notice of Disagreement (NOD) with respect to VA‘s denial of his entitlement to attorney fees. See Record (R.) at 3-8.
The fundamental issue in this case is whether VA may consider an attorney-fees determination to be a “simultaneously contested claim” subject to a 60-day NOD filing period under
I. FACTS
In July 1999, attorney Mason and veteran Phillip C. Corbin executed a representation agreement that directed VA “to withhold twenty percent (20%) of past due benefits payable to [veteran] and pay such amount to [Mr. Mason] as [an] attorney‘s
On November 8, 2005, and again on November 30, 2005, the RO sent letters to Mr. Corbin and Mr. Mason (with a benefits audit correction in the second letter), providing notice that Mr. Mason was not eligible for attorney fees, but that 20% of Mr. Corbin‘s past-due benefits award for individual unemployability, in the amount of $11,806.39, had to be withheld until the appeal period concluded. R. at 49-51, 75-78. Both notice letters stated:
If you disаgree with this determination, you may file a notice of disagreement (NOD). An NOD is a letter telling this office that you disagree with the decision. To initiate appellate review, an NOD must be filed with this office within 60 days after the date of this letter. Since there is more than one party who may claim entitlement to the money being withheld as attorney fees in this case, the provisions relating to simultaneously contested claims are being applied. See
38 U.S.C. § 7105A .
R. at 50, 76. In addition, an Attorney Fee Eligibility Decision was provided, stating that Mr. Mason did not meet the first condition for attorney fees under the then-current
On February 6, 2006, Mr. Mason faxed his NOD to VA. R. at 134. On February 21, 2006, VA informed Mr. Mason that his NOD was not being accepted because it was untimely and should have been filed by January 30, 2006. R. at 132-33. Two days after VA‘s determination, Mr. Corbin discharged Mr. Mason as his representative. R. at 131.
On June 5, 2006, VA received a statement in support of claim from Mr. Corbin explaining, in pertinent part:
My attorney Mr. Kenneth B. Mason knew nothing about me applying for un[e]mployability until you (VA) informed him with the same letter you sent me, dated [N]ovember 30, 2005. Your letter stated that a notice of disapproval [sic] must be filed with your office within 60 days from the date of your letter. It has been 180 days since I received your letter. Please inform me why I have not received the rest of my award. A copy of your letter is enclosed. Thank you for your time, work and consideration.
R. at 101.
On January 7, 2008, VA sent a Statement of the Case (SOC) to Mr. Corbin and Mr. Mason, explaining that an untimely NOD had been filed by Mr. Mason in response to the VA decision to deny payment of attorney fees. R. at 52-73. Subsequently, the Board issued the decision on appeal, concluding that, as a matter of law, Mr. Mason failed to file a timely NOD within 60 days of the VA decision denying entitlement to attorney fees. R. at 4-5 (citing
The appellant argues that his claim for attorney fees is not a “simultaneously contested claim” because the November 8, 2005, and November 30, 2005, notifications denying his entitlement to attorneys fees did not “allow one claim and reject another claim.” Rather, he argues that thе determination of whether an attorney meets the criteria for attorney fees is a matter that is purely administrative and does not involve a contested claim for benefits. Therefore, the appellant argues that the regulations under
However, the Board finds that this case does present a simultaneously contested claim, because the allowance of the appellant‘s claim could result in a loss of benefits to the Veteran because the Veteran would not received [sic] any withheld portion of retroactive benefits for TDIU [(total disability due to individual unemployability)]. The Board finds that this is a situation where one claim is allowed and one is rejected, leading to the payment of a lesser benefits[sic] to the Veteran if the appellant‘s claim is allowed. Therefore, the Board finds that the claim for attorney fees constitutes a contested clаim.
II. ANALYSIS
The appellant argues that the Board erred as a matter of law when it applied
A. Statutory Interpretation
When a court reviews an agency‘s construction of a statute which it administers, it is confronted with two questions. First, always, is the question whether Congress has directly spoken to the precise question at issue. If the intent of Congress is clear, that is the end of the matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress....
