Michael W. Canady v. R. James NicholsonMichael W. Canady v. R. James Nicholson
Lead Opinion
Veteran Michael W. Canady appeals pro se from two July 31, 2002, Board of Veterans’ Appeals (Board) decisions. In the first decision (Decision 1), the Board denied an effective date earlier than April 20, 1993, for the award of service connection for post-traumatic stress disorder (PTSD) and for a total disability rating based on individual unemployability (TDIU). Record (R.) at 1-11. In the second decision (Decision 2), the Board dismissed, without prejudice to refiling, a request for revision on the basis of numerous assertions of clear and unmistakable error (CUE) in the Board’s April 1991 decision denying service connection for PTSD. R. at 13-30. On November 29, 2002, and again on May 14, 2003, Mr. Canady filed requests for reconsideration as to both decisions with the Board Chairman. Both requests were denied, on March 14, 2003, and September 5, 2003, respectively. On April 26, 2005, a single judge of the Court issued a decision affirming Decision 1 and dismissing the appeal as to Decision 2 for lack of jurisdiction. On June 20, 2005, the Court granted Mr. Canady’s motion for a panel decision and withdrew the single-judge decision. On September 7, 2006, the Court issued an opinion in this matter. The Court will withdraw that opinion and issue this opinion in its stead. For the reasons set forth below, Decision 1 will be affirmed and Decision 2 will be set aside and the matter remanded for adjudication.
I. BACKGROUND
Mr. Canady served on active duty in the U.S. Army from September 1966 to August 1968, including service in Vietnam. R. at 32. In July 1988, he sought VA benefits for “delayed stress syndrome— Vietnam.” R. at 106-09. In connection with that claim, Mr. Canady underwent a VA examination in September 1988, and
In April 1993, Mr. Canady filed a claim for VA benefits for, inter alia, “nerves” and “stress.” R. at 218-21. After subsequent development and an initial denial of his claim (R. at 300-02, 354-56, 421-23, 433-35, 440, 454-59, 479-80), in July 1996 the RO granted Mr. Canady’s claim, awarded service connection for PTSD, and assigned a 30% disability rating effective from February 1994 (R. at 490-95). Mr. Canady disagreed with the assigned rating and, in June 1997, he was assigned a 70% rating for his PTSD and was granted TDIU, both effective from February 1994. R. at 497, 1041-45. Mr. Canady continued to disagree with the effective date assigned and sought an effective date of July 1988, the date of his initial claim. R. at 1047.
In an April 1998 decision following a personal hearing, a VA hearing officer granted an earlier effective date of April 1993 for Mr. Canady’s award of service connection for PTSD and the assignment of a TDIU rating. R. at 1096-98. In July 1998, Mr. Canady expressed his continued disagreement with the effective date assigned. R. at 1108-10. In November 1999, Mr. Canady also filed a request for revision on the basis of CUE in the April 1991 Board decision. R. at 1135-45. In May 2000, the Board issued two separate decisions: in the first decision, the Board denied an effective date earlier than April 1993 for the award of service connection for PTSD and for a TDIU rating (R. at 1164-73) and, in the second decision, the Board determined that the April 1991 Board decision denying service connection for PTSD was not the product of CUE (R. at 1148-60). On appeal, the Court granted the Secretary’s motion to remand both matters. R. at 1176-81, 1184.
On remand, the Board issued the decisions on appeal. R. at 1-30. With regard to the effective date for Mr. Canady’s award of service connection for PTSD, the Board in Decision 1 stated the following:
The threshold issue is whether the veteran submitted a claim for PTSD between April 30, 1991 (the date of the Board decision) and April 20, 1993 (the current effective date), upon which an earlier effective date could be established. Normally, once a veteran files a claim, the claim remains open and pending until final action is taken by the RO....
After a review of the claims file, the Board finds that the only written communication received from the veteran in the period between the Board decision of April 30, 1991, and the VA Form 21-526, which was received on April 20, 1993, was the copy of the June 1991 Power of Attorney and Fee Agreement document between the veteran and his*397 then attorney. However, no specific mention was made regarding the veteran’s PTSD claim. Accordingly, this document does not constitute a formal or informal claim for benefits.
