Mаry Ann TETEN, Appellant, v. Anthony J. PRINCIPI, Secretary of Veterans Affairs, Appellee.
No. 98-1244.
United States Court of Appeals for Veterans Claims.
May 13, 2002.
16 Vet. App. 112
Robert A. Laughlin, of Omaha, NE, was on the pleadings for the appellant. John H. Thompson, Acting General Counsel; Ron Garvin, Assistant General Counsel; Michael A. Leonard, Deputy Assistant General Counsel; and Adam K. Llewellyn, all of Washington, DC, were on the pleadings for the appellee.
STEINBERG, Judge:
Before the Court is the appellant‘s November 9, 2000, application, through counsel, for attorney fees and expenses pursuant to the Equal Access to Justice Act,
I. Background
The appellant, the widow of a veteran, through counsel, previously sought review of a May 1998 Board of Veterans’ Appeals (BVA or Board) decision that dismissed for lack оf legal merit a claim for Department of Veterans Affairs (VA) service connection for her deceased husband‘s kidney disorder for the purpose of accrued benefits under
On January 31, 1995, the Court dismissed that appeal, because it found that under Landicho v. Brown, 7 Vet.App. 42 (1994), substitution of parties was not permissible in this instance. Teten v. Brown, No. 91-1492, 1995 WL 59079 at *1 (Jan. 31, 1995) [hereinafter Teten I]. In that dismissal order, the Court vacated the April 1991 BVA decision, directed VA to vacate any underlying VARO decisions, and then noted that the purpose of that remedy was “to ensure that the BVA decision and the underlying RO decision will have no preclusive effect in the adjudication of any accrued-benefits claims derived from the vetеran‘s entitlements“. Ibid.
In April 1993, the appellant, as the veteran‘s surviving spouse, filed with an RO an application for, inter alia, accrued benefits (R. at 61-64); that claim was denied in July 1993 (R. at 75). In September 1995, the RO denied service connection for the veteran‘s cause of death and, inter alia, again denied the appellant‘s attendant claim for accrued benefits. Supplemental R. at 1-10. On appeal of that decision to the BVA, the Board in May 1998 denied accrued benefits, on the grounds that the appellant was ineligible because (1) the veteran‘s kidney disorder was not service connected at the time of his death and (2) a claim for VA service connection for that disorder was not pending at his death. R. at 6-7. The Board based its conclusion that the veteran had no claim pending at the time of his death on the fact that it had denied his motion for BVA reconsideration before he died. Ibid.
The Court, in a July 21, 2000, opinion, reversed the May 1998 BVA decision and remanded the matter for readjudication. Teten II, 13 Vet.App. at 563-64. In that underlying merits appeal, the appellant had argued, inter alia, that the Board had erred in determining that the veteran had no claim pending before VA at the time of his death. Id. at 562. In reversing the May 1998 BVA decision and remanding
The Board . . . denied the appellant‘s accrued-benefits claim based on the Federal Circuit‘s holding in Jones (Ethel) [v. West], 136 F.3d [1296,] 1300 [(Fed.Cir.1998), cert. denied, 525 U.S. 834 (1998)], that “without the veteran having a claim pending at time of death, the surviving spouse has no claim upon which to derive . . . her own application” for accrued benefits. R. at 6. In that May 1998 BVA decision, the Board failed to apply or even mention this Court‘s January 1995 order that had vacated the April 1991 BVA decision (and consequently any underlying RO decision, see Yoma v. Brown, 8 Vet.App. 298, 299 (1995) (per curiam order)), upon which the veteran‘s motion for BVA reconsideration was based. Teten [I], 1995 WL 59079, at *1; R. at 77-78. That 1995 Court order had vacated the April 1991 BVA decision in order “to еnsure that the BVA decision [which had not become final upon the veteran‘s death] and the underlying RO decision [would] have no preclusive effect in the adjudication of any accrued-benefits claims derived from the veteran‘s entitlements.” Ibid.; see also Landicho [v. Brown], 7 Vet.App. [42,] 53-54 [(1994)] (holding that, where veteran dies during pendency of claim, appropriate remedy is for Court to vacate BVA and RO decisions in order that those decisions will “pose no actual or threatenеd injury” to any accrued-benefits claimants); [(other citations omitted) ].
