James S. CHAMBERS, Plaintiff-Appellant, v. UNITED STATES, Defendant-Appellee.
No. 04-5134.
United States Court of Appeals, Federal Circuit.
Aug. 1, 2005.
Gregory T. Jaeger, Trial Attorney, Commercial Litigation Branch, Civil Division, United States Department of Justice, of Washington, DC, argued for defendant-appellee. With him on the brief were Peter D. Keisler, Assistant Attorney General, David M. Cohen, Director, and Franklin E. White, Jr., Assistant Director.
Before MICHEL, Chief Judge, MAYER and DYK, Circuit Judges.
Opinion for the court filed by Chief Judge MICHEL.
Dissenting opinion filed by Circuit Judge DYK.
MICHEL, Chief Judge.
James S. Chambers (“Chambers“) appeals the decision of the United States Court of Federal Claims granting judgment upon the administrative record in favor of the United States (“the government“). Chambers v. United States, No. 03-1767-C (Fed.Cl. July 12, 2004). The trial court upheld the decision оf the Army Board for Correction of Military Records (“ABCMR” or “Board“) denying Chambers’ request to reopen his 1970 honorable discharge from the military to assess whether he suffered from post traumatic stress disorder (“PTSD“) while on active duty such that he should have been retired for disability under
BACKGROUND
I.
Chambers enlisted in the U.S. Army in July 1967. Aftеr completing training in Fort Bliss, Texas, Chambers served in the Panama Canal Zone until he was reassigned to Vietnam as a light air defense artillery crewman in December 1969. He was promoted to the rank of sergeant (grade E-5) in March 1970.
Prior to his discharge from active duty in July 1970, Chambers was hospitalized three times. In June 1968, Chambers was hospitalized for back pain resulting from a car accident. At that time, he was also diagnosed with “transient stress reaction.” The attending psychiatrist, however, concluded that no follow-up treatment was necessary. In January 1969, Chambers was readmitted to the hospital for headaches and chest pain, diagnosed with “personality pattern disturbance, transient, situational,” and prescribed Valium. He returned to regular duty after eleven days in the hospital. In April 1970, approximately three months before Chambers’ discharge, Chambers reported to a military hospital complaining of an earache and nervousness. Upon referral to the Neurological Psychiatric Clinic, Chambers reported feeling agitated, short-tempered, and experiencing difficulty interacting with his fellow soldiers and superiors. Chambers was diagnosed with “mild situational anxiety” and prescribed Librium. He returned to regular duty the same day.
Chambers returned to Fort Lewis, Washington in July 1970 to complete his military obligation. At Fort Lewis, Chambers’ medical records were examined, and he received a separation physical exam, which revealed no physical or psychological abnormalities. Chambers was found medically qualified for separation and honorably discharged.
After separation from active duty, Chambers first sought medical assistance from the Veterans Administration (“VA“) in November 1972. At that time, he was diagnosed with acute bronchitis, but made no mention of PTSD-related symptoms. From 1982 to 1983, Chambers served in the New York Army National Guard.
Chambers was diagnosed with PTSD in February 1987, while in the Drug Rehabilitation Program at the VA Hospital in Montrose, New York. Chambers promptly filed a claim for VA disability benefits based on PTSD and received a 30 percent PTSD rating in July 1987. That rating
II.
In July 1999, Chambers applied to the ABCMR for disability retirement pay based upon his 1987 diagnosis of PTSD. Specifically, Chambers asked that the ABCMR reopen his discharge to reassess his mental condition and evaluate his entitlement to disability retirement or severance pay. Chambers argued that the Army improperly discharged him as physically and mentally qualified, despite his medical history. He further claimed that the discharge was illegal, because he did not receive counseling about his right to have a Medical Evaluation Board (“MEB“) review his fitness for duty or his right to waive MEB review.
The Board denied Chambers’ claim on March 16, 2000. The ABCMR first determined that under Army Regulation (“AR“) 635-40 in effect in 1970, only a soldier‘s commander, physician, or a Military Occupational Specialty/Medical Retention Board (“MMRB“) could request MEB review or refer a soldier to an MEB. Chambers thus had no right to request review by an MEB at the time of his separation. Accordingly, “[Chambers‘] rights were not violated by him not being counseled concerning his right to a[n] MEB or requirement to waive a[n] MEB before he could be separated.”
Moreover, the Board determined that the three medical incidents suffered by Chambers—all of them temporary in duration, medically treated, and followed by a return to full military duty—did not meet the requirements for reference to an MEB. The Board also noted that “[t]he medicines prescribed in these cases, Valium (5 mg twice a day) and Librium (10 mg three times a day for two weeks), are low concentrations according to the Board‘s medical doctor advisor.”
