Burdett HUSTON v. Anthony J. PRINCIPI, Secretary of Veterans Affairs
No. 01-575
United States Court of Appeals for Veterans Claims
July 11, 2003
17 Vet. App. 195
Before FARLEY, IVERS, and STEINBERG, Judges. STEINBERG, Judge.
REVERSED AND REMANDED.
Tim S. McClain, General Counsel; R. Randy Campbell, Assistant General Counsel; Brian B. Rippel, Acting Deputy Assistant General Counsel, and Michael R. Smalls, all of Washington, D.C., were on the brief for the appellee.
Before FARLEY, IVERS, and STEINBERG, Judges.
STEINBERG, Judge:
The appellant, through counsel, seeks review of a February 21, 2001, Board of Veterans’ Appeals (Board or BVA) decision that denied an effective date earlier than June 7, 1991, for his Department of Veterans Affairs (VA) service-connected bilateral hearing loss; that decision includ-
I. Background
The veteran served honorably in the U.S. Army from June 1941 until September 1945. R. at 11. While serving in World War II, he was injured on March 11, 1945, when shrapnel from a hand grenade struck his left eye and left upper jaw; he was awarded a Purple Heart for his service. R. at 72, 63, 11. On May 15, 1981, the VARO denied, inter alia, the veteran‘s initial claim for VA service connection for bilateral hearing loss (R. at 48-49); the following evidence was apparently then of record: March 1945 morning reports recording that the veteran was “slightly wounded“, a March 1977 VA report of medical examination for disability evaluation that recorded “partial deafness” (R. at 36), a note of “[p]artial deafness . . . when the veteran was hospitalized by VA in June 1980“, and an April 1981 audiometric examination report revealing a history of noise exposure in service and recording the shrapnel wound to the left jaw. See R. at 166 (November 6, 1995, BVA decision listing evidence before RO at time of its May 1981 decision). The RO sent to the veteran in June 1981 notice of that May 1981 decision. R. at 51-52. Also in June 1981, the veteran filed a Notice of Disagreement (NOD), but only as to a separate eye-disability claim (R. at 53-54), and the RO issued a Statement of the Case (SOC) only as to the eye condition (R. at 57-61). Ten years later, in June and December 1991, the veteran filed two VA Form 1-9s (Substantive Appeal to BVA) (R. at 72-73 (referring to his hearing problem but expressing disagreement only as to RO eye-disability decision), 75-76 (stating veteran would present his case at hearing he requested)); it does not appear that those appeals were ever acted on by the Board.
In June 1993, the veteran filed a claim to reopen his previously and finally disallowed service-connection claim for bilateral hearing loss (R. at 90-91); the RO denied service connection in May 1994 (R. at 104-05) and sent notice of that decision to the veteran in June 1994 (R. at 107). The veteran filed an NOD in June 1994 (R. at 112), and in July 1994 the RO issued an SOC (R. at 115-21) and the veteran filed his Substantive Appeal to the Board (R. at 123-24). In November 1995, the Board reopened the veteran‘s claim based on new and material evidence, including a February 1977 VA medical record noting that the veteran had told a physician that he had incurred “a grenade wound to the head” during World War II and suffered “subsequent hearing loss, most severe in the right ear“, a condition that “was confirmed during this hospitalization by impairment demonstrated on audiogram” (R. at 63). R. at 166-67. The Board granted service connection (R. at 168, 170), and on December 15, 1995, the RO assigned a 30% rating for that disability, effective June 29, 1993, the date of the veteran‘s claim to reopen. R. at 174-75. It is unclear from the record on appeal (ROA) when notice of that decision was sent to the veteran; there is no notice attached to the RO decision, although there is a January 10, 1996, letter from the RO notifying the veteran of the grant of service connection for his hearing loss and his amended disability award (taking account of his other service-connected disabilities). R. at 178.