In a recent opinion in Kelsey v. West, 13 Vet.App. 437 (2000) (per curiam order), this Court held that, “where a veteran dies subsequent to a Board decision, but prior to filing an NOA . . ., there is no discernible basis for a different outcome” from the outcomes in Zevalkink [v. Brown], 102 F.3d 1236 (Fed.Cir.1996), Swanson [v. West], 13 Vet.App. 197 (1999) (per curiam order), Landicho, [supra,] and Smith (Irma) [v. Brown], 10 Vet.App. 330 (1997). . . . Kelsey [v. West], 13 Vet.App. 437, 438. We conclude that the situation in this case is no different from the situation in Kelsey. That is, even if the veteran had filed a motion for BVA reconsideration, he “[d]ied subsequent to a Board decision, but priоr to filing an NOA“, Kelsey, supra, and before the NOA-filing period had expired. See Rosler v. Derwinski, 1 Vet.App. 241, 249 (1991) (holding that NOA is timely and Court has jurisdiction to hear appeal where appellant has (1) filed motion for BVA reconsideration within 120 days after mailing date of notice of underlying final BVA decision and also (2) filed NOA within 120 days after BVA Chairman has mailed notice of denial of reconsideration motion). Accordingly, we conclude that the veteran‘s claim remained pending at the time of his death, because the 120 day period within which he could filе an NOA as to the BVA decision had not yet run. [ (Citations omitted).] The Court thus holds that the May 1998 BVA decision erred in failing to adjudicate the appellant‘s claim for accrued benefits.
Id. at 562-63 (emphasis added in first two places). The Teten II opinion thus enunciated two holdings: First, the Court held that the BVA erred in its 1998 decision in failing “to apply or even mention this Court‘s January 1995 order that had vacated the April 1991 BVA decision“. Id. at 562. Second, the Court held that even before the Court issued its 1995 order, the BVA decision was not final becausе the appellant had died before the expiration of the 120 day judicial-appeal period, thereby causing his claim to remain open. Id. at 563.
On February 21, 2002, the Court received from the appellant a pleading entitled “Appellant‘s Appendice/Response Concerning Remand Pursuant to E.A.J.A.” Therein the appellant informed the Court that, pursuant to our decision in Teten II, the RO had awarded accrued benefits to her on November 8, 2001, based on a finding of service connection for the veteran‘s kidney disorder, rated at 10% disabling.
II. Analysis
This Court has jurisdiction to award reasonable attorney fees and expenses pursuant to
“Once an appellant has alleged a lack of substantial justification, the burden shifts to the Secretary to prove that VA was substantially justified in [both] its administrative and litigation positions.” Cullens v. Gober, 14 Vet.App. 234, 237 (2001) (en banc) (citing Locher v. Brown, 9 Vet.App. 535, 537 (1996)). This Court has established the follоwing standard to determine whether the Secretary has carried that burden:
[T]he VA must demonstrate the reasonableness, in law and fact, of the position
of the VA in a matter before the Court, and of the action or failure to act by the VA in a matter before the VA, based upon the totality of the circumstances, including merits, conduct, reasons given, and consistency with judicial precedent and VA policy with respect to such position, and action or failure to act, as reflected in the record on appeal and the filings of the parties before the Court.
Stillwell v. Brown, 6 Vet.App. 291, 302 (1994). Furthermore, “reasonableness is determined by the totality of the circumstances, and not by any single-factor approach.” Ibid. (citing Chiu v. United States, 948 F.2d 711, 715 n. 4 (Fed.Cir.1991)).
A. Background of Litigation
At this point, we believe that it is helpful to an understanding of the positions of the parties, of the Court‘s prior actions in this case, and of our disposition of the pending EAJA application to reiterate the chronology of pertinent events and their significance in terms of the Court‘s ruling in Teten II.
The veteran‘s claim to reopen as to his previously and finally disallowed service-connection claim was, as a matter of law, pending at his death on July 23, 1991, by virtue of two separate factors. See Teten II, 13 Vet.App. at 563 (concluding: “In view of all the foregoing analyses, the Court will reverse the May 1998 BVA decision and remand that matter for the Board to adjudicate the merits of the accrued-benefits claim.“). First, at the time of his death, the BVA decision had not become final, because the time for him to file a timely appeal to this Court under
The Court‘s jurisdiction in 1995 to order the vacaturs derived from the appellant‘s September 1991 NOA, which she filed on her husband‘s behalf within 120 days after the BVA Chairman‘s July 1991 denial of her husband‘s motion for reconsideration. (At that time, Rule 43(a)(1) of the Court‘s Rules of Procedure and Practice authorized her to file such an NOA, see Landicho, 7 Vet.App. at 47-48 (explaining that deceased veteran‘s spouse could not be permitted to substitute for veteran for purposes of adjudication of claims absent a disability-compensation claim or accrued-benefits claim currently properly pending before Court).) That filing within the judicial-apрeal period thus tolled that 120-day period for filing an NOA in this Court under
B. Substantial Justification
The Secretary argues that his positions at the administrative and litigation levels were both substantially justified because he reasonably relied upon then-existing precedent that was subsequently altered by the Court‘s opinion in Kelsey, supra, decided on April 14, 2000. Even if we were to assume that the Secretary is correct in his characterization of the holding in Kelsey, we conclude, for the reasons set forth below, that the Secretary has still not carried his burden to prove that his position at the administrative stage was substantially justified, see Cullens and Locher, both supra.
