Beamon v. BrownBeamon v. Brown
Barbara C. Biddle (briefed), Department of Justice Appellate Staff, Civil Division, Sandra Wien Simon (argued and briefed), U.S. Department of Justice, Appellate Staff, Civil Division, Washington, DC, for Defendant-Appellee.
OPINION
KENNEDY, Circuit Judge.
Plaintiffs-Appellants, James Beamon, Charles Boyd, and Cecil Holbrook, on behalf of themselves and all other similarly situated persons, appeal the District Court‘s order granting the motion of defendant-appellee, Jesse Brown, in his official capacity as Secretary, United States Department of Veterans Affairs, to dismiss plaintiffs’ claims for lack of subject matter jurisdiction pursuant to
I. Facts
Plaintiffs, honorably discharged wartime veterans, have brought this action, on behalf of themselves and seeking to represent a class of similarly situated veterans, to challenge the manner in which the Department of Veterans Affairs (“VA“) processes claims for veterans’ benefits. Each of the plaintiffs has applied for benefits from the VA and has experienced delays in receiving final decisions. Mr. Beamon applied for benefits in 1989 and waited seven years before receiving a favorable decision granting him pension benefits. He received those benefits after the District Court dismissed plaintiffs’ claims, but at the time this appeal was filed he still had not received a final decision on his claim for service-related disability benefits. In 1988, Mr. Boyd filed a claim for refund of withheld funds. At the time this complaint was filed with the District Court in August of 1995, he had yet to receive a final decision from the VA. He subsequently received $8700 from the VA. At the time this appeal was filed, Boyd believed that he was owed $9000, not the $8700 he received, and was not sure whether he agreed with the amount of the VA‘s refund. Mr. Holbrook filed for service related disability benefits in 1992 and at the time this appeal was filed had not yet received a final decision from the VA.
Plaintiffs assert that the VA‘s procedures for processing claims cause unreasonable delays, thereby violating their rights under the Administrative Procedure Act (“APA“),
II. Discussion
A. Standard of Review
We review a district court ruling granting a motion to dismiss de novo. See, e.g., Hiser v. City of Bowling Green, 42 F.3d 382, 383 (6th Cir.1994), cert. denied, 514 U.S. 1120, 115 S.Ct. 1984, 131 L.Ed.2d 871 (1995); Friends of Crystal River v. United States Environmental Protection Agency, 35 F.3d 1073, 1077-78 (6th Cir.1994).
B. The APA Waiver of Sovereign Immunity
The doctrine of sovereign immunity removes subject matter jurisdiction in lawsuits against the United States unless the government has consented to suit. United Liberty Life Ins. Co. v. Ryan, 985 F.2d 1320, 1325 (6th Cir.1993) (citing United States v. Mitchell, 463 U.S. 206, 212, 103 S.Ct. 2961, 2965, 77 L.Ed.2d 580 (1983)). Such a waiver of sovereign immunity “‘must be clear, express, and unambiguous.‘” Id. (quoting Ohio v. United States Dep‘t of Energy, 904 F.2d 1058, 1059 (6th Cir.1990), rev‘d on other grounds, 503 U.S. 607, 112 S.Ct. 1627, 118 L.Ed.2d 255 (1992)). In this case, plaintiffs argue that the APA provides the necessary waiver of sovereign immunity.
Although the APA provides a broad waiver of sovereign immunity, codified at
C. The Court of Veterans Appeals as an Alternate Adequate Remedy
In 1988, Congress enacted the Veterans Judicial Review Act of 1988, Pub.L. No. 100-687, Tit. III, 102 Stat. 4105, 4113-4122 (codified in sections scattered in 38 U.S.C.) (“VJRA“), and established a multi-tiered framework for the adjudication of claims regarding veterans benefits. The process begins when a claimant files for benefits with a regional office of the Department of Veterans Affairs. The regional office of the VA “shall decide all questions of law and fact necessary to a decision by the Secretary under a law that affects the provision of benefits by the Secretary to veterans.”
