Guerra v. ShinsekiGuerra v. Shinseki
Lead Opinion
Opinion for the court filed by Circuit Judge BRYSON. Dissenting opinion filed by Circuit Judge GAJARSA.
This case requires us to construe one of the statutes providing benefits for disabled veterans. The issue on appeal is whether the Court of Appeals for Veterans Claims (“the Veterans Court”) correctly interpreted a statute that provides additional monthly compensation to certain severely disabled veterans. We hold that it did, and we affirm.
Pursuant to congressional direction, the Department of Veterans Affаirs (“DVA”) has promulgated a “disability ratings schedule” that it uses to determine the level of a veteran’s disability and thus the amount of the veteran’s monthly disability benefits. The ratings in the table are based on the agency’s assessment of the reduction in the average veteran’s earning capacity that results from various service-connected injuries, diseases, or conditions.
Some disabled veterans have multiple service-connected disabilities. To determine the veteran’s overall disability rating in such cases, the DVA rates each disabling condition individually (unless otherwise provided in the ratings schedule).
In addition to having a schedular rating of 100%, a veteran can also be rated as totally disabled, and thus entitled to benefits at the statutory level for total disability, if the veteran is unable to maintain gainful employment as a result of service-connected disability. In that case, even if
Some exceptionally disabled veterans who are rated as totally disabled are entitled to extra monthly compensation over and above the “total” rate provided in
I
Appellant Lionel Guerra served on active duty in the United States Marine Corps from 1966 to 1968 and suffered service-connected injuries. Most of his injuries resulted from a single combat incident. The regional office awarded Mr. Guerra a 70% rating for an upper-extremity gunshot wound, a 70% rating for post-traumatic stress disorder, a 40% rating for injuries to his left leg and thigh, a 40% rating for injuries to his right leg and thigh, and a 30% rating for neuropathy. None of his disabilities is individually rated at 100%, but his individually rated disabilities combine to a rating of 100%, i.e., total disability. His rating of total disability is not based on TDIU, however.
The Veterans Court held that Mr. Guerra did not meet the threshold requirement for special monthly compensation under subsection 1114(s) because none of his disabilities is independently rated as total. In construing the statute, the court followed its earlier decision in Bradley v. Peake, 22 VetApp. 280, 289-90 (2008), in which the court held that a veteran with a schedular rating of total disability must have a single disability rated at 100% in order to qualify for benefits under subsection 1114(s).
Mr. Guerra appeals, contending that benefits under subsection 1114(s) should be available to veterans who are rated as totally disabled, regardless of whether the veteran has a single disability rated at 100% or a combined rating of 100% based on multiple disabilities, no one of which is rated at 100%.
II
The relevant portion of subsection 1114(s) states that a vеteran is to receive special monthly compensation under the following conditions:
If the veteran has a service-connected disability rated as total, and
(1) has additional service-connected disability or disabilities independently ratable at 60 percent or more, or,
(2) by reason of such veteran’s service-connected disability or disabilities, is permanently housebound[.]
The statute requires “a service-connected disability rated as total.” The use of the term “a service-connected disability” suggests, as the Veterans Court held, that the veteran must have at least one disability that is rated at 100%. While the use of the singular is not by itself dispositive, the language of subsection 1114(s) and the other statutory compensation provisions supports the interpretation adopted by the Veterans Court.
Among the seven special monthly compensation provisions in
Even within subsection (s), the statute distinguishes between a single “disability” and multiple “disabilities.” To receive benefits at the subsection (s) rate, in addition to having “a service-connected disability rated as total,” the veteran must either be housebound by reason of the veteran’s service-connected disability or have “additional service-connected disability or disabilities independently ratable аt 60 percent or more.” Thus, the same sentence of the statute draws a distinction between a single disability and multiple disabilities. That distinction is a strong indication that Congress’s use of the singular and plural terms was purposeful and that the reference to “a service-connected disability rated as total” was meant to refer to a single disability with a 100% rating. Accordingly, the statutory text evidences Congress’s intent to limit the payment of special monthly compensation under subsection 1114(s) to a veteran who has at least one condition that has been rated as totally disabling.