The ABCMR thus concluded that the physician administering Chambers’ physical correctly found no basis for referring Chambers to an MEB based upon his medical condition and medical records. First, the Board observed that Chambers was performing his military duties аt the time of separation and was thus presumed fit under the standards set by the U.S. Army Physical Disability Agency. Second, according to the 1970 version of
The Board declined to reconsider Chambers’ claim on September 27, 2000.
III.
On July 24, 2003, Chambers filed a complaint in the Court of Federal Claims, challenging the ABCMR decision as arbitrary and capricious. Chambers claimed, inter alia, he was entitled to a judgment awarding him “disability retirement pay from 22 April 1970 through 1 June 2003 at the rate of 50% of pay for enlisted grade E-5,” amounting to $344,000.00 plus costs.
On the parties’ cross-motions for judgment upon the administrative record, the trial court ruled in favor of the government. The Court of Federal Claims explained that despite its “arbitrary and capricious” standard of review for administrative decisions affecting military pay, “[e]ssentially, plaintiff asks this court to conduct a de novo review of the administrative record and find that the ABCMR impermissibly denied plaintiff‘s claim. This court, however, may not reweigh the evidence but may only ascertain
Chambers timely appealed to this court. We have jurisdiction over an appeal from a final decision of the Court of Federal Claims pursuant to
DISCUSSION
I.
We begin with subject matter jurisdiction. There is no dispute that Chambers filed this suit under the Tucker Act,
Claims under the Tucker Act are subject to the six-year statute of limitations in
This court recently held en banc that a claim for wrongful discharge accrues upon the service member‘s discharge rather than upon the final decision of the appropriate military corrections board. See Martinez, 333 F.3d 1295. In view of Martinez, we asked that the parties’ jurisdictional briefing address whether the same rule applies in retirement disability cases. We now hold that it does not.
In Martinez, the Court of Federal Claims dismissed the plaintiff‘s claim, filed more than six years after his separation from active duty, as time-barred under
[t]his court and the Court of Claims have frequently addressed and rejected the argument that the cause of action for unlawful discharge does not accrue until the service member seeks relief from a correction board and the correction board enters a final decision denying relief. The reasoning underlying that line of cases is that, since their creation, the correction boards have been regarded as a permissive administrative remedy and that an application to a correction board is therefore not a mandatory prerequisite to filing a Tucker Act suit challenging the discharge.
Id. at 1304 (citing, among other authorities, Friedman v. United States, 159 Ct.Cl. 1, 310 F.2d 381, 396 (1962)). We thus reasoned that Martinez‘s resort to the ABCMR was permissive rather than mandatory to bringing a Tucker Act suit for monetary relief. Id. at 1306-08. Accordingly, we held that Martinez‘s claim accrued not upon the Board‘s final decision, but upon his discharge. Id. at 1310.
Unlike claims for unlawful discharge, however, claims of entitlement to disability retirement pay generally do not accrue until the appropriate military board either finally denies such a claim оr refuses to hear it. See Real, 906 F.2d at 1560 (citing Friedman, 310 F.2d 381). The decision by the first statutorily authorized board that hears or refuses to hear the claim invokes the statute of limitations. Id. The difference between the two types of claims stems from their respective money-mandating statutes. In wrongful discharge cases brought under the Military Pay Act,
Disability retirement cases, however, are governed by
The principle of these cases is: first, jurisdiction is conferred by Congress, not on this court, but on retiring boards and the Secretaries of the thrеe armed services, to decide an officer‘s right to retirement for physical disability, and his consequent right to retired pay; second, it follows therefrom that we cannot acquire jurisdiction of such a claim until after the board and the Secretary have acted, or failed or refused to act, and not then unless the board and the Secretary acted arbitrarily or capriciously or contrary to law; third, since our jurisdiction could not be invoked until after the retiring board and the Secretary had act-
ed, the statute of limitations on a suit in this court did not begin to run until they had acted . . . .