In October 1998, the veteran filed a statement-in-support-of-claim form in which he requested an earlier effective date (EED): “I ask that . . . VA consider the previous final decision a product of [CUE], or that the [EED] should be established based on the old evidence as supplemented by the new and material evidence submitted with the reopened claim.” R. at 192. In June 1999, the RO denied an EED because “[n]o revision is warranted in the decision to grant service connection for a hearing loss effective 06-07-91.” R. at 195-97. In a December 1999 SOC, the RO framed the issue as “[w]hether the decision to grant service connection for a hearing loss effective 06-07-91 was [CUE].” R. at 202-18. The veteran then appealed to the Board (R. at 220-21), after which the RO issued in February 2000 a Supplemental SOC, which stated that the May 1981 decision had become final on June 1, 1982, one year after the date of notice of that decision. R. at 229-31. In response, the veteran filed a statement-in-support-of-claim form, requesting as an effective date the date of his injury, March 11, 1945. R. at 223.
In the BVA decision here on appeal, the Board defined the issue before it as “[e]ntitlement to an effective date prior to June 7, 1991, for an award of service connection for bilateral hearing loss, to include whether the rating decision of May 15, 1981, was clearly and unmistakably erroneous.” R. at 1. The Board then determined that there was no CUE in the May 15, 1981, decision, despite the appellant‘s contention that the RO had failed to consider
The Board also addressed other grounds for obtaining an EED. Reasoning that the May 1981 RO decision became final because the veteran failed to seek appellate review within one year after mailing of notice of that decision, the Board conclud-
The finality of th[at] . . . decision precludes consideration of an effective date of the award of service connection for hearing loss prior to the date of that . . . decision. See
38 U.S.C. [ ] § 5110 ;38 C.F.R. § 3.400(q)(1)(ii) . The veteran eventually prevailed, as a November 1995 Board decision reopened the veteran‘s claim on the basis of new and material evidence and granted service connection for bilateral hearing loss. That decision was effectuated by a December 1995 rating decision which assigned an effective date of June 29, 1993. The veteran disagreed with the effective date, and a September 1998[RO] decision assigned an [EED] of June 7, 1991, which is currently in effect. The veteran continued to express his disagreement with the effective date. As such, the central issue before the Board is the date the RO received the veteran‘s request to reopen his claim which eventually led to the grant of service connection.
R. at 7. The Board determined that June 7, 1991, was the date of receipt of the veteran‘s request to reopen and that “[p]rior to that date, the only correspondence of record pertains only to the veteran‘s left-eye disorder, with no mention of hearing loss“, so there was no basis for an EED by direct challenge of the claim to reopen. R. at 7.
The appellant argues principally as follows: (1) The Board‘s CUE analysis was “illegal” because the September 1998 RO decision, which found CUE in a prior RO decision and awarded the June 7, 1991, effective date here on appeal, was an “original, non-final adjudication on the issue of effective date” (Brief (Br.) at 3, 6-8 (citing
II. Analysis
A. Claim Streams
There are two claim streams in the history of the appellant‘s VA claims for a hearing-loss disorder, see
The second bilateral-hearing-loss claim stream was opened on June 7, 1991, the date that the veteran filed with the RO what the RO determined in September 1998 was an informal claim to reopen. R. at 185, 196; see R. at 73, 63-64, 66-67, 69-70 (documents filed on June 7, 1991). Prior to that September 1998 determination and the award of an effective date based thereon, the RO in May 1994 had denied service connection (R. at 104-05, 107), the appellant in July 1994 had appealed to the Board (R. at 123-24), the Board in November 1995 had found new and material evidence to reopen the previously and finally disallowed claim and had awarded service connection (R. at 164-65, 167-68), and the RO in December 1995 had awarded a 30% bilateral-hearing-loss rating, effective June 29, 1993 (R. at 174-76). In its September 1998 decision assigning the June 7, 1991 (instead of the June 29, 1993) effective date, the RO did so based on its finding of CUE in the December 1995 decision as to the erroneous award of the June 1993 effective date. R. at 185-87. The Court notes that the RO‘s adjudication of the claim under a CUE analysis was in error because the December 1995 RO decision appears not to have been final. Specifically, (1) there is no notice to the veteran of that December 1995 RO decision in the ROA other than a letter dated January 10, 1996, that notified the veteran of the hearing-loss service-connection award and his amended disability award (R. at 178), and the December 18, 1996, NOD thus appears to have been timely; (2) in the decision here on appeal, the Board stated that the “veteran disagreed with the effective date” assigned in the December 1995 RO decision and that “a September 1998[RO] decision assigned an [EED] of June 7, 1991” (R. at 7 (emphasis added)), thereby indicating that the Board considered the appellant‘s claim to be on direct appeal; and (3) the Board did not apply a CUE analysis to its review of the September 1998 RO decision (see R. at 6-8). Although the RO in September 1998 apparently erroneously adjudicated the appellant‘s EED claim on a CUE basis, the decision was favorable to the appellant in that an EED was assigned. Because the appellant timely appealed that decision, this second claim stream is currently still open before the Court.
