James P. McKelvey v. Thomas K. Turnage, Administrator of Veterans' Affairs, and Veterans' AdministrationJames P. McKelvey v. Thomas K. Turnage, Administrator of Veterans' Affairs, and Veterans' Administration
Lead Opinion
Fеderal law provides honorably discharged veterans with certain educational assistance benefits, see
I
A
Thе G.I. Bill has for many years granted to each honorably discharged veteran certain educational assistance benefits which must be used in the ten years following the veteran’s last discharge or release from active duty. See
The VA regulations and interpretations which the VA applied in the present case are the same as those in effect when the 1977 provision was enacted. The regulations define “willful misconduct” in general as “an act involving cоnscious wrongdoing or known prohibited action____ It involves deliberate or intentional wrongdoing with knowledge of or wanton and reckless disregard of its probable consequences.”
(2) Alcoholism. The simple drinking of alcoholic beverage is not of itself willful misconduct. The deliberate drinking of a known poisonous substance or under conditions which would raise a presumption to that effect will be considered willful misconduct. If, in the drinking of a beverage to enjoy its intoxicating effects, intoxication results approximately [sic] and immediately in disability or death, the disability or death will be considered the result of the person’s willful misconduct. Organic diseases and disabilities which are a secondary result of the chronic use of alcohol as a beverage, whether out of compulsion or otherwise, will not be considered of willful misconduct origin.
B
McKelvey served on active duty with the United States Army from September 1963 to September 1966. In the nine-year period following his discharge, McKelvey was hospitalized repeatedly for alcoholism and associated problems. He has not had a drink since May 10, 1975.
In November of 1977, more than ten years after his discharge, McKelvey applied for educational assistance benefits, asserting that his alcoholism had prevented him from using the benefits earlier. The VA denied the application. On review before the Board of Veterans Appeals, McKelvey attempted to prove that his alcoholism was “secondary,” but the Board found “no evidence that an acquired psychiatric disease preceded [McKelvey’s] alcoholism.” In the Appeal of James P. McKelvey, No. 79-04 991, Findings and Decision at 6 (Aug. 6,1980) (“1980 Decision”). As the VA regulations required it to do in the absence of such evidence, the Board sustained the determination that McKelvey’s alcoholism was “willful” and that McKelvey was therefore not entitled to an extension.
McKelvey filed suit in the District Court for the District of Columbia, asserting that the willful misconduct regulation (
II
38 U.S.C. 211(a), in pertinent part, provides:
[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 and their dependents or 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 an action in the nature of mandamus or otherwise.
This court has not yet reached a definitive decision on the breadth of this no-review provision.
McKelvey did not make a Rehabilitation Act claim before the Board of Veterans Appeals; and it is not clear that the Board would have had authority to consider such a claim had he made it. We do not read38 U.S.C. § 211(a) to preclude judicial review of a point that the Veterans Administration never considered and, under existing regulations, probably had no authority to consider.
Brief for Appellants at 9-10 n. 1.
At oral argument this court, on its own motion, invited the parties to submit supplemental briefs on three questions: whether the VA had authority to consider the Rehabilitation Act claim; if it did, what was the impact of that Act on McKelvey’s time extension application; and whether
This “switched off, then on” interpretation of
Under the VA’s interpretation,
We are confident that Congress never envisioned such a gambit when it provided that veterans benefits claims should start and finish at the administrative level without coming to court at all.
We emphasize, however, the narrowness of our holding. We do not, for example, pass on whether
Ill
We can dispose of one of the government's points on appeal summarily. It was not until 1978 — one year after Congress enacted the extension of the ten-year
We have considerable difficulty, however, understanding why § 504 is by its terms applicable here. It provides as follows:
No otherwise qualified handicapped individual ... shall, solely by reason of his handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance or under any program or activity conducted by any Executive agency....
The essence of McKelvey’s § 504 claim, therefore, is disagreement with the VA’s conclusion that primary alcoholics— i.e., those alcoholics whose condition is not the result of an acquired psychiatric disease — suffer from a willfully caused handicap. It seems to us, however, that the agency’s conclusion is a reasonable one, which is all that is needed to sustain it.
The contrary conclusion of the District Court is based on several erroneous premises.
