Burdett HUSTON, Appellant, v. Anthony J. PRINCIPI, Secretary of Veterans Affairs, Appellee.
No. 01-575.
United States Court of Appeals for Veterans Claims.
Sept. 14, 2004.
18 Vet. App. 395
Before FARLEY, IVERS, and STEINBERG, Judges.
Theodore C. Jarvi, of Tempe, Arizona, was on the brief for the appellant. 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.
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 also addressed the issue whether a May 15, 1981, VA regional office (RO) decision denying service connection for that condition contained clear and unmistakable error (CUE). Record (R.) at 1-3. The appellant and the Secretary each filed briefs, and the appellant filed a reply brief. The
The Secretary appealed this Court’s opinion to the U.S. Court of Appeals for the Federal Circuit (Federal Circuit), and the Federal Circuit subsequently vacated this Court’s opinion and remanded the matter for further proceedings consistent with its opinion in Conway v. Principi, 353 F.3d 1369 (Fed.Cir.2004), which held that “this Court is required to ‘take due account of the rule of prejudicial error’ in all cases addressing the notice requirements in
I. Background
The veteran served honorably in the U.S. Army during World War II, from June 1941 until September 1945. R. at 11. 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. R. at 72, 63, 11. On May 15, 1981, the RO 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
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 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. On December 18, 1996, the veteran filed an NOD as to the December 1995 RO decision’s assignment of the June 1993 effective date. R. at 181-82. In September 1998, the RO issued another decision in which it determined that there was CUE in the December 1995 RO decision and assigned an effective date of June 7, 1991, the date that “the veteran had reopened his claim.” R. at 185-87. That date corresponds to the receipt date of a VA Form 1-9 filed by the veteran that largely pertained to his eye claim but also stated that he was told during a 1981 examination that his “hearing loss could have been caused by a sharp blast and the shrapnel from the grenade.” R. at 73. Also received on that date (apparently with that form) were the 1977 VA hospital report (R. at 63-64); a letter from a private hearing-aid specialist, attesting to the veteran’s hearing loss (R. at 66-67); and a June 1991 statement by an individual, identified as a “Veterans Service Officer”, asserting that the veteran had made two prior applications for assistance in purchasing hearing aids (R. at 69-70). It appears that the Board considered at least one of these documents to be an informal claim to reopen. See R. at 185.
In October 1998, the veteran filed a statement-in-support-of-claim form in which he requested an 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
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, RO 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 concluded:
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 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[RO] 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.
II. Analysis
A. Parties’ Contentions
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
B. 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 appellant 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 1991 (instead of the June 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
Therefore, the Court has before it the appellant’s EED claim based on two different theories: (1) That the May 1981 RO decision contained CUE; and (2) 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. 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 earlier than date assigned in previous RO decision may be awarded only if there was CUE in that decision or it never became final).
C. CUE Claim
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”
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 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 appellant’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 [appellant’s] Purple Heart award, and as such, it appears that the RO considered the [appellant’s] combat service. However, even accepting that the [appellant] 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 [appellant’s] military service.
R. at 5.
(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.
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
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. See Livesay v. Principi, 15 Vet.App. 165, 179 (2001) (en banc); Parker v. Principi, 15 Vet.App. 407, 412 (2002); see also Juarez v. Principi, 16 Vet.App. 518, 520-21 (2002).
D. Direct-Appeal EED Claim
The Secretary seeks to stay proceedings in the instant case pending the final disposition of McCutcheon v. Principi, No. 01-1027, and Conway v. Principi, No. 01-0107. In opposition, the appellant argues that the Secretary “fails to explain how future decisions would affect this case” and that this Court’s decision in Pelegrini v. Principi, 18 Vet.App. 112 (2004), provides adequate precedential authority for application of
III. Conclusion
Upon consideration of the foregoing analysis, the ROA, and the parties’ pleadings, and having “take[n] due account of the rule of prejudicial error” under
The Court severs the direct-appeal EED claim and, as to that claim, grants in part the Secretary’s July 9, 2004, motion for a stay and holds that matter in abeyance pending further order of the Court.
It is so ordered.
VACATED AND REMANDED IN PART.