E. at 8-9 (citations omitted). The Board further discussed the medical treatment records in the file for the period from April 1991 to April 1993 and concluded that the records showed “no treatment for PTSD during that period,” and that Mr. Canady “did not indicate his intent to seek service connection for PTSD during [that] period.” R. at 9. It also concluded that there was no legal basis for the assignment of an earlier effective date for Mr. Canady’s award of service connection for PTSD. R. at 9. In addition, with regard to the effective date for the assignment of a TDIU rating, the Board noted that PTSD was Mr. Canady’s only service-connected disability and concluded that, because a TDIU rating is warranted only “when the veteran is unemployable by reason of a service-connected disability,” the Board could not grant an effective date for the TDIU rating that was earlier than the effective date for his award of service connection for PTSD. R. at 9.
With regard to Mr. Canady’s request for revision on the basis of numerous CUE assertions in the April 1991 decision, the Board in Decision 2 concluded that “the allegations advanced in the motion do not set forth clearly and specifically the alleged clear and unmistakable errors of fact or law in the Board decision, including how the result of the April 1991 Board decision would have been manifestly different but for the error[s]” and, on that basis, the Board dismissed the request for revision without prejudice to refiling. R. at 30.
On appeal to the Court, Mr. Canady argues that he is entitled to an earlier effective date for his award of service connection for PTSD and for the assignment of a TDIU rating, and that the Board erred by dismissing his request for revision. See, e.g., Appellant’s Brief (Br.) at 4-9, 15-19, 21. The Secretary argues that there is a plausible basis in the record for the Board’s determinations regarding the effective date for Mr. Canady’s award of service connection for PTSD and his TDIU rating. Secretary’s Br. at 11-13. In that regard, he contends that the effective date was properly based on the date of Mr. Canady’s April 1993 reopened claim. Id. at 12. The Secretary further asserts that the Board did not err in dismissing, without prejudice to refiling, Mr. Canady’s request for revision. Id. at 13-18. Finally, in response to the Court’s request for supplemental briefing, the Secretary asserts that the Court “may” have jurisdiction to review the dismissal of a request for revision under § 20.1404(b) “for the limited and sole purpose of deciding whether the motion was pled with the required level of specificity such that it should be addressed by the Board on the merits.” Secretary’s Response to Court Order Dated June 28, 2005, at 3-4.
II. ANALYSIS
A. Decision 1-Effective Date
A Board determination of the proper effective date is a finding of fact that the Court reviews under the “clearly erroneous” standard set forth in 38 U.S.C. § 7261(a)(4). See Evans v. West,
It is undisputed that Mr. Cana-dy’s original claim for service connection for PTSD was denied in the April 1991 Board decision. R. at 198-202. Mr. Canady did not appeal that decision and it therefore became final. See 38 U.S.C. § 7105(a)-(c) (where an appeal is not initiated by filing of a Notice of Disagreement within one year after an RO decision, “the action or determination shall become final”). As the Board found and the record on appeal reflects, Mr. Canady filed a claim to reopen in April 1993 and there was no written communication from Mr. Canady that could be construed as either a formal or informal claim to reopen his PTSD service-connection claim between the final April 1991 Board decision and the April 1993 claim to reopen. See 38 C.F.R. §§ 3.155 (2005) (informal claims, to include informal claims to reopen); 3.156 (2005) (claim to reopen previously adjudicated final claims); see also Sagainza v. Derwinski,
B. Decision 2-Clear and Unmistakable Error
With regard to the Board’s dismissal of Mr. Canady’s request for revision on the basis of CUE pursuant to 38 C.F.R. § 20.1404(b) without prejudice to refiling, this type of dismissal is designated as “not a final decision of the Board” by 38 C.F.R. § 20.1409(b). Inasmuch as the Court’s jurisdiction generally is over only “final” Board decisions,
1. Finality of a Board Dismissal
The Court’s jurisdiction is defined by Federal statute, and any regulatory enactment that purports to limit the Court’s jurisdiction is necessarily of no force or effect.
