Donald MULDER, Appellant, v. Sloan D. GIBSON, Acting Secretary of Veterans Affairs, Appellee.
No. 12-1222
United States Court of Appeals for Veterans Claims
Argued April 23, 2014. Decided July 8, 2014.
27 Vet. App. 10
Bryan W. Thompson, Appellate Attorney, with whom Will A. Gunn, General Counsel; R. Randall Campbell, Assistant General Counsel; and Nisha C. Hall, Deputy Assistant General Counsel; all of Washington, D.C., were on the brief for the appellee.
Before HAGEL, MOORMAN, and BARTLEY, Judges.
HAGEL, Judge:
Donald L. Mulder appeals through counsel a March 27, 2012, Board of Veterans Appeals (Board) decision that found that a reduction of VA disability compensation payments due to incarceration for conviction of a felony pursuant to
On January 15, 2014, this appeal was assigned to a panel of the Court, which heard oral argument on April 23, 2014. The precise question before the panel is whether the Board erred in concluding that the proper effective date for the reduction of disability compensation payments for a veteran who has been incarcerated for conviction of a felony for over 60 days begins at the date of conviction rather than the date of sentencing pursuant to
I. FACTS
Mr. Mulder served on active duty in the U.S. Army from April to December 1982, from October 1992 to April 1993, and November 1993 to November 1994. Record (R.) at 172.
In April 1998, a VA regional office awarded Mr. Mulder a 50% combined disability rating for multiple service-connected conditions, including a back disability rated 40% disabling. R. at 490. That decision became final.
In May 2006, Mr. Mulder‘s former spouse notified VA that Mr. Mulder was incarcerated. R. at 321-22. In February 2007, VA received confirmation of this fact from Racine Correctional Facility in Racine, Wisconsin. R. at 318-20. In June
In July 2007, VA sent Mr. Mulder a proposed rating reduction that notified him that his benefit payments would be reduced on the 61st day after incarceration for conviction of a felony, pursuant to
In August 2009, Mr. Mulder submitted copies of his Judgment of Conviction from the Wisconsin Circuit Court that lists the date May 19, 2006, under the heading “Date(s) convicted.” R. at 57.
In March 2012, the Board issued the decision on appeal finding that, among other things, the reduction of Mr. Mulder‘s VA benefits payments effective July 19, 2006, was proper. The Board explained that “[p]ertinent court records list [Mr. Mulder‘s] conviction date as May 19, 2006.” R. at 13. The Board acknowledged that Mr. Mulder‘s sentence had been vacated and modified, but found that “the conviction itself has not been overturned or vacated[,] and [he] remains incarcerated.” Id. This appeal followed.
II. PARTIES’ ARGUMENTS
Mr. Mulder raises four arguments on appeal. First, he argues that the Board misinterpreted
The Secretary disputes these assertions and argues that the Board properly applied
III. ANALYSIS
A. Effective Date for Reduced Compensation Payments
First, Mr. Mulder argues that the Board misinterpreted
Section 5313 provides that
any person who is entitled to compensation . . . and who is incarcerated in a Federal, State, local, or other penal institution or correctional facility for a period in excess of [60] days for conviction of a felony shall not be paid such compensation . . . for the period beginning on the [61st] day of such incarceration and ending on the day such incarceration ends.
Mr. Mulder‘s only dispute ultimately lies with the definition of “incarcerated . . . for conviction of a felony.” Although Mr.
The Secretary asserts that “incarceration after conviction, but before sentencing, for a felony triggers the 60-day period of full benefits payments described in Section 5313.” Secretary‘s Brief (Br.) at 21. The Court agrees with the Secretary.
