Dorothy M. Moffitt v. Eric K. ShinsekiDorothy M. Moffitt v. Eric K. Shinseki
Case Information
*1 Before HAGEL, MOORMAN, and GREENBERG, Judges .
HAGEL, Judge
: Dorothy M. Moffitt appeals through counsel a November 23, 2010, Board
of Veterans' Appeals (Board) decision that denied entitlement to enhanced dependency and
indemnity compensation under
During the pendency of Mrs. Moffitt's appeal, the United States Court of Appeals for the
Federal Circuit (Federal Circuit) issued a decision in
Kernea v. Shinseki
,
I. FACTS
Mrs. Moffitt's husband, veteran Douglas A. Moffitt, served on active duty in the U.S. Army from July 1944 to May 1946. R. at 3625. While serving in World War II, Mr. Moffitt was "wounded in action by a high explosive shell fragment." R. at 3860. Mr. Moffitt was discharged from service as a result of the injuries he sustained.
In July 1946, Mr. Moffitt filed a claim for VA disability benefits for numerous residuals of his in-service injury. That same month, a VA regional office awarded him a combined disability rating of 100% for those residuals. R. at 3620.
In a November 1956 rating decision, the regional office reduced Mr. Moffitt's benefits to a combined 60% disability rating, with additional special monthly compensation, effective March 1, 1953. R. at 3325-27. The regional office increased Mr. Moffitt's disability rating to 100% for the period between September 5, 1958, and December 29, 1958, and continued the 60% combined disability rating with additional special monthly compensation thereafter. R. at 3293.
In September 1979, Mr. Moffitt sought a total disability rating based on individual unemployability. R. at 3235-36. The regional office had not adjudicated that request before Mr. Moffitt died in November 1982.
In April 1983, Mrs. Moffitt sought death benefits, including dependency and indemnity compensation. In June 1991, the Board granted Mrs. Moffitt's claim.
In July 1999, Mrs. Moffitt filed a motion to revise a January 1980 rating decision that denied her husband's benefits for post-operative left inguinal hernia and phlebitis on the basis of clear and unmistakable error. R. at 429.
In August 1999, Mrs. Moffitt applied for enhanced dependency and indemnity compensation, asserting that her husband "should have been rated at [] 100% [disabled] for 10 or more years [prior to his death]." R. at 455. That same month, the regional office sent Mrs. Moffitt a letter advising her that it had received her claim for enhanced dependency and indemnity compensation benefits and stating:
Please be advised that a decision on the issue of entitlement to the enhanced [dependency and indemnity compensation benefits] has been deferred pending the completion of litigation in the case of Hix v. West . . . . As soon as we can, we will process your claim and let you know in writing of our decision. Unfortunately, we do not know how long it will take to complete the litigation; it may be several months. We cannot take any action on your claim until the litigation is completed.
R. at 453.
In August 2000, the regional office found that clear and unmistakable error was not present in the January 1980 rating decision that denied Mr. Moffitt benefits for post-operative left inguinal hernia and phlebitis. Mrs. Moffitt filed a Notice of Disagreement with that decision and ultimately appealed to the Board.
In May 2001, the Board found that there was no clear and unmistakable error in the January 1980 rating decision, and Mrs. Moffitt appealed to the Court. In May 2002, the Court granted the parties' joint motion for partial remand, in which the parties agreed that the Board failed to adjudicate Mrs. Moffitt's claim for enhanced dependency and indemnity compensation benefits. R. at 324. The Board thereafter remanded Mrs. Moffitt's claim for enhanced dependency and indemnity compensation to the regional office. In April 2004, the regional office denied Mrs. Moffitt's claim for enhanced dependency and indemnity compensation on the merits, and she again appealed to the Board.
In August 2008, the Board denied Mrs. Moffitt's claim for enhanced dependency and
indemnity compensation, finding that a December 2005 amendment to
In April 2010, the Court vacated and remanded the August 2008 Board decision, ordering
the Board to consider the three-part test in
Princess Cruises v. United States
,
In November 2010, the Board issued the decision on appeal, finding retroactive application of this regulation would not have an impermissible retroactive effect and that Mrs. Moffitt was not *4 entitled to enhanced dependency and indemnity compensation benefits under the law. This appeal followed.
In June 2013, the Court stayed proceedings of Mrs. Moffitt's appeal pending resolution of
an appeal then before the Federal Circuit that involved a similar issue. That case,
Kernea v. Shinseki
II. PARTIES' ARGUMENTS
Mrs. Moffitt raises one issue on appeal: that she is entitled to substantiate her claim for
enhanced dependency and indemnity compensation benefits under
The Secretary disputes this assertion and argues that the Board properly applied
III. ANALYSIS
A. History of Hypothetical Entitlement
able to "attempt to demonstrate that the veteran hypothetically would have been entitled to receive a different decision on a service-connection related issue," id. at 118, in effect providing de novo review of the veteran's claims when considering the surviving spouse's dependency and indemnity compensation claim.