The District Court further objected that “[t]he Board’s interpretation of the regulation precluded it from considering relevant evidence which was causally related to [McKelvey’s] handicap.” McKelvey,
Finally, the District Court found that all alcoholics were discriminated against because those suffering from other handicaps “unlike alcoholics, are not required to prove the existence of a secondary disease in order to escape a finding of willful misconduct with respect to their primary condition.” McKelvey, 596 F.Supp. at 1324. That conclusion was based upon the District Court’s belief that, once primary alcoholism results in a secondary disability (e.g., cirrhosis), not only does the VA not consider the secondary disability to have been caused by “willful misconduct,” but it also reclassifies the primary alcoholism as secondary — i.e., not caused by willful misconduct. The latter part of this belief is simply wrong. Disabilities that result from primary alcoholism are not deemed a product of “willful misconduct,” but the alcoholism which caused them is. This is clear not only from the text of
It might be argued, however, that even if McKelvey has not been discriminated against in the application of substantive criteria, he has suffered “procedural” discrimination. Unlike those suffering from every other handicap (except drug addiction), alcoholics do not receive completely “individualized” consideration
******
The decision of the District Court is reversed and the case is remanded for consideration of McKelvеy’s constitutional claims.
So ordered.
Notes
. In Carter v. Cleland,
A divided panel of the Second Circuit, in a case involving the same Rehabilitation Act plea as the one presented here, held
. We note in passing that McKelvey’s claims assert discrimination between various categories of handicapped individuals (those who are granted the limitation extension and primary alcoholics, who are not) rather than between handicapped individuals and others. At least one other court of appeals has expressed "señous doubts whether Congress intended § 504 to provide plaintiffs with a claim for discrimination vis-a-vis other handicapped individuals." Colin K. v. Schmidt,
. As noted earlier, supra page 196, veterans benefit statutes authorizing death and disability compensation, disability pensions, and dependency and indemnity benefits preclude payment of such benefits when it is determined that the death or disabling injury or disease resulted from the veteran’s own "willful misconduct.” There is no basis for giving the term a different meaning in the limitation extension than in the other portions of the same statutory scheme. Even if legislative history might be thought capable of justifying such a strange result, the legislative history of the 1977 limitation extension makes it clear that in determining "willful misconduct” "the same standards [are to] be applied as are utilized in determining eligibility for other VA programs under title 38.” S.Rep. Nо. 468, 95th Cong., 1st Sess. 69-70 (1977).
The original regulations issued by HEW in implementing the Rehabilitation Act, see infra note 5, included the following provision,
. Only one federal court of appeals has considered the lawfulness of
. Shortly after enactment of § 504, the Secretary of the Department of Health, Education and Welfare — the agency charged by the President with responsibility for determining who are “handicapped individuals" within the meaning of
Concurrence Opinion
concurring in part and dissenting in part:
I agree, for the reasons stated in Section II of the per curiam opinion, that we have jurisdiction over this appeal; on the merits, I dissent from the majority’s position that the Rehabilitation Act does not invalidate the challenged application of the “willful misconduct” regulation. Section 504 of the Rehabilitation Act,
A. The Rehabilitation Act: Section 504 of the Rehabilitation Act provides in pertinent part: “No otherwise qualified handicapped individual ... shall, solely by reason of his handicap, ... be subjected to discrimination ... under any program or activity conducted by any Executive agency.” To establish discrimination under this
McKelvey has unproblematically established the elements designated (1) and (4) in the above enumeration. As to element (4), the VA regulatiоns themselves list the educational benefits program as one subject to Section 504, see
The dispute in this case involves the other two elements of Section 504. Concerning element (2), the VA argues that McKelvey is not “otherwise qualified” for the benefit program in question for, even if it is conceded that his alcoholism rendered him handicapped, he has nonetheless failed to meet the ten-year deadline for use of educational benefits. See Brief for Appellants at 17. This is bootstrap argument. McKelvey’s challenge targets precisely the discriminatory operation of the deadline itself. The VA cannot tenably argue that the deadline scheme escapes inspection for discrimination because McKelvey is not “otherwise qualified” by virtue of the very same deadline implementation he has placed at issue.
In Southeastern Community College v. Davis,
Plaintiff McKelvey satisfies these requirements. The government does not suggest that McKelvey in any way fails to meet an “academic [or] technical standard requisite to admission or participation.” The ten-year deadline plainly is not an academic standard, nor, according to the above-stated HEW definition, is it a technical one; indeed, it is not an admissions criterion at all, and it surely is not essential to McKelvey’s successful participation in the program.