The District Court concluded that this system of judicial review provides plaintiffs with an alternate adequate remedy. The court specifically found that Congress gave the CVA two sources of power with which it can remedy claims of unreasonable administrative delay or inaction. First, the All Writs Act empowers “[t]he Supreme Court and all courts established by Act of Congress to issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law.”
Plaintiffs argue that Bowen v. Massachusetts, 487 U.S. 879, 108 S.Ct. 2722, 101 L.Ed.2d 749 (1988), supports their assertion that as a court of limited jurisdiction the CVA would be unable to provide an adequate remedy. In Bowen, the Supreme Court held that the Federal Court of Claims, with only the power to award monetary relief, was an inadequate forum for the resolution of disputes surrounding “the rather complex ongoing relationship between” the Commonwealth of Massachusetts and the United States Department of Health and Human Services. 487 U.S. at 905, 108 S.Ct. at 2738. The Court decided that the Court of Claims lacked the “general equitable powers” necessary to provide an adequate remedy in that case. Id. Contrary to plaintiffs’ assertion, the Bowen decision does not “show[ ] strong hostility to arguments that courts other than Article III district courts, with their broad equitable powers, can provide adequate remedies for § 704 purposes.” Plaintiffs-Appellants Brief at 16. Bowen merely stands for the proposition that sometimes Article I courts will not be vested with the powers necessary to provide adequate relief in the judicial review of agency action. If the administrative review process lacks “the kind of special and adequate review procedure” required to provide adequate relief, sovereign immunity is not waived under the APA. 487 U.S. at 904, 108 S.Ct. at 2737.
In the present case, however, the CVA has the power to provide adequate relief for the plaintiffs. As the District Court concluded, the CVA can “compel action of the Secretary unlawfully withheld or unreasonably delayed,”
The CVA itself has recognized repeatedly that § 7621(a)(2) and the All Writs Act provide it with the authority to issue orders compelling the VA to act and to issue extraordinary writs when it appears that agency inaction would frustrate its appellate jurisdiction. See, e.g., Friscia v. Brown, 8 Vet.App. 90, 91 (1995); Ebert v. Brown, 4 Vet.App. 434, 437 (1993); Erspamer v. Derwinski, 1 Vet.App. 3, 7-8 (1990).
Plaintiffs contend that their claims are different because they seek constitutional review of agency procedures and wish to group their claims in a class action. Thus, they argue, merely compelling the VA to issue a final decision on individual benefits would not provide an adequate remedy. Contrary to plaintiffs’ arguments, there is no reason to believe that this system cannot provide for the adequate adjudication of their constitutional challenges to the process by which the VA decides its benefits decisions. The CVA has the power of mandamus with which it can remedy individuals’ claims alleging delay, and there is no reason why the CVA could not consider challenges to VA procedures during the adjudication of individual claims contesting delayed benefits decisions.
Existing case law supports our conclusion that the CVA can provide plaintiffs with an adequate remedy. In Dacoron v. Brown, 4 Vet.App. 115 (1993), for example, while declining to issue a writ, the CVA acknowledged and described its capacity to review constitutional challenges:
Claims come to this Court on appeal from determinations of the BVA for the VA Secretary ... under laws pertaining to the provision of benefits by the VA Secretary. Therefore, constitutional challenges will ordinarily be presented to this Court only in the context of a proper and timely appeal taken from such decision made by the VA Secretary through the BVA. Although this Court also has authority to reach constitutional issues in considering extraordinary writs under
28 U.S.C. § 1651(a) , the Court may ... exercise such authority only when the claimant has demonstrated that he or she has no adequate alternative means of obtaining the relief sought and is clearly and indisputably entitled to such relief.
