Robert H. ARNESON, Appellant, v. Eric K. SHINSEKI, Secretary of Veterans Affairs, Appellee.
No. 09-0953.
United States Court of Appeals for Veterans Claims.
Argued Jan. 25, 2011. Decided April 20, 2011.
24 Vet. App. 379
Before KASOLD, Chief Judge, and LANCE and SCHOELEN, Judges. SCHOELEN, Judge.
Lastly, I understand that some might say that the interpretation that I express would place an unnecessary accounting burden on VA. The calculation that I believe the statute requires VA to make in these instances is, however, routinely made up front by private pharmacies when determining the profit margin sought on each drug dispensed to their customers. Thus, I do not believe that such a calculation places an unreasonable burden on VA. As a result, I do not believe that my interpretation of
Ronen Morris, with whom Will A. Gunn, General Counsel; R. Randall Campbell, Assistant General Counsel; and Carolyn F. Washington, Deputy Assistant General Counsel, all of Washington, D.C., were on the brief for the appellee.
Before KASOLD, Chief Judge, and LANCE and SCHOELEN, Judges.
SCHOELEN, Judge:
Veteran Robert H. Arneson appeals through counsel a November 20, 2008, Board of Veterans’ Appeals (Board) decision that denied service connection for bilateral plantar fasciitis and a bilateral knee disorder, both on a direct basis and as secondary to service-connected bilateral pes planus. Record of Proceedings (R.) at 3-19. Because the Court finds that the Board erred by failing to afford Mr. Arneson the opportunity for a personal hearing before all members of the Board panel that ultimately decided his case, the Court will vacate the Board‘s decision and remand the vacated matter for further proceedings consistent with this opinion.
I. BACKGROUND
Mr. Arneson served on active duty in the U.S. Navy from March 1970 to October 1971. R. at 471-72. He initially applied for benefits for foot and knee conditions in February 2005. R. at 248. His claims relating to bilateral pes planus, bilateral plantar fasciitis, and a bilateral knee disorder were denied in a September 2005 regional office (RO) rating decision (R. at 247-52), a February 2006 Statement of the Case (SOC) (R. at 207-23), and a June 2006 Supplemental SOC (R. at 178-82). Mr. Arneson appealed to the Board and requested a hearing. R. at 205-06. In September 2006, Board member Sabulsky conducted an in-person hearing, at which Mr. Arneson and his sister testified. R. at 136-46. In an October 2007 decision, Board member Sabulsky remanded Mr. Arneson‘s claims to obtain a medical opinion on the etiology of his conditions. R. at 98-102.
In January 2008, the RO granted service connection for bilateral pes planus, evalu
In October 2008, without notice to Mr. Arneson, the Chairman of the Board assigned a panel to decide his appeal. On November 20, 2008, the panel, consisting of Board members Sabulsky, Herman, and Sullivan, denied the appellant‘s claims for entitlement to service connection for bilateral plantar fasciitis and a bilateral knee disorder, both under direct service connection and as secondary to his service-connected pes planus. R. at 3-19. Although the Board found Mr. Arneson‘s and his sister‘s hearing testimony “credible,” the Board noted a 30-year lapse in time between service and the first treatment for Mr. Arneson‘s conditions, and ultimately gave greater weight to the medical opinions that found no nexus between his present disabilities and service or his service-connected pes planus. R. at 16-18.
II. THE PARTIES’ ARGUMENTS
The novel question before the Court is whether a claimant is entitled to the opportunity for a personal hearing in front of all Board members that ultimately decide his appeal. Mr. Arneson asserts that the Board violated statute, regulation, and his right to fair process by not affording him the opportunity for a personal hearing in front of all three Board members that would ultimately decide his appeal. First, he argues that he has a statutory right to a hearing before a Board member or all members of a Board panel, depending on whether his appeal is assigned to a single Board member or a panel. Appellant‘s Brief (Br.) at 9-13. Second, he contends that VA regulations compel the entire Board panel that is assigned to an appeal to conduct the hearing. Id.; Reply at 1-2. Third, he argues that fair process entitles him to a hearing in front of all the decisionmakers on his appeal. Id. He asserts prejudice because a personal hearing before Board member Sullivan could have swayed the Board‘s determination regarding the credibility of his continuity-of-symptoms argument. Appellant‘s Br. at 10-12.
