Opinion ID: 1333456
Heading Depth: 1
Heading Rank: 1

Heading: The Van Hatch Matter

Text: Mr. Hatch had applied to the Veterans' Administration for a re-evaluation of his disability when he became acquainted with respondent. Respondent allegedly solicited employment from Hatch in his claim for increased benefits and charged him an illegal fee for his representation. Following respondent's solicitations, Hatch agreed to allow him to handle his V.A. claim. It was Hatch's understanding respondent's fee would be between $300.00 and $400.00. As payment for the representation, Hatch was to perform maintenance work at a Myrtle Beach motel owned by respondent and his mother. Respondent admitted charging Mr. Hatch a fee of $1,962.00 for the V.A. representation and that this fee was off-set against the more than $2,200.00 which he owed to Mr. Hatch for maintenance performed at the motel. Charging a fee in excess of $10.00 for a claim for increased veterans benefits is in violation of 38 U.S.C.A. Sections 3404 and 3405 and punishable by a fine not to exceed $500.00, or imprisonment not to exceed two years, or both. Although respondent admitted signing a power of attorney to represent Mr. Hatch before the V.A. which clearly stated the limitation on attorneys' fees in such matters, and admitted reading the applicable federal law surrounding V.A. claims, he denied his awareness of the fee limitation. While it is true as respondent asserts he did not receive an illegal fee in cash, he was nevertheless paid through 597 hours of maintenance work performed by Mr. Hatch at respondent's request. Respondent's violation of federal law is not excused by his claimed ignorance of the fee limitation.