1. Plain Meaning
First, a plain reading of the statutory and regulatory language compels the conclusion that incarceration following conviction, but prior to sentencing, triggers the 60-day period pursuant to section 5313 and
When reading section 5313(a)(1) as a whole, the plain language is clear that the 60-day calculation begins on the 1st day of incarceration for conviction of a felony. See Wilson v. Gibson, 753 F.3d 1363, 1368 (Fed. Cir. 2014) (holding that “[r]eduction of compensation benefits begins on the [61st] day of incarceration for a felony conviction.“). Neither the statute nor the corresponding regulation,
Moreover, to the extent that Mr. Mulder argues that the word “for” in the phrase “for conviction of a felony” requires a nexus between incarceration and conviction, that requirement is clearly satisfied here. At the time that Mr. Mulder pled “no contest” on May 19, 2006, he was “remanded into the custody of the Milwaukee County Sheriff‘s Department” (R. at 312)
Further, the fact that Mr. Mulder‘s pre-conviction incarceration was eventually converted to time served as part of his sentence, thereby decreasing the amount of time he would spend in jail post-conviction, is inapposite here. During his pre-trial confinement, Mr. Mulder was in receipt of his full benefits. The fact that the state of Wisconsin may have converted Mr. Mulder‘s pre-trial confinement to post-conviction credit towards his sentence has no bearing on Mr. Mulder‘s VA benefits, as
2. Persuasiveness of the Secretary‘s Interpretation
To the extent that the phrase “incarcerated . . . for conviction of a felony” found in section 5313 and
Substantial deference to an agency‘s interpretation of an ambiguous regulation is not due, however, if the regulation in question merely parrots the statute. Gonzales v. Oregon, 546 U.S. 243, 257 (2006); Haas, 525 F.3d at 1186 (if deference were due to such interpretations, “an agency could bypass meaningful rule-making procedures by simply adopting an informal ‘interpretation’ of regulatory language taken directly from the statute in question“); see also Christensen v. Harris County, 529 U.S. 576, 588 (2000) (an agency cannot “under the guise
The Secretary interprets section 5313 and
the [61st] day for purposes of
38 U.S.C. § [ ]5313(a) . . . cannot occur until [61] days after a judge or jury has found an individual guilty of a crime and the individual has been imprisoned or incarcerated because of the determination of guilt. Thus, although a veteran may have been incarcerated prior to conviction[,] and although the period of incarceration prior to conviction may have been credited against the veteran‘s sentence, the [61st] day of incarceration should[,] for this purpose[,] be measured from the date all conditions precedent have occurred, including pronouncement of guilt by a judge or jury. However, once a veteran is imprisoned or incarcerated in a penal institution because of pronouncement of guilt for a requisite crime, the period of incarceration for purposes of [section 5313], would include any period of incarceration between the date of conviction and the date of sentencing.
VA Gen. Coun. Prec. 3-2005 (Feb. 23, 2005) (emphasis added).
The language “incarcerated . . . for conviction of a felony” found in
An agency interpretation through other than congressionally delegated authority is not entitled to deference under Chevron U.S.A. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 842-45 (1984). Sharp, 23 Vet. App. at 275. Rather, the extent to which the interpretation is entitled to respect “will depend upon the thoroughness evident in [the agency‘s] consideration, the validity of its reasoning, its consistency with earlier and later pronouncements, and all those factors which give it power to persuade.” Skidmore v. Swift & Co., 323 U.S. 134, 140 (1944); see also Gonzales, 546 U.S. at 256; Sharp, 23 Vet. App. at 275.
The Court concludes—to the extent that the statute can be read as ambiguous—that the Secretary‘s interpretation is persuasive and entitled to respect. The interpretation is presented with supporting rationale, has not been shown to be inconsistent with any other position taken by the Secretary on the issue, and, as discussed in Part III.A.1., is consistent with the plain language of the statute, in that the focus is on the date of conviction rather than the date the sentence is entered. See Skidmore, 323 U.S. at 140; see also Wanless v. Shinseki, 23 Vet. App. 143, 150-51 (2009) (holding that the VA general counsel opinion interpreting section 5313 was entitled to respect where the interpretation was accompanied by supporting rationale and was not inconsistent with previous VA positions); Sharp, 23 Vet. App. at 275 (rejecting VA interpretation of ambiguous language where the Secretary offered no support for his interpretation); Osman, 22 Vet. App. at 259-60 (rejecting VA General Counsel interpretation that was inconsistent with a prior interpretation).