At oral argument, the Secretary argued that no statute, regulation, or notion of fair process requires all members of a Board panel to conduct a Board hearing. He first noted that
Mr. Arneson also argues that the Board erred in (1) finding the duty to assist satisfied despite the absence of entrance and discharge medical reports from his service medical records; (2) finding that a June 2008 private medical opinion lacked probative value; (3) providing an inadequate statement of reasons or bases for denying his claim; and (4) failing to address the reasonably raised issue of service connection for Mr. Arneson‘s hallux valgus disability. Appellant‘s Br. at 13-21; Reply at 3-6. The Secretary refutes the first three arguments, but concedes that remand is warranted to enable the Board to consider the appellant‘s reasonably raised issue of entitlement to service connection for hallux valgus. Secretary‘s Br. at 4-16.
III. DISCUSSION
A. Purpose and Importance of the Board Hearing
Before the Board renders a decision in the veterans claims adjudication process, the claimant must be afforded an opportunity for a Board hearing.
The significance placed on a veteran‘s sworn testimony is further demonstrated by the standard under which the Court reviews the Board‘s assessment of a witness‘s credibility. Such credibility determinations are factual findings that the Court reviews under the “clearly erroneous” standard.
B. 38 U.S.C. §§ 7102, 7107
Before analyzing the pertinent statutes regarding Board hearings, we first acknowledge that Arneson v. Brown1, provides controlling precedent on the pre-1994 version of
Both parties argue that the pertinent statutes support their positions. The Court reviews VA‘s interpretation of statutes and regulations de novo. See Lane v. Principi, 339 F.3d 1331, 1339 (Fed. Cir. 2003) (“[I]nterpretation of a statute or regulation is a question of law....“); Butts v. Brown, 5 Vet.App. 532, 539 (1993) (en banc) (stating that the Court reviews “questions of law de novo without any deference to the [Board‘s] conclusions of law“). “‘Statutory interpretation begins with the language of the statute, the plain meaning of which we derive from its text and its structure.‘” Myore v. Nicholson, 489 F.3d 1207, 1211 (Fed. Cir. 2007) (quoting McEntee v. MSPB, 404 F.3d 1320, 1328 (Fed. Cir. 2005)). Statutory terms are interpreted “in their context and with a view to their place in the overall statutory scheme.” Tyler v. Cain, 533 U.S. 656, 662 (2001)
Before the 1994 amendments, the same statutory section that required all Board decisions to be rendered by three-member panels also provided that “formal recorded hearings shall be held by such member or members as the Chairman may designate, the member or members being of the section which will make final determination in the claim.”
The 1994 statutory amendments restructured this section and separated the provision regarding the assignment of Board members from the provision regarding hearings. Under the new statutory scheme,
At oral argument, the Secretary argued that the statute interpreted in Arneson remains in the statutory scheme, now at
The post-1994 language is not as clear. As noted above,
Because the post-1994 statutory language does not clearly state that a final Board decision can only be rendered by the member or members who conducted the hearing, it cannot be said that “Congress has directly spoken” to the question of whether a claimant is entitled to a hearing before all the Board members assigned to decide his appeal. Chevron, 467 U.S. at 842. “[I]f the statute is silent or ambiguous with respect to the specific issue, the question for the court is whether the agency‘s answer is based on a permissible construction of the statute.” Id. at 843. “If Congress has explicitly left a gap for the agency to fill, there is an express delegation of authority to the agency to elucidate a specific provision of the statute by regulation.” Id. at 844-45. Accordingly, we turn to the agency‘s implementing regulation to demonstrate VA‘s interpretation of the statutes pertaining to Board hearings.
C. 38 C.F.R. § 20.707
The Secretary has promulgated
At oral argument, the Secretary stated that it has been the Agency‘s practice to assign Board members to cases in piecemeal fashion, such that some are appointed after a hearing has been held. Based on this practice, the Secretary argues that only the Board member or members who are assigned to the appeal at the time of the hearing are required to conduct the hearing. Courts tend to accept an agency‘s interpretation of its own regulation unless it is “‘plainly erroneous or inconsistent with the regulation.‘” Auer v. Robbins, 519 U.S. 452, 461 (1997) (quoting Robertson v. Methow Valley Citizens Council, 490 U.S. 332, 359 (1989)). The Court cannot accept the Secretary‘s interpretation here.
As an initial matter, it is well established “that the unchallenged historical practice of the Secretary is not evidence that the practice is correct.” Tropf v. Nicholson, 20 Vet.App. 317, 321 n. 1 (2006) (citing Brown v. Gardner, 513 U.S. 115, 122 (1994)). The fact that the Chairman may assign Board members to a panel in piecemeal fashion cannot serve as a basis for the Secretary‘s
This interpretation makes no sense. The regulation does not state that Board members assigned to an appeal shall conduct a hearing if that hearing happens to be scheduled subsequent to their assignment. Nor does it state that a single member of a panel can conduct a hearing where a case has been assigned to be decided by a panel. Instead, the regulation states that the Board “Member or panel” assigned to an appeal “shall conduct any hearing before the Board in connection with that [appeal].”