“The Court reviews the interpretation of statutes and regulations de novo.” Bradley v. Peake, 22 Vet. App. 280, 290 (2008). “Determining a statute‘s plain meaning requires examining the specific language at issue and the overall structure of the statute.” Gardner v. Derwinski, 1 Vet. App. 584, 586 (1991) (citing Bethesda Hosp. Assn. v. Bowen, 485 U.S. 399, 403-405 (1988)), aff‘d sub nom. Gardner v. Brown, 5 F.3d 1456 (Fed. Cir. 1993), aff‘d sub nom. Brown v. Gardner, 513 U.S. 115 (1994). The cardinal rule is to read the statute as a whole, because the meaning of statutory language, plain or not, depends on context. King v. St. Vincent‘s Hosp., 502 U.S. 215, 221 (1991). A statute should be construed to give effect to all its provisions, “‘so that no part will be inoperative or superfluous, void or insignificant.‘” Corley v. U.S., 556 U.S. 303, 314 (2009) (quoting Hibbs v. Winn, 542 U.S. 88, 101 (2004)). But, when the language of the statute is transparent and its meaning is clear, there is nothing to construe. Lewis v. U.S., 92 U.S. 618, 621 (1875).
Under the statutory provisions of title 38 of the United States Code, only sections 7105 and 7105A dictate the timeliness of an NOD filed for Board review of an adverse VA determination.
Pursuant to
Except in the case of simultaneously contested claims, notice of disagreement shall be filed within one year from the date of mailing of notice of the result of initial review or determination. Such notices, and appeals, must be in writing and be filed with the activity which entered the determination with which disagreement is expressed (hereinafter referred to as the “agency of original jurisdiction“). A notice of disagreement postmarked before the expiration of the one-year period will be accepted as timely filed.
The plain language of section 7105(b)(1) does not indicate whether an attorney-fees determination is subject to the one-year NOD filing period or should be considered a simultaneously contested claim.2 Nor does reading the statute as a whole clarify its potential application to attorney-fees determinations. Instead, the language suggests troubling results might be encountered if the Court were to accept the appellant‘s argument that an attorney-fees determination should be construed under
Turning to the second statutory section,
(a) In simultaneously contested claims where one is allowed and one is rejected, the time allowed for the filing of a notice of disagreement shall be sixty days from the date notice of the adverse action is mailed. In such cases the agency of original jurisdiction shall promptly notify all parties in interest at the last known address of the action taken, expressly inviting attention to the fact that notice of disagreement will not be entertained unless filed within the sixty-day period prescribed by this subsection.
The plain language of section 7105A(a) also fails to indicate whether an attorney-fees determination is subject to the 60-day filing period, explaining only that simultaneously contested claims are “where one is allowed and one is rejected.”
The appellant argues that Mr. Mason should have had one year to file his NOD under section 7105, because filing a copy of his fee agreement with VA did not constitute the filing of a “claim“; thus, the attor-
In sum, rеview of sections 7105 and 7105A indicates that Congress has not directly spoken to the precise question of whether an attorney-fees determination constitutes a simultaneously contested claim. Therefore, the Court holds that the language of sections 7105 and 7105A does not provide clear guidance in regard to the filing of an NOD after an attorney-fees determination. The broad language of section 7105A(a), considered in conjunction with section 7105(b)(1), results in a statutory gap permitting VA to specifically determine which categories of disputes might constitute simultaneously contested claims. See
B. Regulatory Interpretation
1. Plain Language
When interpreting a VA regulation, the Court first reviews the plain language, and if it is ambiguous, turns to consider the reasonableness of the Secretary‘s regulatory interpretation. Meedel v. Shinseki, 23 Vet. App. 277, 280-81 (2009). The implementing regulation for section 7105A states: “In simultaneously contested claims, the Notice of Disagreement from the person adversely affected must be filed within 60 days from the date of mailing of the notification of the determination to him or her; otherwise, that determination will become final.”