While the language of subsection 1114(s) is not entirely free from ambiguity, we are compelled to defer to the DVA’s interpretation of subsection 1114(s), and we uphold the decision of the Veterans Court on that ground. By regulation, the DVA has interpreted subsection 1114(s) to provide that in order to qualify for benefits under that statute, the veteran must have a single disability rated at 100%. That interpretation is entitled to deferеnce under the principles of Chevron, U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
The DVA’s regulation corresponding to subsection 1114(s) was promulgated under
Mr. Guerra argues that the DVA has interpreted its own regulation to allow certain combined ratings to satisfy the definition of “single” and thus the statutory “total” standard. In making that argument, he relies on a reference to the TDIU rules that was previously contained in the DVA’s Adjudication Procedure Manual M21-1 (“Manual”) but was removed more than 15 years ago. The version of the Manual that was in effect between 1965 and 1995 directed the reader to the rules pertaining to TDIU for a definition of the term “single disability” for purposes of subsection 1114(s). The pertinent TDIU rule provided (as it still does) that, for purposes of TDIU determinations, “one disability” includes multiple disabilities resulting from a single accident and multiple disabilities affecting a single bodily system.
While acknowledging that the current version of the Manual does not support his position, Mr. Guerra argues that the deletion of the reference to the TDIU rules in 1995 constituted a “substantive rule” and that the agency was required to comply with the notice-and-comment rulemaking procedures of the Administrative Procedure Act (“APA”) before making that change in the Manual. Because the DVA did not follow those procedures, Mr. Guerra argues that the change in the Manual is inoperative and that we must defer to the agency’s pre-1995 construction of the term “single” in the statute and the corresponding regulation.
There is no force to Mr. Guerra’s contention, for two reasons. To begin with, the premise of Mr. Guerra’s argument— that the pre-1995 version of the Manual demonstrаtes that the DVA interpreted the phrase “a service-connected disability rated as total” as he does — is contrary to a more formal and explicit statement of the agency’s position in the form of a precedential opinion of the agency’s general counsel issued in 1991. In that opinion, the agency interpreted the statute and its own regulation to provide that the “threshold requirement for entitlement under
Moreover, neither the 1995 modification of the Manual nor the general counsel opinion that preceded it constituted or contained a substantive rule that was subject to the notice-and-comment requirements of the APA. A substantive rule represents an agency’s exercise of the power delegated to it by Congress to “effect a change in existing law or policy or ... affect individual rights and obligаtions.” Haas,
The dissent suggests that any ambiguity in subsection 1114(s) should be resolved in favor of the veteran instead of by reference to the DVA’s interpretation of a statute that it has been entrusted tо administer. In Sears v. Principi, however, we rejected the argument that the pro-veteran canon of construction overrides the deference due to the DVA’s reasonable interpretation of an ambiguous statute.
In sum, we conclude that subsection 1114(s) requires that a disabled veteran whose disability level is determined by the ratings schedule must hаve at least one disability that is rated at 100% in order to qualify for the special monthly compensation provided by that statute. Because no one of Mr. Guerra’s disabilities carries a disability rating of 100%, he is not eligible for that statutory benefit. We therefore affirm the decision of the Veterans Court.
No costs.
AFFIRMED
Notes
. The Veterans Court in Bradley held that a veteran with a TDIU rating could qualify for compensation at the subsection 1114(s) rate, but only if the TDIU rating was based on a single disability.
. Of course, the question whether a particular provision is substantive or interpretive for purposes of the APA is not resolved simply by the title of the document in which the provision is found. If an agency announces new substantive rules, those rules are subject to the procedural requirements of
Dissenting Opinion
dissenting.
The majority makes two errors in its analysis of
A review of
The key language in
Furthermore, the legislative history of
The majority also claims that
Contrary to the majority’s view,
if the veteran, as the result of service-connected disability, has suffered the anatomical loss or loss of use of one or more creative organs, or one foot, or one hand, or both buttocks, or blindness ofone eye, having only light perception, has suffered complete organic aphonia with constant inability to communicate by speech, or deafness of bоth ears, having absence of air and bone conduction, or, in the case of a woman veteran, has suffered the anatomical loss of 25 percent or more of tissue from a single breast or both breasts in combination (including loss by mastectomy or partial mastectomy) or has received radiation treatment of breast tissue, the rate of compensation therefor shall be $96 per month for each such loss or loss of use independent of any other compensation рrovided in subsections (a) through (j) or subsection (s) of this section....
The majority also claims that the distinction in
Therefore, based on the plain language of the statute, for a veteran to qualify for SMC under
In this сase, the Board determined that Mr. Guerra “has a combined 100 percent disability evaluation,” and he thus would qualify as having “a service-connected disability rated as total” for purposes of