Furlong v. United States, 138 Ct.Cl. 843, 152 F.Supp. 238, 240-41 (Ct.Cl.1957). In other words, the Court of Federal Claims has no jurisdiction оver disability retirement claims until a military board evaluates a service member‘s entitlement to such retirement in the first instance. Therefore, if at the time of discharge, the service member requested review by an appropriate board and the request was denied, or if the board heard the service member‘s claim and denied it, then the limitations period begins to run upon discharge. Real, 906 F.2d at 1560. But where the claimant “has not had or sought a Retiring Board,2 his claim does not accrue until final action by the Correction Board (which in that instance stands in the place of the Retiring Board as the proper tribunal to determine eligibility for disability retiremеnt).” Friedman, 310 F.2d at 396. Thus where the service member was released from service without a board hearing and subsequently files a claim for disability retirement before a military correction board, “the Correction Board becomes the first proper board to act (or to be asked to act) on the matter, and the claim does not ripen until that Board‘s action is final.” Id. at 392. The Correction Board proceeding “becomes a mandatory remedy; without it, the case in this court would be dismissed as premature on the ground that the plaintiff did not seek or obtain a final decision within the administrative hierarchy.” Id. (emphasis added).
Given the differences underlying claims for unlawful discharge and disability retirement, our holding in Martinez did not disturb the so-called “first competent bоard rule” of Friedman. Indeed, the government does not contend otherwise. The government instead argues that Chambers’ case falls into an exception to the Friedman rule addressed by this court in Real. This exception, according to the government, applies to cases where “the service member is aware of the prospect of disability retirement but does not obtain a decision entitling him to disability retirement from the appropriate board during service.” The government contends that as of 1987, Chambers knew he had PTSD and, based on his 30 percent disability rating from the VA, knew that his PTSD was service connected. At that time, the government argues, Chambers knew all of the facts supporting his disability retirement claim, yet failed to apply to the ABCMR until 1999, twelve years later.
We do not read Real as broadly as the government. In Real, the trial court dismissed the plaintiff‘s claim for disability benefits as time-barred, holding that his claim accrued upon discharge from the Navy in 1974, not upon the final decision of the Board for the Correction of Naval Records in 1987. The Court of Federal Claims concluded that, even though Real knew or should have known that he suffered from significant medical problems prior to discharge and understood that he would be ineligible for future disability benefits if he did not challenge the Navy‘s finding that he was fit for duty, he did not contest that determination and thus waived the right to further review. Real v. United States, 18 Cl.Ct. 118, 128 (Ct.Cl.1989).3
[w]hen the state of Real‘s knowledge of his condition is measured with regard to [statutory] requirements, it is highly questionable whether he should be found to have had either actual or constructive knowledge that he was entitled to disability benefits. There is no indication in the record before this court that Real could (let alone should) have known that he was suffering from a permanently disabling disorder in 1974.
Real thus concerned the service member‘s knowledge at the time of discharge, not, as here, many years after discharge. Real did not fashion a rule, as the government suggests, that a service member‘s claim accrues when hе learns of his disabling condition, whether before or after discharge. Indeed, such a rule would be untenable, given that a military board must determine eligibility for disability retirement before such a claim accrues. There can be no waiver of board review absent an opportunity for such review, as at discharge. Simply put, after discharge, a veteran has nothing to waive. The appropriate inquiry under Real, therefore, is whether at the time of his separation from the Army in 1970, Chambers knew that he was entitled to disability retirement due to a permanent disability that was not a result of his intentional misconduct and was service-connected. We hold that the record is bereft of any evidence that Chambers possessed such knowledge. The med-
We, therefore, follow the general rule in Friedman to hold that Chambers’ cause of action for disability retirement benefits in the Cоurt of Federal Claims did not accrue until the ABCMR, the first competent board, finally denied his claim in September 2000. Because Chambers filed his Tucker Act suit in 2003, within the six-year limitations period of
II.
We review a decision of the Court of Federal Claims granting or denying a motion for judgment on the administrative record without deference. McHenry v. United States, 367 F.3d 1370, 1377 (Fed. Cir. 2004). That is, we reapply the statutory review standards. Accordingly, we will not disturb the decision of the corrections board unless it is arbitrary, capricious, contrary to law, or unsupported by substantial evidenсe. Haselrig v. United States, 333 F.3d 1354, 1355 (Fed. Cir. 2003).
We agree with the Court of Federal Claims that the decision of the Board had substantial evidentiary support. As an initial matter, we note that the Army regulations in effect at the time of Chambers’ discharge in 1970, rather than current regulations, guide our analysis. At the time of discharge, and the pre-discharge medical examination, Chambers was effectively performing his military duties. As the Board correctly determined, therefore, under the standards set by the U.S. Army Physical Disability Agency, Chambers was presumed fit.
Moreover, we cannot say that the physician who examined Chambers prior to his separation from active duty erred in concluding, based on Chambеrs’ medical record and the governing Army regulations, that Chambers suffered no psychological abnormalities. After all, in 1970,
Chambers’ contention that the ABCMR wrongly relied on an undisclosed “off-the-record” opinion of a Medical Doctor Advisor has little merit. We note that it is unclear whether Chambers preserved this argument on appeal by raising it in his reconsideration papers before the ABCMR or the Court of Federal Claims. In any event, we see nothing nefarious in the Board‘s limited rеliance on the opinion of its own medical advisor, as it is permitted to do under the statute. See
CONCLUSION
For the foregoing reasons, the decision of the Court of Federal Claims is
AFFIRMED.