It is true that the VJRA system does not allow the CVA to review veterans’ claims asserted as class actions. Lefkowitz v. Derwinski, 1 Vet.App. 439, 440 (1991). Plaintiffs, however, seem to misunderstand the nature of the class action device. The class action, a tool for the aggregation of claims, is merely “a convenient procedural device” that helps “reduce or eliminate a multiplicity of suits.” 3B JAMES WM. MOORE ET AL., MOORE‘S FEDERAL PRACTICE p 23.02 (2d ed.1980). Although the Federal Rules of Civil Procedure make class actions available to some plaintiffs in United States district courts, the rules themselves do not confer those courts with jurisdiction over claims that they could not hear if brought individually. See
D. Preclusion of Judicial Review under 38 U.S.C. § 511
The District Court considered, but did not decide, whether the VJRA actually precludes federal district court jurisdiction over plaintiffs’ claims. Under
The text of
(a) The Secretary shall decide all questions of law and fact necessary to a decision by the Secretary under a law that affects the provision of benefits by the Secretary to veterans or the dependents or survivors veterans. Subject to subsection (b), the decision of the Secretary as to any such question shall be final and conclusive and may not be reviewed by any other official or by any court, whether by an action of mandamus or otherwise.
(b) The second sentence in subsection (a) does not apply to--
(1) matters subject to
section 502 of this title;(2) matters covered by
sections 1795 and1984 of this title;(3) matters arising under chapter 37 of this title; and
(4) matters covered by chapter 72 of this title.
Subject only to four exceptions, VJRA precludes judicial review of the Secretary‘s decisions. The fourth exception, “matters covered by chapter 72,” is relevant to the case at hand. Chapter 72 of the VJRA established the CVA, created its judicial review procedures, and defined its jurisdiction. Under
At least one district court has also recognized that the CVA has exclusive jurisdiction over claims alleging administrative delays by the VA. In Helfgott v. United States, 891 F.Supp. 327 (S.D.Miss.1994), the United States District Court for the Southern District of Mississippi decided that it lacked jurisdiction over a veteran‘s challenge to a VA decision to suspend issuance of all benefits until the validity of a particular regulation had been decided. The court determined that Congress had removed its jurisdiction over a challenge seeking to compel the VA to issue a benefit decision:
By lodging review of agency action, including ‘action of the Secretary unlawfully withheld or unreasonably delayed,’ (
§ 7261(a)(2) ) in the CVA, Congress has manifested a clear intent that the CVA exercise sole jurisdiction over review of all benefits determinations, including actions seeking to compel the VA to make a decision.
In addition, Congress explicitly granted the Court of Appeals for the Federal Circuit the “exclusive jurisdiction to review and decide any challenge to the validity of any statute or regulation or interpretation thereof brought under this section, and to interpret constitutional and statutory provisions, to the extent presented and necessary to a decision.”
[t]he Court of Appeals for the Federal Circuit shall decide all relevant questions of law, including interpreting constitutional and statutory provisions .... [and] ... shall hold unlawful any regulation or interpretation thereof (other than determination as to a factual matter) that was relied upon in the decision of the Court of Veterans Appeals that the Court of Appeals for the Federal Circuit finds to be ... contrary to constitutional right, power, privilege, or immunity.
The history of veterans’ benefits legislation reinforces our conclusion that Congress intended to vest the CVA with exclusive jurisdiction over constitutional challenges to VA decisions. Before it was amended in 1988,
In 1988, Congress established the CVA and vested it with authority to review VA decisions under laws relating to benefits claims, including the power to resolve constitutional issues, dramatically altering the statutory landscape. Legislative materials indicate that, in enacting the VJRA, Congress intended to create an opportunity for veterans to challenge VA benefits decisions, but also to assign exclusive jurisdiction over their claims to a centralized system comprised of the BVA, the newly established CVA, and the Federal Circuit. As House Report Number 100-963 explained, “[t]he Court of Veterans Appeals would have exclusive jurisdiction to consider all questions involving benefits under laws administered by the VA. This would include factual, legal, and constitutional questions.” H.R.Rep. No. 100-963 (1988), reprinted in 1988 U.S.C.C.A.N. 5782, 5786. The report also explained that in creating the CVA, Congress “intended to provide a more independent review by a body which is not bound by the Administrator‘s view of the law, and that will be more clearly perceived as one which has as its sole function deciding claims in accordance with the Constitution and laws of the United States.” Id. at 5808. Congress enacted the CVA to provide claimants with an avenue for the review of VA decisions that would otherwise have been unreviewable.