(a) Dismissals in General
The dismissal of an action, even when done without prejudice, is a final decision that is subject to appeal. This is because “denial of relief and dismissal of the case ended this suit as far as the District Court was concerned.” United States v. Wallace & Tiernan Co.,
(b) Board Dismissal of a Request for Revision Based on CUE
Pursuant to 38 C.F.R. § 20.1404(b) (2005), when a request for revision fails to comply with the pleading requirements, it “shall be dismissed without prejudice to refiling under [subpart O, 38 C.F.R. §§ 20.1400-1411].” Although the request for revision is dismissed without prejudice, it nevertheless is dismissed, and adjudication will begin again only upon the filing of a new request. There is no procedure for simply amending the request for revision and permitting the process to continue in the same proceeding. Thus, the dismissal of a request for revision has the same effect as a dismissal of an action without prejudice or dismissal of the complaint when amending action is not permitted such that the proceedings could continue.
Moreover, because each request for revision on the basis of CUE must be adjudicated as a separate and distinct request for revision, an original request for revision rejected by the Board for inadequate pleading would be foreclosed from further review if not appealable, because that request must be modified before it is refiled or it presumably would suffer another dismissal if refiled without modification. Inasmuch as only the modified request for revision would ultimately be decided by the Board, an appeal of that decision would not permit judicial review of the previously rejected request for revision. Thus, when a request for revision on the basis of CUE is dismissed by the Board for lack of specificity, it is indeed a final decision with regard to that request, thus leaving appellate review as the only remedy if such dismissal was in error.
In light of the above, we hold that a Board decision dismissing a request for revision without prejudice to refiling pursuant to § 20.1409(b) is a final decision of the Board for purposes of the Court’s jurisdiction.
2. The Board’s Dismissal
Although the Board correctly noted the requirement that a request for revision on the basis of CUE must be pled with specificity, to include why the outcome would have been manifestly different but for the alleged error, see Fugo v. Brown,
In conducting a sympathetic reading of a request for revision, the Board should view the claim in light of the fact that it is the assertion of CUE itself that requires specificity, because it is the adjudication of that assertion upon which res judicata ultimately will act. See Andre,
Moreover, although the Board cannot adjudicate a CUE theory that is wholly distinct from that which is presented, see Huston v. Principi,
In this case, the Board identified numerous assertions of CUE in the prior proceedings, but it dismissed all of them because Mr. Canady failed to set forth what the manifestly different outcome would have been but for each CUE. Because a sympathetic reading should be conducted by the Board in the first instance, we will not address all of the allegations of error. However, we note that for some of Mr. Canady’s asserted CUE theories, the manifestly changed outcome is arguably obvious from the context of his pleadings. For example, Mr. Canady’s original claim for disability compensation on the basis of service-connected PTSD was denied by the RO in July 1989 because the required diagnosis of PTSD had not been made (R. at 136), and Mr. Canady asserted that the Board in April 1991, in considering the appeal of the RO decision, failed to recognize that he had been diagnosed with PTSD in a September 1988 VA examination. Without deciding the merits of Mr. Canady’s contention, we note that the implied manifestly different outcome is the grant of an earlier effective date for the grant of service connection for Mr. Canady’s PTSD. On remand, the Board should identify those assertions of CUE, otherwise properly pled, for which a manifestly changed outcome can be inferred from the pleadings upon a sympathetic reading, and proceed to decide them on the merits.
Although the Board dismissed Mr. Ca-nady’s request for revision and all assertions of CUE without prejudice, we further note that its statement of reasons or bases appears to be written in support of a finding on the merits on some of the theories of CUE. Again, without addressing the merits of each allegation, we note as an example Mr. Canady’s assertion that there was CUE in the April 1991 Board decision because the Secretary failed to provide him, inter alia, with an adequate Statement of the Case (SOC) or an opportunity for a personal hearing. R. at 15. The Board expressly determined that the SOC was adequate in that it provided Mr. Canady with “the correct laws and regulations.” The Board further determined that Mr. Canady “specifically [indicated] that he did not desire a personal hearing.” R. at 15-16.