Therefore, the Court has before it the appellant‘s EED claim based on two different theories: (1) That the appellant is entitled to an EED for the 30% rating based on a direct challenge to the June 1999 RO decision, the most recent RO decision in the current claim stream; and (2) that the May 1981 RO decision contained CUE. Accordingly, there are two separate analyses in the Board decision on appeal: One for CUE in the May 1981 RO decision, which was a final decision, and one for the claim directly on appeal from the June 1999 RO decision, which was a nonfinal decision and is still on appeal and which subsumes the September 1998 RO decision. See Mason (Sangernetta) v. Brown, 8 Vet.App. 44, 51 (1995) (holding that, generally, effective date ear-
B. Direct Challenge of the June 1999 RO Decision
Generally, the effective date of an award of compensation for a service-connected disability will be “the date of receipt of the claim or the date entitlement arose, whichever is later.”
The VCAA amended, inter alia,
The Board is required to consider, and discuss in its decision, all “potentially applicable” provisions of law and regulation. Schafrath v. Derwinski, 1 Vet.App. 589, 593 (1991); see
As to the new notice requirements, in Quartuccio v. Principi this Court specifically held that new section 5103(a) and new
In the February 2001 decision here on appeal, the Board erred by failing to mention or discuss the notice requirements in new section 5103(a) with respect to the veteran‘s direct-appeal EED claim (see R. at 181-82 (December 1996 NOD as to June 1993 effective date), 192 (October 1998 disagreement with June 1991 effective date)) and to determine whether those obligations were fulfilled. See R. at 1-8; Charles, supra. Accordingly, the Court will vacate the BVA decision as to that claim and remand the matter for readjudication; on remand, the Board must provide an adequate statement of reasons or bases for its decision, discussing all potentially applicable law and regulation, including the VCAA and VA regulatory notice provisions. See Charles, Weaver, Allday, Sanden, Schafrath, and Gilbert, all supra; cf. Quartuccio, supra.
Moreover, it appears that VA did not comply with certain notice requirements contained in new section 5103(a), as later implemented by new regulation
Because the ROA contains no specific notice to the appellant that meets the standard established by new section 5103(a) and new
C. CUE
An RO decision that has become final, as has the May 1981 RO decision at issue here, generally may not be reversed or amended in the absence of CUE. See
Where evidence establishes [CUE], the prior decision will be reversed or amended. For the purpose of authorizing benefits, the rating or other adjudicative decision which constitutes a reversal of a prior decision on the grounds of [CUE] has the same effect as if the corrected decision had been made on the date of the reversed decision.
Either the correct facts, as they were known at the time, were not before the adjudicator or the statutory or regulatory provisions extant at the time were incorrectly applied. . . . [CUE is] the sort of error which, had it not been made, would have manifestly changed the outcome . . . [, an error that is] undebatable, so that it can be said that reasonable minds could only conclude that the original decision was fatally flawed at the time it was made.
Russell, 3 Vet.App. 310, 313-14 (1992) (en banc); see also Bustos v. West, 179 F.3d 1378, 1380 (Fed.Cir.1999) (expressly adopting the “manifestly changed the outcome” language in Russell, supra), cert. denied, 528 U.S. 967 (1999). In its recent en banc opinion in Cook v. Principi, the U.S. Court of Appeals for the Federal Circuit reiterated its holding in Hayre v. West, 188 F.3d 1327 (Fed.Cir.1999), which Cook overruled on other grounds, that the Secretary‘s breach of the duty to assist in denying a claim does not constitute CUE. Cook, 318 F.3d 1334, 1336-47 (Fed.Cir.2002) (rehearing en banc), reh‘g denied, No. 00-7171, 56 Fed. Appx. 496, 2023 WL 459755 (Fed. Cir. Feb.3, 2003). “A determination that there was a ‘[CUE]’ must be based on the record and the law that existed at the time of the prior decision.” Russell, 3 Vet.App. at 314. “In order for there to be a valid claim of [CUE], . . . [t]he claimant, in short, must assert more than a disagreement as to how the facts were weighed or evaluated.” Id. at 313; see also Damrel v. Brown, 6 Vet.App. 242 (1994). Moreover, a CUE claim must identify the alleged error(s) with “some degree of specificity.” Crippen, 9 Vet. App. at 420; Fugo, 6 Vet.App. at 44 (“to raise CUE there must be some degree of specificity as to what the alleged error is and . . . persuasive reasons must be given as to why the result would have been manifestly different“).