Further, as to Mr. Mulder‘s argument that until he was sentenced he was not incarcerated for conviction of a felony because the Wisconsin bail statute did not require that he be incarcerated prior to sentencing, the Court finds persuasive the fact that neither section 5313 nor
Moreover, the Secretary‘s interpretation is also consistent with Congress‘s “main stated objective [in] the avoidance of duplicative Government expenditures that would result in a windfall for those convicted of felonies.” Wanless, 23 Vet. App. at 149. In other words, Congress and VA
The Secretary‘s interpretation in determining when benefits should be reduced upon incarceration is persuasive. See Skidmore, 323 U.S. at 140. Consequently, to the extent that the statute can be read as ambiguous, the Court concludes that the Secretary‘s interpretation is entitled to respect. See Wanless, 23 Vet. App. at 150-51.
B. Duties to Notify and Assist
Mr. Mulder raises a general assertion of error that VA failed to assist him in obtaining necessary records to adjudicate his claims. Specifically, he references July and September 2007 VA notice letters and contends that “VA never informed [him] that it believed that it would be unable to obtain the necessary records directly.” Appellant‘s Br. at 18. A review of the record reveals that the July and September 2007 VA notice letters both pertained to the reduction of VA compensation payments due to incarceration as well as Mr. Mulder‘s status as a fugitive felon.
To the extent that Mr. Mulder raises this argument with respect to the issue of his status as a fugitive felon, the Board made a favorable finding on appeal with respect to that matter and determined that Mr. Mulder‘s status as a “fugitive felon” for a period of time was improper. Accordingly, that matter is not currently before this Court. See Hibbard v. West, 13 Vet. App. 546, 549 (2000) (per curiam order) (stating that the Court‘s jurisdiction is statutorily limited to appeals of final Board decisions that are adverse to the claimant).
To the extent that Mr. Mulder raises this argument with respect to the issue of payment reduction as a result of incarceration, the Board explained that VA did not have a duty to assist him “because there is no dispute as to the relevant facts and the law is controlling.” R. at 5; see Dela Cruz v. Principi, 15 Vet. App. 143, 149 (2001) (explaining that the Veterans Claims Assistance Act is not applicable where law, not factual evidence, is dispositive); Smith, 14 Vet. App. at 231-32 (explaining that the Veterans Claims Assistance Act has no effect on an appeal limited to interpretation of law).
Here, as discussed at length above, section 5313 and
C. Reinstatement of Benefits
Mr. Mulder next argues that the Board “failed to comply with the duty to infer and adjudicate claims or issues reasonably raised by the record and/or failed to assist [him] in developing his claim for reinstatement of benefits.” Appellant‘s Br. at 24.
First, Mr. Mulder states that he informed VA that his conviction had been overturned and that a claim for reinstatement of his benefits was therefore reasonably raised. In support of his argument, he cites various documents in the record. A review of those records, however, reveals that he informed VA that his sentence had been vacated and modified, not that his conviction had been overturned. See R. at 26, 29, 46, 54, 68, 87-88, 208, 219, 231, 244, 291; see also Dixon v. Nicholson, 20 Vet. App. 544, 549 (2006) (“If a veteran‘s felony conviction is ‘overturned on appeal[,]’ VA must restore any withheld disability compensation benefits.” (quoting
Second, the Board acknowledged the modifications of Mr. Mulder‘s sentence and stated that, “although [his] sentence has been vacated on more than one occasion during the pendency of the claim . . ., the conviction itself has not been overturned or vacated[,] and [he] remains incarcerated.” R. at 13 (emphasis added). A review of the record does not reveal any evidence that Mr. Mulder‘s conviction date had changed or that he had been released from prison. Accordingly, the Board had no cause to consider whether reinstatement of benefits was warranted. See Robinson v. Shinseki, 557 F.3d 1355, 1361-62 (Fed. Cir. 2009) (holding that the Board is obligated to consider arguments or issues raised by the record, even if not raised by the claimant).
D. Overpayment
Finally, Mr. Mulder argues that “VA inappropriately asserts that any overpayment occurring as a result of its failure to timely implement its withholding obligation under [38 U.S.C. §] 5313 created a debt.” Appellant‘s Br. at 29. As noted in footnote 1 above, the issue of whether an overpayment of disability compensation benefits payments was properly created was remanded by the Board and is not before the Court at this time.6 See
IV. CONCLUSION
Upon consideration of the foregoing, that portion of the March 27, 2012, Board decision finding that the effective date of July 19, 2006, for the reduction of Mr. Mulder‘s disability compensation benefits payments due to incarceration, was proper is AFFIRMED.