Accordingly, we hold that the pertinent statutes and implementing regulation regarding Board hearings entitle a claimant to an opportunity for a hearing before all the Board members who will ultimately decide his appeal. If the claimant‘s appeal is assigned to a Board panel in a piecemeal fashion, that claimant must still be afforded the opportunity for a hearing before every member of the panel that will ultimately decide his case. This is not to say that the claimant must be afforded a hearing before every panel member at the same time; only that he be afforded the opportunity to be heard—be it in-person, telephonically, or via video conference—by every panel member who will decide his case.
D. Application of Law
Here, the Board assigned Board member Sullivan to adjudicate Mr. Arneson‘s appeal without affording Mr. Arneson the opportunity to be heard before Board member Sullivan. In accordance with the aforementioned discussion, we hold that the Board violated
E. Fair Process and Prejudice
In light of our holding, we need not decide whether fair process provides a right to a hearing before all members of a Board panel that are assigned to adjudicate an appeal. See Bucklinger v. Brown, 5 Vet.App. 435, 441 (1993) (“‘It is [a] fundamental and long-standing principle of judicial restraint ... that courts avoid reaching constitutional questions in advance of the necessity of deciding them.’ “).
Mr. Arneson argues that he was prejudiced because a hearing before Board member Sullivan could have altered the Board‘s determination on his continuity-of-symptoms argument and, therefore, the outcome of his claim. The Secretary asserts that an additional hearing is unwarranted because (1) Board members Sabulsky and Herman already held hearings and only a majority is needed for a binding decision under
This Court has held that “[t]he entire thrust of VA‘s nonadversarial claims system is predicated upon a structure which provides for notice and an opportunity to be heard at virtually every step in the process.” Thurber v. Brown, 5 Vet.App. 119, 123 (1993). Here, Mr. Arneson was never notified that an additional factfinder had been assigned to adjudicate his appeal, and never given the opportunity provided by statute and regulation to have a hearing 2 before that decisionmaker. If nothing else, the hearing and remand by Board member Sabulsky, followed by a hearing by Board member Herman, followed by the addition of Board member Sullivan and the rendering of a panel decision, without any notice or opportunity to be heard by the third member of the panel, gives an appearance of forum shopping, regardless of the good-faith basis for assigning the panel. In the claimant-friendly world of veterans benefits, “the importance of systemic fairness and the appearance of fairness carries great weight.” Hodge v. West, 155 F.3d 1356, 1363 (Fed. Cir. 1998).
However, the perception of unfairness is not the only issue here. As Mr. Arneson argues, the piecemeal assignment of Board members to a panel post-hearing—such that Board members are assessing credibility based on a second-hand conveyance or a review of a transcript—undermines the claimant‘s ability to personally impress his credibility upon his factfinders. See Anderson v. City of Bessemer City, N.C., 470 U.S. 564, 575 (1985) (noting that “variations in demeanor and tone of voice” bear heavily on a judge‘s credibility assessment); Caluza v. Brown, 7 Vet.App. 498, 511 (1995), aff‘d per curiam, 78 F.3d 604 (Fed. Cir. 1996) (table) (“[C]redibility is often defined as determined by the demeanor of the witness....“).
Furthermore, the right to a hearing as a conduit for conveying one‘s credibility could be rendered meaningless if the credibility determinations of one Board member who attended the hearing were overruled by two Board members who did not attend that hearing. See
As to the Secretary‘s first argument, although a majority of the Board panel was present at a hearing and only a majority is needed for a binding decision, the Secretary fails to understand that the Board panel is not three individual members making decisions. As with other factfinders across American jurisprudence, the interaction and deliberation between Board members in making decisions is essential to the collective judgment rendered. Cf. United States v. Resko, 3 F.3d 684, 689 (3d Cir. 1993) (“[T]he jury system is meant to involve decisionmaking as a collective, deliberative process.“); United States v. Allen, 736 F.Supp. 914, 917 (N.D. Ill. 1990) (“The viability of the jury as a decision making body is dependent upon the interaction of individuals in a collective process.“).
