Luckett v. McDonough ( 2021 )


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  • Case: 20-1632   Document: 38     Page: 1   Filed: 05/20/2021
    NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    DAVID K. LUCKETT,
    Claimant-Appellant
    v.
    DENIS MCDONOUGH, SECRETARY OF
    VETERANS AFFAIRS,
    Respondent-Appellee
    ______________________
    2020-1632
    ______________________
    Appeal from the United States Court of Appeals for
    Veterans Claims in No. 18-4444, Judge Amanda L. Mere-
    dith.
    ______________________
    Decided: May 20, 2021
    ______________________
    KENNETH M. CARPENTER, Law Offices of Carpenter
    Chartered, Topeka, KS, for claimant-appellant.
    SOSUN BAE, Commercial Litigation Branch, Civil Divi-
    sion, United States Department of Justice, Washington,
    DC, for respondent-appellee. Also represented by CLAUDIA
    BURKE, JEFFREY B. CLARK, ROBERT EDWARD KIRSCHMAN,
    JR.; CHRISTOPHER O. ADELOYE, CHRISTA A. SHRIBER, Office
    Case: 20-1632    Document: 38      Page: 2    Filed: 05/20/2021
    2                                    LUCKETT   v. MCDONOUGH
    of General Counsel, United States Department of Veterans
    Affairs, Washington, DC.
    ______________________
    Before REYNA, MAYER, and HUGHES, Circuit Judges.
    HUGHES, Circuit Judge.
    David Luckett appeals the final decision of the United
    States Court of Appeals for Veterans Claims affirming a
    Board of Veterans’ Appeals decision which found that the
    VA overpaid Mr. Luckett $31,551.08 that should have been
    paid to his attorney and that the VA could recoup the over-
    payment. Because we find that the overpayment to
    Mr. Luckett of his attorney’s fee falls within the scope of
    
    38 C.F.R. § 1.911
    (a), we affirm.
    I
    In August 2006, Mr. Luckett appointed John Cameron
    as his authorized representative before the VA and entered
    into a direct-pay contingency fee agreement with Mr. Cam-
    eron under the provisions of 
    38 U.S.C. § 5904
    (d). In a Feb-
    ruary 2010 rating decision, a VA regional office (RO)
    assigned Mr. Luckett a 70 percent disability evaluation for
    post-traumatic stress disorder with an effective date of
    February 21, 2001, which entitled Mr. Luckett to an award
    of past-due benefits. The RO issued its decision in April
    2010 and informed both Mr. Luckett and Mr. Cameron of
    the total amount of past-due benefits and the amount that
    would be withheld and paid directly to Mr. Cameron for his
    attorney fees.
    In June 2010, before Mr. Cameron requested the re-
    lease of his fee, Mr. Luckett submitted claims for additional
    benefits related to his PTSD and for past-due educational
    assistance benefits for his children. The RO granted these
    claims in February 2011, thereby increasing Mr. Luckett’s
    total accumulated benefits and increasing Mr. Cameron’s
    Case: 20-1632     Document: 38      Page: 3    Filed: 05/20/2021
    LUCKETT   v. MCDONOUGH                                       3
    contingency fee entitlement to $31,551.08. Luckett v.
    Wilkie, 
    2019 WL 6794789
     at *1 (Vet. App. 2019).
    In July 2011, the RO informed Mr. Cameron that alt-
    hough he was entitled to his fee, the VA had not withheld
    those funds from the retroactive benefits paid to Mr. Luck-
    ett. In August 2011, the VA’s Debt Management Center no-
    tified Mr. Luckett that he had been overpaid by $31,551.08
    and that the VA would begin to recoup the overpayment
    from his future benefits payments. J.A. 66. The notice ad-
    vised Mr. Luckett of his rights to dispute the debt and to
    request its waiver, both of which Mr. Luckett exercised by
    filing a Notice of Disagreement (NOD) in September 2011.
    J.A. 66–68.
    After filing his NOD, Mr. Luckett perfected his appeal
    to the Board, and the Board issued its decision on April 19,
    2018, upholding the validity of the debt and referring the
    waiver issue to the VA’s Committee on Waiver and Com-
    promises. Only the dispute of the debt is at issue in this
    appeal; Mr. Luckett’s separate waiver request is not at is-
    sue.
    Mr. Luckett then appealed to the United States Court
    of Appeals for Veterans Claims, which issued a written de-
    cision on December 13, 2019, affirming the Board’s deci-
    sion. The Veterans Court decision became final on January
    6, 2020.
    II
    We have limited jurisdiction to review decisions by the
    Veterans Court. “[A]ny party to the case may obtain a re-
    view of [a Veterans Court] decision with respect to the va-
    lidity of a decision of the Court on a rule of law or of any
    statute or regulation . . . or any interpretation thereof . . .
    that was relied on by the Court in making the decision.”
    