Additionally, the statement of reasons and bases indicates that the Board believed some assertions of CUE to be pro-eedurally defective for alleging error that amounted to a differing view of the weighing of the facts. Such an assertion, like an assertion that the Secretary did not comply with his duty to assist, cannot form the basis of a successful request for revision. See Szemraj,
For the reasons stated above, the decision of the Board will be set aside. See Simmons v. Principi
III. CONCLUSION
The Court’s September 7, 2006, opinion is withdrawn, and this opinion is issued in its stead. For the foregoing reasons, Decision 1 is AFFIRMED. As to Decision 2, the Board’s decision to dismiss Mr. Cana-dy’s request for revision for lack of specificity is SET ASIDE and the matter is REMANDED for further action and adjudication consistent with this opinion. The Court expects that the Board will provide expeditious treatment of the remanded matter. See 38 U.S.C. § 7112.
AFFIRMED as to Decision 1; SET ASIDE and REMANDED as to Decision 2.
Notes
. The Board has been granted original jurisdiction to adjudicate a request for revision of a Board decision based on CUE, see 38 U.S.C. § 7111, to correct obvious error, see 38 U.S.C. § 7103(c), and to review attorney fee agreements, see 38 U.S.C. § 5904(c)(2). See also Matthews v. Nicholson,
. Although the Secretary's regulations do not prescribe the Court’s jurisdiction, they are otherwise binding on the Agency. See 38 U.S.C. § 7104(c) (Board bound by VA regulations); 38 C.F.R. § 20.101(a) (2005) (same).
. For example, when a district court determines that amending a complaint would be an exercise in futility but nonetheless dismisses the complaint without prejudice, see De'Lonta v. Angelone,
. Extraordinary relief generally is not an appropriate remedy for a Board dismissal based on inadequate pleading. See Bankers Life & Cas. Co. v. Holland,
Concurrence Opinion
concurring in part and dissenting in part:
I join in the majority’s opinion insofar as it affirms the effective date established by the Board in Decision 1. There is no reason to suggest that an effective date earlier than the date of the award of service connection is warranted here. As to Decision 2, however, I believe that the majority’s finding that this Court possesses jurisdiction over a Board’s dismissal of a CUE motion for inadequate pleading is contrary to the law applied by the majority of circuits and aggrandizes this Court’s jurisdiction at the expense of veterans. It is the particular province of the Board to determine pleading sufficiency, and the Secretary has decided that such determinations are not final appealable orders; this Court should give deference to the Secretary’s characterization of the Board’s actions. The majority, concerned by the improbable situation where the appellant elects to stand on the grounds of his dismissed motion or where the Board arbitrarily dismisses CUE motions, ensures that processing time for cases will be expanded while this Court deals, not with the merits of the appellant’s issues, but with the matter of pleading requirements. If this Court finds that the Board erred, the case still would need to be remanded to the
A. Finality of Dismissals Without Prejudice
In Federal appellate courts, generally, an order dismissing a complaint without prejudice is neither final nor appealable because the deficiency may be corrected by the plaintiff without affecting the cause of action. See Ciralsky v. CIA,
However, the majority determines that the Board’s dismissal of a request for revision based on CUE is a final decision for purposes of this Court’s jurisdiction. Ante at 401. In so concluding, the majority acknowledges that, when determining whether a dismissal without prejudice is final for the purpose of appeals, courts have recognized a difference between dismissals of complaints and dismissals of actions or dismissals of the case. See ante at 399-400. Nonetheless, the majority inexplicably determines that this case is analogous to a dismissal of an action. While the majority appropriately relies on the U.S. Supreme Court case United States v. Wallace & Tiernan Co.,