At the administrative stage, the Secretary, through the Board, took the position that the deceased veteran had no claim pending at his death and that, therefore, the appellant‘s claim for accrued benefits lacked legal merit. R. at 6-7 (citing Jones (Ethel), supra). As described above, the Court in Teten II made two holdings as to the May 1998 Board decision: One regarding the Board‘s failure to deal with the Landicho effect of the Court‘s January 1995 order, and a second regarding the Board‘s failure to recognize that under Rosler, supra, the BVA decision had not become final at the veteran‘s death. As to the latter matter, we agree with the Secretary that, in effect, it was not unreasonable for the Board not to have anticipated that the Court would rule in Teten II that the BVA decision had never become final because it was still appealable at the veteran‘s death. To the extent that such a holding was foreshadowed by Kelsey, supra, that opinion was issued over two years after the Board‘s May 1998 decision on appeal. The Court notes, however, that that holding was necessary only to establish that the Court in 1995 had indeed acted with jurisdiction over the April 1991 BVA decision that the Court then vacated (because that decision was still not final as of January 1995). The key holding in Teten II concerned the effect of the Board‘s complete failure to recognize or discuss in any way the fact that in January 1995 this Court (1) had vacated the April 1991 BVA decision that denied the veteran‘s claim to reopen as to his previously and finally disallowed claim for service cоnnection for his kidney disorder and (2) had directed VA to vacate any underlying RO decisions. Teten II, 13 Vet.App. at 562 (“the Board failed to apply or even mention this Court‘s January 1995 order that had vacated the April 1991 BVA decision“); Teten I, supra; R. at 77. The Court stated expressly in its 1995 order that it was taking those actions in order “to ensure that the BVA decision and the underlying RO decision will have no preclusive effect in the adjudication of any accrued-benefits claims derived from the veteran‘s entitlements“. Teten I, supra. Therefore, the BVA was
C. Reasonableness of Fee Request
Next, the Court must determine what amount constitutes reasonable attorney fees in this case.
See
The appellant requests reimbursement for $9,786.63 in attorney time (73.1 hours at $133.88 per hour) and $132.55 in expenses, for a total of $9,919.18. Application (Applic.) at 6. In his response, the Secretary does not contest the hourly rate requested or even discuss the reasonableness of the request. However, the Court has an obligation to inquire into reason
Altogether the appellant claims a little over 40 hours for the preparation of his brief and reply brief. Applic., Statement for Professional Services Rendered (Stmt.) at 2-3. In view of the fact that 18 of the 37 total pages in these pleadings were devoted to nongermane contentions relating to matters beyond this Court‘s jurisdiction, the Court will deduct half of the 40 hours claimed, or $2,677.60 (20 hours x $133.88). For the same reason, the Court will also reduce by half the expenses claimed for photocopying the appellant‘s brief ($19.60) and apparently for photocopying the reply brief ($9.00) (Applic., Stmt. at 4), a net reduction of $14.30. Hence, the Court will award $7,227.28 as the amount for reasonable fees and еxpenses. See Smith (Wilfred) v. Brown, 8 Vet.App. 327, 329-30 (1995) (citing Hensley, 461 U.S. at 440, for proposition that where claims are not related, hours spent on unsuccessful claims should be eliminated, but where claims are related and not easily separated, Court must examine extent of success on those claims); Uttieri v. Brown, 7 Vet.App. 415, 419 (1995) (reducing hours based on Court‘s determination that claim of clear and unmistakable error was not properly before the Court and on Court‘s rejection of appellant‘s argumеnt for reversal of BVA decision as clearly erroneous); cf. Swiney v. Gober, 14 Vet.App. 65, 74-75 (2000) (reducing EAJA award where appellant “obtained less than full success on [two] severable issues“); Elcyzyn v. Brown, 7 Vet.App. 170, 177 (1994) (citing Hensley, supra, in support of Court‘s decision to reduce fees for hours spent preparing claim on which Secretary was substantially justified).
III. Conclusion
Upon consideration of the foregoing analysis and the pleadings of the parties, the Court grants the appellant‘s EAJA application in part, in the amount of $7,227.28.
APPLICATION GRANTED IN PART.