However,
The Court finds that
2. Secretary‘s Interpretation of Regulation
Deference is afforded to an agency‘s interpretation of its own regulation, as long as that interpretation is not “‘plainly erroneous or inconsistent with the regulation.‘” Smith v. Nicholson, 451 F.3d 1344, 1349-50 (Fed. Cir. 2006) (quoting Bowles v. Seminole Rock & Sand Co., 325 U.S. 410, 415 (1945)); see Meedel, 23 Vet. App. at 281; Johnson v. Brown, 7 Vet. App. 95, 99 (1994). An agency‘s interpretation of its regulations does not require the same observance of formalities as when an аgency interprets a statute; even if VA‘s fair and considered judgment on the matter in question is only reflected in litigating documents, it must be afforded deference. See Reizenstein v. Shinseki, 583 F.3d 1331, 1335 (Fed. Cir. 2009); Smith, 451 F.3d at 1351.
The Secretary argues that “a request for direct payment by the Secretary of attorney fees out of a past due benefit award is indeed a claim for benefits,” and that an attorney-fees eligibility determination implicates a situation in which the “allowance of one claim results in the payment of a lesser benefit to another claimant.” Secretary‘s Br. at 9 (quоting
An attorney-fees determination begins with the filing of a fee agreement, which may provide for the payment of attorney fees out of an award of past-due bеnefits. See
The Secretary formalized his interpretation in the VA Adjudication Procedures Manual, M21-1 MR, pt. III, subpt. vi., ch. 6, § A. 1.e (“Claims Involving Attorney Fee Withholding ... The failure to withhold 20 percent of past due benefits and the dеnial of payment of such claims ... should be handled as a contested claim due to the possibility that VA may be required to attempt to collect fees paid to the attorney from the claimant.“), and there is no doubt it reflects the agency‘s fair and considered judgment on the matter in question. Further, the Secretary‘s regulatory interpretation is not inconsistent with other VA regulations, including the definitions of “benefit,” “claimant,” and “past-due benefits” under
Further, the Court notes the appellant‘s unsupported assertion that “[t]he process of determining an attorney‘s eligibility to lawfully charge and receive a fee is a ministerial function of the VA.” App. Br. at 6-7. However, “[t]he agency of original jurisdiction‘s [attorney fees] eligibility determination is a final adjudicative action and may be appealed to the Board.”
Mason contends that the Veterans Court improperly authorized his former client Scates to participate in the Regional Office proceedings to determine Mason‘s right to a fee. Scates, however, has a substantial, immediate and direct financial interest in the attorney fee claim, since the Department‘s payments to Mason will be made from the twenty pеrcent of Scates’ accrued benefits that the Department withheld for that purpose. If less than the twenty percent is paid to Mason, presumably the balance will be paid to Scates.
III. CONCLUSION
After consideration of the appellant‘s and the Secretary‘s arguments and briefs, and a review of the record, the Court holds that the Secretary‘s interpretation of an attorney-fees determination as being “the allowance of one claim result[ing] in the payment of a lesser benefit to another claimant,” is not plainly erroneous or inconsistent with VA regulations or the beneficent congressional intent evidenced within the United States Code. See Chevron, Gardner, and Smith, all supra;
Notes
Copies of the “statement of thе case” prescribed in paragraph (1) of this subsection will be submitted to the claimant and to the claimant‘s representative, if there is one. The claimant will be afforded a period of sixty days from the date the statement of the case is mailed to file the formal appeal. This may be extended for a reasonable period on request for good cause shown. The appeal should set out specific allegations of error of fact or law, such allegations related to specific items in the statеment of the case. The benefits sought on appeal must be clearly identified. The agency of original jurisdiction may close the case for failure to respond after receipt of the statement of the case, but questions as to timeliness or adequacy of response shall be determined by the Board of Veterans’ Appeals.
Upon the filing of a notice of disagreement, all parties in interest will be furnished with a statement of the case in the same manner as is prescribed in section 7105. The party in interest who filed а notice of disagreement will be allowed thirty days from the date of mailing of such statement of the case in which to file a formal appeal. Extension of time may be granted for good cause shown but with consideration to the interests of the other parties involved. The substance of the appeal will be communicated to the other party or parties in interest and a period of thirty days will be allowed for filing a brief or argument in answer thereto. Such notice shall be forwarded to the last known address of record of thе parties concerned, and such action shall constitute sufficient evidence of notice.