With regard to the Secretary‘s second argument, although the Board found Mr. Arneson‘s testimony “credible,” it also found the lapses in time between service and his first medical treatment “particularly significant” and “weigh[ing] against his claim.” R. at 16-18. As Mr. Arneson argues, if the Board found his testimony concerning the continuity of his symptoms credible, such lapses in time would not weigh against his claim. The Board also stated that Mr. Arneson‘s statements were “not competent medical evidence.” R. at 17. This is true. But if the Board found his testimony credible, Mr. Arneson would not need competent medical evidence to substantiate his claim. See Savage v. Gober, 10 Vet.App. 488, 495-96 (1997) (holding that, per
We cannot say how a hearing before all Board members assigned to adjudicate his appeal would have affected the Board‘s determinations on credibility, probative weight, and ultimately Mr. Arneson‘s claim. However, we find that the assign
F. Mr. Arneson‘s Remaining Arguments
Because the matters of plantar fasciitis and a knee disability are being remanded, the majority of Mr. Arneson‘s remaining assertions—that the Board erred in its duty to assist, probative value, and credibility determinations—are rendered moot. See Dunn v. West, 11 Vet.App. 462, 467 (1998) (remand of claim under one theory moots the remaining theories advanced on appeal). With regard to benefits for hallux valgus, the parties agree—and the record reflects—that Mr. Arneson‘s original claim for benefits for a foot condition reasonably included a claim for benefits for hallux valgus. See Clemons v. Shinseki, 23 Vet.App. 1, 5 (2009) (“[T]he claimant‘s intent in filing a claim is paramount to construing its breadth.“). Thus, remand is warranted. Tucker, supra.
G. Remand
On remand, Mr. Arneson is free to submit additional evidence and argument on the remanded matters, and the Board is required to consider any such relevant evidence and argument. See Kay v. Principi, 16 Vet.App. 529, 534 (2002) (stating that, on remand, the Board must consider additional evidence and argument in assessing entitlement to benefit sought); Kutscherousky v. West, 12 Vet.App. 369, 372-73 (1999) (per curiam order). The Court has held that “[a] remand is meant to entail a critical examination of the justification for the decision.” Fletcher v. Derwinski, 1 Vet.App. 394, 397 (1991). The Board must proceed expeditiously, in accordance with
IV. CONCLUSION
Upon consideration of the foregoing analysis, the record on appeal, and the parties’ pleadings, the November 20, 2008, Board decision denying service connection for plantar fasciitis and knee disability is VACATED. Those matters, along with the appellant‘s claim for entitlement to service connection for hallux valgus, are REMANDED for further development and readjudication consistent with this opinion.
KASOLD, Chief Judge, filed an opinion concurring in the result.
KASOLD, Chief Judge, concurring in the result:
I agree that a claimant is entitled to the opportunity for a personal hearing in front of the Board member or panel that adjudicates his administrative appeal, but I find this entitlement in the statutes, not the regulation. Although the Secretary argues that his regulations permit the adjudication of an appeal by a Board panel
When examining the statutory terms of the relevant provisions in their context and with a view to their place in the overall statutory scheme, it is clear that amendments to title 38 enacted in 1994 fundamentally changed a claimant‘s right to a hearing. See Tyler, 533 U.S. at 662; see also FDA v. Brown & Williamson, 529 U.S. at 133 (“[T]he meaning of one statute may be affected by other Acts, particularly where Congress has spoken subsequently and more specifically to the topic at hand.“); Fausto, 484 U.S. at 453 (“Th[e] classic judicial task of reconciling many laws enacted over time, and getting them to ‘make sense’ in combination, necessarily assumes that the implications of a statute may be altered by the implications of a later statute.“).
Post-1994
This conclusion is bolstered by
Regardless of the basis of the claimant‘s right, my colleagues correctly hold that a claimant has a right to notice and an opportunity to be heard upon the post-hearing addition of Board members to an appeal, and Mr. Arneson was deprived of that right. Further, although it cannot be said definitively whether a new hearing will affect the outcome of Mr. Arneson‘s appeal, my colleagues correctly find that Mr. Arneson has demonstrated prejudice because he was deprived of the opportunity to meaningfully participate in the processing of his claim—i.e., to personally testify in front of all his decisionmakers—in a way that could have altered the Board‘s credibility determinations. See Sanders, 129 S.Ct. at 1708 (finding prejudice not demonstrated when appellant did not explain, and Court could not discern, how error could have made a difference in outcome); Overton, 20 Vet.App. at 435 (any error depriving a claimant of “a meaningful opportunity to participate effectively in the processing of his or her claim ... must be considered prejudicial“).
MARY J. SCHOELEN
JUDGE, UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS
