**§14.637. Payment of the expenses of agents and attorneys in
proceedings before Agencies**

> **of Original Jurisdiction and before the Board of Veterans'
> Appeals.**

\(a\) *Applicability of rule*. The provisions of this section apply to
the services of accredited agents and attorneys with respect to benefits
under laws administered by VA in all proceedings before the agency of
original jurisdiction or before the Board of Veterans' Appeals
regardless of whether an appeal has been initiated.

\(b\) *General*. Any agent or attorney may be reimbursed for expenses
incurred on behalf of a veteran or a veteran's dependents or survivors
in the prosecution of a claim for benefits pending before VA. Whether
such an agent or attorney will be reimbursed for expenses and the method
of such reimbursement is a matter to be determined by the agent or
attorney and the claimant or appellant in the fee agreement filed with
the Office of the General Counsel under §14.636 of this part. Expenses
are not payable directly to the agent or attorney by VA out of benefits
determined to be due to a claimant or appellant.

\(c\) *Nature of expenses subject to reimbursement*. "Expenses" include
nonrecurring expenses incurred directly in the prosecution of a claim
for benefits on behalf of a claimant or appellant. Examples of such
expenses include expenses for travel specifically to attend a hearing
with respect to a particular claim, the cost of copies of medical
records or other documents obtained from an outside source, and the cost
of obtaining the services of an expert witness or an expert opinion.
"Expenses" do not include normal overhead costs of the agent or attorney
such as office rent, utilities, the cost of obtaining or operating
office equipment or a legal library, salaries of the representative and
his or her support staff, and the cost of office supplies.

\(d\) *Expense charges permitted; motion for review of expenses*.
Reimbursement for the expenses of an agent or attorney may be obtained
only if the expenses are reasonable. The Office of the General Counsel
may review the expenses charged by an agent or attorney upon its own
motion or the motion of the claimant or appellant and may order a
reduction in the expenses charged if it finds that they are excessive or
unreasonable. The Office of the General Counsel's review of expenses
under this paragraph will address the issues of eligibility under
§14.636(c) and reasonableness. The Office of the General Counsel will
limit its review and decision under this paragraph to the issue of
reasonableness if another agency of original jurisdiction has reviewed
the fee agreement between the claimant and the agent or attorney and
determined that the agent or attorney is eligible for reimbursement of
expenses. Motions for review of expenses must be in writing and must
include the name of the veteran, the name of the claimant or appellant
if other than the veteran, and the applicable VA file number. Such
motions must specifically identify which expenses charged are
unreasonable; must set forth the reason, or reasons, why such expenses
are excessive or unreasonable and must be accompanied by all evidence
the claimant or appellant desires to submit. Factors considered in
determining whether expenses are excessive or unreasonable include the
complexity of the case, the potential extent of benefits recoverable,
and whether travel expenses are in keeping with expenses normally
incurred by other representatives.

\(1\) A claimant's or appellant's motion for review of expenses must be
served on the agent or attorney and must be filed at the following
address: Office of the General Counsel (022D), 810 Vermont Avenue, NW.,
Washington, DC 20420. The agent or attorney may file a response to the
motion, with any accompanying evidence, with the Office of the General
Counsel not later than 30 days from the date on which the claimant or
appellant served the motion on the agent or attorney. Such responses
must be served on the claimant or appellant. The claimant or appellant
then has 15 days from the date on which the agent or attorney served a
response to file a reply with the Office of the General Counsel. Such
replies must be served on the agent or attorney.

\(2\) The Assistant General Counsel shall initiate the Office of the
General Counsel's review of expenses on its own motion by serving the
motion on the agent or attorney and the claimant or appellant. The agent
or attorney may file a response to the motion, with any accompanying
evidence, with the Office of the General Counsel (022D), 810 Vermont
Avenue, NW., Washington, DC 20420, not later than 30 days from the date
on which the Office of the General Counsel served the motion on the
agent or attorney. Such responses must be served on the claimant or
appellant.

\(3\) The Office of the General Counsel shall close the record in
proceedings to review expenses 15 days after the date on which the agent
or attorney served a response on the claimant or appellant, or 30 days
after the claimant, appellant, or the Office of the General Counsel
served the motion on the agent or attorney if there is no response. The
Assistant General Counsel may, for a reasonable period upon a showing of
sufficient cause, extend the time for an agent or attorney to serve an
answer or for a claimant or appellant to serve a reply. Unless either
party files a Notice of Disagreement with the General Counsel's
decision, the attorney or agent must refund any excess payment to the
claimant or appellant not later than the expiration of the time within
which the General Counsel's decision may be appealed to the Board of
Veterans' Appeals.

\(e\) In addition to whatever other penalties may be prescribed by law
or regulation, failure to comply with the requirements of this section
may result in proceedings under §14.633 of this part to terminate the
agent's or attorney's accreditation to practice before VA.

\(f\) Notwithstanding provisions in this section for closing the record
at the end of the 30-day period for serving a response or 15 days after
the date on which the agent or attorney served a response, appeals shall
be initiated and processed using the procedures in 38 CFR parts 19 and
20. Nothing in this section shall be construed to limit the Board's
authority to remand a matter to the General Counsel under 38 CFR 19.9
for any action that is essential for a proper appellate decision or the
General Counsel's ability to issue a Supplemental Statement of the Case
under 38 CFR 19.31. (Authority: 38 U.S.C. 5904)

(The Office of Management and Budget has approved the information
collection requirements in this section under control number 2900-0085.)

\[73 FR 29875, May 22, 2008\]

**Supplement *Highlights* reference**: 83(3)

*Next Section is §14.664*

Reserved