    28 U.S.C. § 7292
    (a). Unless a veteran brings a constitu-
    tional challenge, we lack jurisdiction to review any “chal-
    lenge to a factual determination” or any “challenge to a law
    Case: 20-1632    Document: 38      Page: 4    Filed: 05/20/2021
    4                                    LUCKETT   v. MCDONOUGH
    or regulation as applied to the facts of a particular case.”
    
    38 U.S.C. § 7292
    (d)(2).
    Because Mr. Luckett argues that the Veterans Court
    wrongly interpreted 
    38 C.F.R. § 1.911
     to uphold the valid-
    ity of his debt, we have jurisdiction to review this narrow
    issue.
    
    38 C.F.R. § 1.911
    (a) reads, in relevant part: “This sec-
    tion applies to the collection of debts resulting from an in-
    dividual’s participation in a VA benefit or home loan
    program.”
    Mr. Luckett does not dispute that he received
    $31,551.08 to which he was not entitled, nor does he dis-
    pute that “the Secretary has the authority [to] create and
    collect a debt owed to VA by reason of a veteran’s partici-
    pation in the VA benefits program.” Appellant’s Br. 7;
    
    38 C.F.R. § 1.911
    (a). He argues, however, that “[a vet-
    eran’s] participation in a VA benefit . . . program” is sepa-
    rate and distinct from a veteran’s decision to retain counsel
    for assistance in securing those benefits. 
    Id.
     Therefore, he
    contends, section 1.911(a) does not provide the Secretary
    authority to create a debt based on a failure to withhold
    attorney’s fees.
    This argument is unpersuasive. Mr. Luckett partici-
    pated in a VA benefit program by submitting claims for
    benefits, and he chose to do so with the assistance of coun-
    sel with whom he entered into an agreement to pay attor-
    ney fees directly from any past-due benefits. The
    overpayment here resulted from his successful claim for
    veterans benefits and the VA’s oversight in failing to di-
    rectly pay his counsel the required contingency fee based
    on receipt of those past-due benefits. Thus, the overpay-
    ment to Mr. Luckett of his attorney’s fee falls within the
    scope of 
    38 C.F.R. § 1.911
    (a).
    Mr. Luckett also challenges the VA’s action under
    
    38 C.F.R. § 1.911
    (b), which reads:
    Case: 20-1632     Document: 38     Page: 5    Filed: 05/20/2021
    LUCKETT   v. MCDONOUGH                                      5
    When VA has determined that a debt exists by rea-
    son of an administrative decision or by operation of
    law, VA shall promptly demand, in writing, pay-
    ment of the debt. VA shall notify the debtor of his
    or her rights and remedies and the consequences of
    failure to cooperate with collection efforts. Gener-
    ally, one demand letter is sufficient, but subse-
    quent demand letters may be issued as needed.
    Mr. Luckett argues that “[t]here is no evidence that VA
    ever determined that a debt to VA from Mr. Luckett even
    existed by reason of an administrative decision or by oper-
    ation of law.” Appellant’s Br. 12. To the extent Mr. Luckett
    challenges whether the VA actually made such a determi-
    nation, this is a factual question that we do not have juris-
    diction to review. 
    38 U.S.C. § 7292
    (d)(2). To the extent
    Mr. Luckett challenges whether the VA’s determination
    complied with the statutory requirements, this is applica-
    tion of law to fact that we also do not have jurisdiction to
    review. 
    Id.
     In any event, the VA did send Mr. Cameron a
    letter dated July 26, 2011 that stated, “[a] valid fee agree-
    ment was properly filed in the above-cited case by an ac-
    credited attorney, but VA failed to withhold fees in the
    amount of $31,551.08 from past-due benefits . . . .” J.A. 63.
    The VA also notified Mr. Luckett on August 8, 2011 that he
    was paid $31,551.08 more than he was entitled to receive,
    that his benefits would be withheld until the amount he
    was overpaid was recouped, that he “ha[d] the right to dis-
    pute the debt and the right to request waiver,” and that he
    could “pay the debt in full within the next 30 days.” J.A. 66.
    IV
    Because we find that the overpayment to Mr. Luckett
    of his attorney’s fee falls within the scope of 
    38 C.F.R. § 1.911
    (a), and we do not have jurisdiction to consider
    Mr. Luckett’s remaining arguments, we affirm the decision
    of the Veteran’s Court.
    AFFIRMED IN PART AND DISMISSED IN PART
    Case: 20-1632   Document: 38    Page: 6   Filed: 05/20/2021
    6                                LUCKETT   v. MCDONOUGH
    COSTS
    No costs.
    

Document Info

Docket Number: 20-1632

Filed Date: 5/20/2021

Precedential Status: Non-Precedential

Modified Date: 5/20/2021