In
Hix v. West
, the Court held that the "entitled to receive" language contained in
In December 2005, VA amended
Also in December 2005, VA promulgated
(3) Definition of "entitled to receive[.]" As used in paragraph (c) of this section, the phrase "entitled to receive" means that the veteran filed a claim for disability compensation during his or her lifetime and one of the following circumstances is satisfied:
(i) The veteran would have received total disability compensation for the period specified in paragraph (c) of this section but for clear and unmistakable error committed by VA in a decision on a claim filed during the veteran's lifetime; or
(ii) Additional evidence submitted to VA before or after the veteran's death, consisting solely of service department records that existed at the time of a prior VA decision but were not previously considered by VA, provides a basis for reopening a claim finally decided during the veteran's lifetime and for awarding a total service-connected disability rating retroactively in accordance with §§ 3.156(c) and 3.400(q)(2) of this part for the period specified in paragraph (c) of this section; or
(iii) At the time of death, the veteran had a service-connected disability that was continuously rated totally disabling by VA for the period specified in paragraph (c) of this section.
In 2007, the Federal Circuit, in
Nat'l Org. of Veterans' Advocates v. Sec'y of Veterans Affairs
Subsequently, in
Rodriguez v. Peake
,
In
Tarver,
the Federal Circuit focused on a precedential VA General Counsel decision, that
announced that it interpreted a similar statute, section 1318, as precluding survivors of veterans from
pursuing a claim for dependency and indemnity compensation benefits on the basis of hypothetical
entitlement.
See
VA Gen. Coun. Prec. 68-90 (July 18, 1990). The Federal Circuit highlighted the
history of VA's interpretation of the "entitled to receive" language contained in section 1318,
including the VA General Counsel opinion. It found persuasive that "beginning with the issuance
of the 1990 precedential opinion and through the various appeals to the Veterans Court . . . [VA's]
position [was] sufficiently consistent that it would not be unfair to charge [the appellant with] 'notice
of the Department's interpretation of the "entitled to receive" language.'"
Tarver
,
In , the Federal Circuit was again faced with the issue of the viability of hypothetical
entitlement as a permissible theory to establish a claim for benefits under
B. Princess Cruises Factors
At the outset, the Court notes that "[r]etroactivity is not favored by the law," and
"congressional enactments and administrative rules will not be construed to have retroactive effect
unless their language requires this result."
Bowen v. Georgetown Univ. Hosp.
,
1. Nature and Extent of Change in Law
First, the Court cannot conclude that the nature and extent of the change in the law is
substantial. Here, Mrs. Moffitt asserts that because she filed her claim in 1999, is
inapplicable and, as such, she should be able to substantiate her claim for benefits pursuant to
Although Mrs. Moffitt filed her claim in August 1999, before VA amended or promulgated
regulations barring the use of hypothetical entitlement as a permissible theory, the Court finds that
the timing of Mrs. Moffitt's claim is irrelevant to the first
Princess Cruises
factor.
See Tarver
Thus, on review of the pertinent case law, regulatory amendments, and 1990 VA General
Counsel opinion, the Court concludes that the Secretary has consistently disfavored hypothetical
entitlement and in fact amended and promulgated regulations to preclude the use of hypothetical
entitlement as a basis for substantiating benefits. Consequently, the Court concludes that the
December 2005 amendment to
2. Degree of Connection
The second factor is the degree of connection between the operation of the new rule and a
relevant past event. The Federal Circuit, in
Tarver
, noted that "[i]n determining whether the statute
or regulation at issue has a significant nexus to relevant past events [it] frequently look[s] to whether
the rule affects 'primary conduct,' i.e., the conduct that gave rise to the suit or claim at issue."
557 F.3d at 1375. In , the Federal Circuit noted that the relevant conduct "took place in the
1960s–decades before [section] 1311(a)(2) was even enacted–when [Ms. Kernea's] husband filed
his disability claims."
Similarly, here, the Court finds that this factor weighs in favor of permissible retroactivity.
The relevant conduct took place either in 1946 when Mr. Moffitt filed his initial claim for benefits
or 1979 when he filed his request for a total disability rating based on individual unemployability.
Again, if Mr. Moffitt had known that hypothetical entitlement might not be available, he might have
prosecuted his claims "more vigorously."
Id.
(internal quotation marks omitted). However, at the time
Mr. Moffitt filed his initial claim for benefits in 1946 and his request for a total disability rating
based on individual unemployability rating in 1979, Congress had not enacted
3. Notice, Reasonable Reliance, and Settled Expectations
Finally, the Court must consider "familiar considerations of fair notice, reasonable reliance,
and settled expectations."
Princess Cruises
,
Mrs. Moffitt's main contention is that her case is factually distinguishable from Kernea because she filed her claim in August 1999, prior to any public steps taken by VA to disallow hypothetical entitlement, whereas Ms. Kernea filed her claim in June 2003, after VA had already begun to take steps to disallow the use of hypothetical entitlement. Consequently, Mrs. Moffitt asserts that she may not be charged with notice that hypothetical entitlement may no longer be a permissible theory as she had reasonable reliance and the settled expectation that she may pursue her claim on the basis of hypothetical entitlement. The Court concludes that this distinction cannot be the sole basis for this Court to diverge from the Federal Circuit's decision in .
Here, as discussed at length above in relation to the first
Princess Cruises
factor, it should
have been apparent that when Mrs. Moffitt filed her claim in 1999, the hypothetical entitlement
theory may no longer be permitted for
C. Summary
Because the three
Princess Cruises
factors weigh in favor of permissible retroactivity, the
Court concludes that the amendment to
IV. CONCLUSION
Upon consideration of the foregoing, the November 23, 2010, Board decision is AFFIRMED.
Copies to:
Kenneth M. Carpenter, Esq.
VA General Counsel (027)
Notes
[1]