The majority suggests several reasons to support this conclusion. First, it finds persuasive that “there is no procedure for amending the request and permitting the process to continue” and that adjudication ends on dismissal of the request, reinitiat-ed by filing a new request. Ante at 400. This observation fails to recognize that when a complaint is dismissed without prejudice, generally, that dismissal too ends the adjudication until the case is rein-itiated by the filing of a new complaint. Next, the majority makes the circular argument that a Board decision dismissing a request for revision is final because that particular request must be modified or “it presumably would suffer another dismissal,” id.; however, it is axiomatic that a dismissal of a particular complaint, or any other pleading with leave to amend would be dismissed again if it was not modified. The majority further reasons that “only the modified request for revision would ultimately be decided by the Board, [and] an appeal of that decision would not permit judicial review of the previously rejected request for revision.” Id. Even so, if an appellant modifies and resubmits a motion that is adjudicated by the Board, then the initial motion would be of no moment; the appellant would receive an adjudication on the merits — one that could be appealed to this Court if the appellant disagreed with the outcome. As long as a subsequent motion was adjudicated on the merits, what need would an appellant have for review of a prior insufficiently pled motion? As shown below, the majority would be hard pressed to find any court that would consider a dismissal of a pleading “with leave to amend” a final decision of the lower court just because that particular pleading could not be resubmitted without suffering the same fate. Nonetheless, I do not believe that the procedure for amending the request or the mere fact that the appellant cannot repeatedly resubmit the same motion should govern the analysis in this case.
Guidance on treatment of dismissals without prejudice can be gleaned from Federal appellate courts whose review of underlying decisions is limited to “final decisions” of district courts. Compare 28 U.S.C. § 1291 (conferring jurisdiction over appeals from final decisions of district courts) with 38 U.S.C. §§ 7266(a) (mandating that a claimant seeking to appeal a decision to this Court must first obtain a “final decision of the Board”) and 7252(a). Like VA’s regulations governing pleading requirements for CUE motions, Federal courts have pleading requirements for complaints filed in their courts. Compare Fed.R.Civ.P. 8(a) (requiring a short and plain statement of jurisdiction, claim, and relief sought) with 38 C.F.R. § 20.1404(b) (requiring clear and specific allegations of the “errors[ ] of fact or law in the Board decision, the legal or factual basis for such allegations, and why the result would have been manifestly different but for the alleged error”).
The majority of Federal courts employ various reasons for the distinction between dismissals of complaints without prejudice and dismissals of actions without prejudice, the latter being a final, appealable decision. See De Tie,
Where there is a dismissal of a complaint, similar to a Board’s dismissal of a request for revision based on CUE, leave
Similarly compelling are the arguments presented by courts that determine that finality for appellate purposes is based on the effect that the dismissal has on the case. See Carr v. Grace,
Additionally, the U.S. Supreme Court determined that a decision is considered final for purposes of Federal appellate jurisdiction when the district court’s decision “ends the litigation on the merits and leaves nothing for the court to do but
The history of 38 C.F.R. § 20.1404 (2005) also provides guidance here. Previously, the law required that the Board deny as a matter of law insufficiently pled CUE requests. See 38 C.F.R. § 20.1404 (2000). After a denial, the appellant would be barred from pursuing that request further. See Disabled Am. Veterans v. Gober, 234 . F.3d 682, 704 (Fed.Cir.2000). When the regulation was revised, it ensured that if an appellant filed an insufficient CUE motion, that would not be the end of their request. In accordance with Disabled American Veterans, the Secretary amended § 20.1404 by requiring the Board to dismiss, rather than deny, requests that are inadequately plead “without prejudice to refiling.” 66 Fed.Reg. 35,902. The Federal Register reflects that, to conform to that change, § 20.1409(b) was amended “to provide that the dismissal without prejudice of a CUE motion is not a final decision of the Board.” 66 Fed.Reg. 35902; see 38 C.F.R. § 20.1409 (2005) (“[A] dismissal without prejudice under [38 C.F.R. § 20.1404(b)] ... is not a final decision of the Board.”).