Since Congress established the CVA and enacted the revised
Plaintiffs argue that Czerkies v. United States Dept. of Labor, 73 F.3d 1435 (7th Cir.1996) indicates that Marozsan remains good law despite the creation of the CVA and its power to consider constitutional claims. In Czerkies, the Seventh Circuit considered whether a district court had jurisdiction to review a Department of Labor decision regarding employee benefits. In doing so, the court explained the scope of its decision in Marozsan:
We have talked on at such length about Marozsan because we take seriously our duty to stand by our precedents--a duty the proper discharge of which requires, of course, that we get clear the scope of the precedent. Marozsan establishes that door-closing statutes do not shut off nonmonetary constitutional claims.
73 F.3d at 1140. Thus, plaintiff misreads the scope of Marozsan. In that case, the Seventh Circuit allowed district court review of constitutional claims only because the statute would otherwise close the door to any judicial review. Because the VJRA has provided plaintiffs with a forum for the judicial review of their constitutional claims, the concerns motivating Marozsan no longer apply to decisions made by the VA. See also McCulley v. United States Dept. of Veterans Affairs, 851 F.Supp. 1271, 1282 (E.D.Wis.1994) (stating that in light of
In conclusion, we find that Congress intended to preclude district court jurisdiction over VA decisions relating to benefits claims, including decisions of constitutional issues. Plaintiffs here challenge the constitutionality of the procedures by which the Cleveland Regional Office of the VA and the BVA adjudicate claims for benefits. Whether these procedures cause unlawful or unconstitutional delays in the administration of veterans benefits are questions within the exclusive jurisdiction of the BVA, the CVA, and the Court of Appeals for the Federal Circuit. Thus, under
III. Conclusion
For the foregoing reasons, we AFFIRM the decision of the District Court.
Notes
A person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof. An action in a court of the United States seeking relief other than money damages and stating a claim that an agency or an officer or employee thereof acted or failed to act in an official capacity or under color of legal authority shall not be dismissed nor relief thereupon denied on the ground that it is against the United States or that the United States is an indispensable party. The United States may be named as a defendant in any such action, and a judgment or decree may be entered against the United States: Provided, That any mandatory or injunctive decree shall specify the Federal officer or officers (by name or by title), and their successors in office, personally responsible for compliance.
The Court of Appeals for the Federal Circuit shall decide all relevant questions of law, including interpreting constitutional and statutory provisions. The court shall hold unlawful any regulation or interpretation thereof (other than determination as to a factual matter) that was relied upon in the decision of the Court of Veterans Appeals that the Court of Appeals for the Federal Circuit finds to be--
(A) arbitrary, capricious, and abuse of discretion, or otherwise not in accordance with law;
(B) contrary to constitutional right, power, privilege, or immunity;
(C) in excess of statutory jurisdiction, authority, or limitations, or in violation of a statutory right; or
(D) without observance of procedure required by law.
[T]he decisions of the Administrator on any question of law or fact under any law administered by the Veterans’ Administration providing benefits for veterans or their survivors shall be final and conclusive and no other official or any court of the United States shall have power or jurisdiction to review any such decision by any action in the nature of mandamus or otherwise.
In Walters, the Supreme Court interpreted Robison as holding that “district courts have jurisdiction to entertain constitutional attacks on the operation of the claims system.” 473 U.S. at 311 n. 3, 105 S.Ct. at 3184 n. 3. Congress, however, subsequently established the CVA, effectively stripping district courts of any such jurisdiction.
In contrast, plaintiffs here point to no specific procedures that violate their constitutional rights. Plaintiffs’ bare allegations that VA procedures allow unreasonable delays appear closer to challenges to individual benefit decisions than a constitutional challenge to specific procedures. Plaintiffs have not alleged that even if these procedures operated more quickly, they still would violate their constitutional or statutory rights. The crux of their claim is simply that the system operates too slowly.
After being remanded to the district court, Marozsan later made its way back to a panel of the Seventh Circuit. The Seventh Circuit did not, however, consider how the changes to