Russell also established that, as a threshold matter, a CUE claim cannot be raised for the first time before this Court but instead must have been the subject of a final prior BVA adjudication. Russell, 3 Vet. App. at 314-15. When the Court considers the appeal of a BVA determination that there was no CUE in a prior final RO decision, the Court‘s review is limited to deciding whether the Board‘s conclusion is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law“,
In the BVA decision here on appeal, the Board determined that there was no CUE in the May 1981 RO decision. Therefore, the issue is properly raised before this Court. See Russell, 3 Vet.App. at 314-315. The Board considered the veteran‘s argument that “the May 1981[RO] decision contained CUE in that the RO had failed to consider the provisions of
[T]he Board notes that the May 1981[RO] decision contains a reference to the veteran‘s Purple Heart award, and as such, it appears that the RO considered the veteran‘s combat service. However, even accepting that the veteran was exposed to acoustic trauma during service, the evidence at the time of the May 1981[RO] decision simply did not contain a medical opinion relating any current hearing loss to the veteran‘s military service.
(b) In the case of any veteran who engaged in combat with the enemy in active service . . . during a period of war . . . , the Secretary shall accept as sufficient proof of service[ ]connection of any disease or injury alleged to have been incurred in or aggravated by such service satisfactory lay or other evidence of service incurrence or aggravation of such injury or disease, if consistent with the circumstances, conditions, or hardships of such service, notwithstanding the fact that there is no official record of such incurrence or aggravation in such service, and, to that end, shall resolve every reasonable doubt in favor of the veteran. Service[ ] connection of such injury or disease may be rebutted by clear and convincing evidence to the contrary. The reasons for granting or denying service[ ]connection in each case shall be recorded in full.
As stated in part II.A., above, the Board is required to consider, and discuss in its decision, all “potentially applicable” provisions of law and regulation, as well as to include in its decision an adequate written statement of reasons or bases for its findings and conclusions on all material issues of fact and law presented on the record.
The Court notes that, contrary to the appellant‘s contentions, the Board did not “change[ ] the issues on [his] appeal” (Br. at 8), because the appellant himself raised the issue of CUE in an October 1998 statement-in-support-of-claim form in which he requested an EED: “I ask that . . . VA consider the previous final decision a product of clear and unmistakable error” (R. at 192 (emphasis added)). However, the Board should not have proceeded to adjudicate the CUE claim in the first instance without offering to remand the question to the RO. See Sutton v. Brown, 9 Vet. App. 553, 564-70 (1996); Marsh v. West, 11 Vet.App. 468, 471 (1998) (“At the very least, the Board was obligated to ask the veteran whether he objected to the Board‘s adjudication of the NOD jurisdictional issue in the first instance and to include in the statement of reasons or bases for its decision an explanation as to why such adjudication in the first instance was not prejudicial to him.“). That error, unlike the reasons-or-bases defect in the Board decision, cannot be considered nonprejudicial under
As for the appellant‘s contentions regarding the application of the VCAA notice provisions to his CUE claim (Reply at 3-4), the Court has held that these provisions do not apply to CUE claims. Parker v. Principi, 15 Vet.App. 407, 412 (2002); Livesay v. Principi, 15 Vet. App. 165, 179 (2001) (en banc); see also Juarez v. Principi, 16 Vet.App. 518, 520-21 (2002).
III. Conclusion
Upon consideration of the foregoing analysis, the ROA, and the parties’ pleadings, the Court will vacate the February 2001 Board decision and remand the matter for expeditious further development and issuance of a readjudicated decision supported by an adequate statement of reasons or bases, see
VACATED AND REMANDED.