Based on the foregoing, I believe that dismissals of motions for revision based on CUE more closely resemble dismissals of complaints than dismissals of actions. A dismissal based on inadequate pleading does not reach the merits of the issue, and by regulation, the Board dismissal must be without prejudice so as to permit the appellant the opportunity to amend the motion and refile. Additionally, a key consideration in the above cases is whether the district court believes its ruling ends the litigation. See Great Rivers, supra. That same question is critical here: Does the Board believe its ruling ends the litigation? In this case, and with all other motions for revision based on CUE, the Board retains jurisdiction, and an appellant may file an amended motion directly with the Board instead of receiving an adjudication from the RO first. See 38 U.S.C. § 7111(e) (noting that requests for revision based on CUE should be submitted directly to the Board). Moreover, here the Board order stated that the appellant failed to plead CUE with the requisite specificity, but then specifically contemplated further activity when it added that “[t]he veteran is thus free at any time to resubmit a CUE [request] with respect to the April 1991 Board decision.” R. at 30. Although the Board did not require repleading within a certain period of time, it left the door open for the appellant to refile with the Board a request for revision based on the same underlying facts at any time. See Berke,
The majority provides only a cursory reference to 38 C.F.R. § 20.1409, see ante at 398, which regulation seems, at least on its face, determinative of the issue here. That regulation provides that the Board’s dismissal without prejudice for failure to adequately plead a motion for revision based on CUE “is not a final decision of the Board.” 38 C.F.R. § 20.1409. The Secretary is expressly authorized to “prescribe all rules and regulations which are necessary or appropriate to carry out the laws administered by the Department and are consistent with those laws.” 38 U.S.C. § 501. Because substantial deference is given to the Secretary’s interpretation of a statute, his interpretation will not be set aside unless it is “arbitrary, capricious, or manifestly contrary to the statute.” Gallegos v. Principi,
C. Use of Petitions for Extraordinary Relief
Contrary to the majority’s conclusion, appellate review is not the only remedy for the erroneous dismissal of a request for revision. See ante at 400. In the unlikely event that the Board repeatedly dismissed a request for revision based on CUE and thereby abused its discretion, a petition for extraordinary relief is available. As a preliminary matter, the Board has no incentive to arbitrarily dismiss cases for lack of pleading specificity. This is particularly so in light of the Federal Circuit’s consistent mandate that the Board give a sympathetic reading to a pro se appellant’s pleadings. See Andrews v. Nicholson,
“Issuance of the writ is in large part a matter of discretion with the court to which the petition is addressed.” Kerr v. U.S. Dist. Court,
The majority’s opinion will expand this Court’s jurisdiction to review matters addressing not the merits of the appellant’s argument, but whether a CUE motion contains specific and clear allegations. Case-law from the majority of other circuits demonstrates that those courts refrain from addressing this type of matter to foreclose the possibility of piecemeal litigation. This decision has the potential to increase the time it will take for an appellant to receive a final judgment in his or her case. Even if this Court were to find that the Board erred and the appellant had plead with specificity, the Court could not adjudicate the claim; at most, it could remand the case back to the Board for the Board to address the issues in the first instance. Alternatively, if we were to affirm the Board’s holding, that determination has no preclusive effect; by statute, the appellant can always amend and refile the motion with the Board. See 38 U.S.C. § 7111(e). Because I believe the Court’s decision will only have the effect of expanding our caseload to include review of administrative matters and lengthening the time it takes for an appellant to receive a decision on the merits, I respectfully dissent.
. The Third and Ninth Circuit Courts of Appeal have adopted a rule of finality that finds a complaint dismissed without prejudice as nonfinal except in special circumstances, such as when the plaintiff cannot cure the defect that led to the dismissal or, a rule particular to those two circuits, the plaintiff elects to stand on the dismissed complaint. See, e.g., Welch,
. The concept of “Chevron deference” refers to the deference afforded to an agency regulation as announced in Chevron U.S.A., Inc. v. NRDC,