The majority maintains, however, that this discrimination occurs on the basis of conduct, not handicap, and that therefore the VA’s view on what constitutes “willful misconduct” need only be reasonаble. See maj. op. at 200. Since the VA’s view is reasonable, see id. at 200-02, “it would insult common sense to require the agency to make it repetitiously, by consistently denying nonpsychiatric defenses in individual adjudications instead of precluding them generically, as it has, by rulemaking.” Id. at 203.
The majority nods in its conclusion that the discrimination contained in the “willful misconduct” regulation is based on conduct. As set out earlier, supra at 204, authoritative HEW guidelines, adopted by the VA itself, establish that alcoholism is a handicap. The VA’s discrimination in this case was based on McKelvey’s alcoholism. The VA’s decision therefore discriminated on the basis of handicap. The majority’s position would allow the VA to escape this syllogism by the simple expedient of redenominating alcoholism as conduct. Discrimination on the basis of alcoholism will therefore never be discrimination “solely” on the basis of handicap, because alcoholism is both conduct and a handicap. As a result, under the majority's analysis, the government can never discriminate on the basis of alcoholism unless it explicitly admits that it is discriminating against alcoholics solely because they are handicapped. This mode of analysis effectively nullifies Section 504 coverage of alcoholics.
Similarly, the government argues that the VA’s discrimination rests not “solely” on McKelvey’s handicap but also on the passage of the ten-year delimiting period. See Brief for Appellants at 17. This twice-made argument gains no force through repetition. It fails here for the reason that the same argument failed to prove McKelvey was not “otherwise qualified”: passage of the ten-year period forecloses McKelvey’s use of educational benefits only because the VA has created a time limit that discriminates against primary alcoholics. An agency may not promulgate a regulation that discriminates solely on the basis of handicap and then sensibly argue that because the regulation is an additional basis for the discrimination, the agency does not discriminate solely on the basis of handicap.
As already explained, supra at 204-05, the VA’s interpretation of the Rehabilitation Act is not persuasive. Nor need one indulge the VA's interpretation in order to “harmonize” the two acts, for there is no necessary conflict between the statutes. Unavoidable conflict arises only if one accepts the VA’s contention that
For the argument that
I do not read this passage, as the VA does, to codify the particular regulations cited in the Senate Report. If Congress had intended to import those specific provisions into the statute, one might have expected Congress simply to transfer to the legislation the very words appearing in the regulations. Instead of reading the Senate Report passage to indicate that Congress meant to freeze by statutory incorporation particular regulatory provisions, I think another interpretation more sensible: Congress, in 1977, envisioned only that the VA would use the “same standards” — whatever those standards might be as contained in the effective regulations at any given time — in granting extensions as in “determining eligibility for other VA programs.” The passage’s reference to particular regulations “[i]n this connection,” I therefore conclude, was intended not to indicate that Congress was codifying those regulations but only to point out as illustrative the standards used at that time in eligibility determinations. Thus, I believe we may and should grant McKelvey’s Rеhabilitation Act claim and invalidate the VA’s “willful misconduct” regulation pro tanto—
Congress apparently did alter its perspective in 1978 on whether the “same standards” should be used in granting extensions as in “determining eligibility for other YA programs.” The 1977 Committee Report, as quoted above, seems to be simply adverting to the general principle that like phrases should be read alike in the same statute absent contrary indications. As I will explain, see infra at 208-09, the specific operation of the Rehabilitation Act is such a contrary indication: Section 504 prohibits the VA from applying its definition of willful misconduct to educational benefit time limit extensions but not in other contexts, such as determining eligibility for disability compensation.