DYK, Circuit Judge, dissenting.
In Fisher v. United States, 402 F.3d 1167 (Fed. Cir. 2005), we recently held that military disability claims are justiciable.
The majority now holds that such claims do not acсrue until a correction board has rejected a disability claim (where the service member acquires knowledge of his disability after discharge). Thus, there is effectively no statute of limitations with respect to such claims.1 In my view the result reached here is inconsistent with our en banc decision in Martinez v. United States, 333 F.3d 1295, 1310 (Fed. Cir. 2003) (en banc), where we held that wrongful discharge claims accrue at the time of the service member‘s discharge and not when a correction board rejects the claim. I respectfully dissent from the majority‘s decision that the statute of limitations has not expired.
In my view, no theory supports the majority‘s conclusion.
First, the majority appears to rely on the fact that the Secretary has provided by regulation that disability determinations are to be made by a series of medical boards. Ante at 9. The pertinent provisions of the relevant Army regulation, AR 635-40 Physical Evaluation for Retention, Retirement, or Separation, require a commander to refer a soldier “unable to perform the duties of his or her office” to the responsible medical facility, which then refers the soldier to a Medical Evaluation Board, and then to a Physical Evaluation Board to determine whether the service member should be discharged for disability. AR 635-40 §§ 4-8, 4-9, 4-10, 4-13 & 4-17(a)(4). The ultimate decision to discharge the service member is finally carried out by the Personnel Command for the Secretary of the Army. Id. §§ 4-19(b), 4-22(g)(5) & 4-24. But there is no provision for convening a Physical Evaluation Board after the discharge of a member to address disability claims, and the statute
Second, we held in Martinez that the correction board is permissive only and not essential to the accrual of the cause of action, stating that “an application to a correction board is therefore not a mandatory prerequisite to filing a Tucker Act suit challenging the discharge.” 333 F.3d at 1304. If resort to a correction boаrd is permissive in discharge cases, it is permissive in disability cases, and cannot toll the limitations period. Under Martinez correction board exhaustion is not required. “A cause of action cognizable in a Tucker Act suit accrues as soon as all events have occurred that are necessary to enable the plaintiff to bring suit.” Id. at 1303.2
Third, the majority (correctly) notes that the 40-year-old decision in Friedman v. United States, 159 Ct.Cl. 1, 310 F.2d 381 (1962) held that a “judicial claim for disability retirement pay does not accrue on release from active duty but rather on final action of a board competent to pass upon eligibility for disability retirement (or upon refusal of a requеst for such a board).” Id. at 395-96. But in my view Friedman is not consistent with Martinez. It is true that we did not directly overrule Friedman in Martinez, and indeed cited that case in the majority opinion. Martinez, 333 F.3d at 1304. But the Martinez opinion cited Friedman for a proposition directly opposite to the majority‘s holding here. Martinez cited Friedman for the proposition that “[t]his court and the Court of Federal Claims have frequently addressed and rejected the argument that the cause of action for unlawful discharge does not accrue until the service member seeks relief from a correction board.” Id. (citing Friedman, 310 F.2d at 396). Under these circumstances Martinez can hardly be read as endorsing the majority‘s view of Friedman.
Fourth, the majority holds that the difference between the result here and the result in Martinez is justified by the statutory language of
Finally, the majority‘s holding today perpetuates a serious anomaly in our disability retirement jurisprudence. Under Real, if a service member has knowledge of his disability at the time of discharge and fails to demand a Physical Evaluation Board, he is deemed to have waived the right to board evаluation and the cause of action accrues immediately upon discharge. 906 F.2d at 1562. Under the majority‘s holding today, however, if that same service member acquires knowledge of his disability the day after discharge, he must resort to a correction board, and the cause of action does not accrue until after a correction board has ruled.
Of course, it would be unfair to hold that a service member who was unaware of a disability is nonetheless barred from suit by the passage of six years from the time of discharge. This problem is solved by the doctrine that “the accrual of a claim against the United States is suspended, for рurposes of
In summary, under the majority‘s holding, where the service member acquires knowledge of disability after discharge, there is effectively no Tucker Act statute of limitations. The majority‘s holding opens the door to stale claims that are decades old. I respectfully dissent from the majority‘s holding as to the statute of limitations.