In a further attack on the conclusion that the Rehabilitation Act requires a modified reading of the “willful misconduct” regulation, the VA cites legislative “history” that postdates the Act. After the 1978 extension of thе Rehabilitation Act to the federal government, the Senate in 1979, 1981,1982, and 1984 passed bills which would have provided explicitly that alcoholism and drug addiction are not “willful misconduct” under
As the per curiam opinion recognizes, see maj. op. at 199-200, the legislative activity emphasized by the VA is not a secure base for judicial decision. The Supreme Court has often observed that “the views of a subsequent Congress form a hazardous basis for inferring the intent of an earlier one.” Consumer Product Safety Comm’n v. GTE Sylvania, Inc.,
I see no reason to accord the “subsequent legislative history” underscored by the VA any more weight than usual. I find no indication that Congress, in dealing with the Senate bills, ever even adverted to the question whether the Rehabilitation Act, as extended to federal programs in 1978, already required alteration of the VA standard. As the Sixth Circuit held on precisely this issue, “we should not read a later Congress’ attempt to abolish the willful misconduct standard as ‘proof’ that an earlier Congress had not already vitiated the willful misconduct standard, as applied by
Most forcibly, the VA and the majority argue that if the Rehabilitation Act invalidates the VA’s view that “willful misconduct” includes alcoholism in the context of time limits on еducational benefits, the Act must also invalidate the position that those same words include alcoholism for the purpose of limiting the availability of service-related disability compensation. See
I believe, however, that the Rehabilitation Act indeed does alter the VA’s definition for one purpose but not for the other. As the majority recognizes, see maj. op at 201 n. 3, the original regulations issued by HEW to implement the Act,
By contrast, the VA’s educational benefits program surely is not “a program limited by Federal statute to a [specific] class of handicapped persons.” Rather, it is a program open to all honorably discharged veterans. See
Unlike the majority’s position, my view of the statutory complex advances both the policies underlying the veterans disability compensation statute and those on which the Rehabilitation Act rests. The view I take of the various legislative parts does not require the VA to pay alcoholics compensation as long as they remain alcoholics, and thus does not create an unfortunate incentive for those individuals. But my reading of the Rehabilitation Act as it impacts on
Conclusion
The Board of Veterans Appeals itself observed in this case that it had “no doubt that if an extension were granted [McKelvey] would use the benefits wisely and become a more productive member of society.” In the Appeal of James P. McKelvey, Findings and Decision (Aug. 6,1980), J.A. at 34. I believe that Congress’ central goal in the Rehabilitation Act was precisely to free handicapped individuals from the kind of discrimination McKelvey encountered so that they could become more productive members of society.
By contrast, the VA’s exclusion of rehabilitated alcoholics from consideration for educational benefits time limit extensions, and the majority’s sufferance of the VA’s policy, annul the intended effect of the Rehabilitation Act. The majority would allow federal agencies simply to label a handicap as falling into some other category contained in the statute еntrusted to the particular agency’s administration — for example, “willful misconduct.” The agency need then demonstrate only that its view is “reasonable.” The majority thus entirely abandons the heightened sensitivity to the condition of handicapped persons required by the Rehabilitation Act in favor of the lax standard of rationality to which all agency actions must conform. Because I believe that this mode of analysis frustrates the broad remedial purpose of the Rehabilitation Act, I dissent.
. The only other federal court that has thus far addressed the issue agreed with the adjudication in our district court and in the Sixth Circuit, see Traynor v. Walters,
. The VA argues that its regulation does not presume willful misconduct but merely "focuses” the factfinder’s attention on "whether an underlying psychiatric disorder caused excessive drinking.” Brief for Appellants at 20. This "focus,” however, conclusively denies that alcoholic veterans who do not suffer from an acquired, classifiable psychiatric disordеr may be innocent of willful misconduct.
. The government’s appeal to Alexander v. Choate,
. Because this is not a case of unavoidable conflict, the VA’s observation that in cases of such conflict a more specific statute controls a more general one, see Brief for Appellants at 17, is irrelevant.
. The VA also reminds us that a "court may accord great weight to the longstanding interpretation placed on a statute by an agency charged with its administration,” especially when "Congress has re-enacted the statute without pertinent change." NLRB v. Bell Aerospace Co.,
. As authority for this argument, the VA relies primarily on a Senate report that accompanied one of the bills to amend
. The Supreme Court has described these regulations as "an important source of guidance on the meaning of section 504.” Alexander v. Choate,
Concurrence Opinion
concurring in part and dissenting in part:
While I am as eager as my colleagues are (and, evidently, as the Veterans’ Administration initially was) to avoid enmeshing this court once again in the issue of determining the proper scope of
Since, however, the majority of the court has determined otherwise, I have joined in the court’s consideration of the merits, and concur in Parts I and III of the opinion.