Robert H. GRAY, Appellant, v. Robert A. McDONALD, Secretary of Veterans Affairs, Appellee.
No. 13-3339.
United States Court of Appeals for Veterans Claims.
Argued Feb. 25, 2015. Decided April 23, 2015.
27 Vet. App. 313
IV. CONCLUSION
Upon consideration of the foregoing analysis, the record on appeal, and the parties’ pleadings, the Court‘s August 28, 2014, single judge memorandum decision is WITHDRAWN, and this opinion is issued in its stead. The Board‘s November 7, 2013, decision is AFFIRMED.
Michael E. Wildhaber, of Washington, D.C., with whom Matthew D. Hill, of Daytona Beach, Florida, was on the brief for the appellant.
Sarah Fusina, with whom Tammy L. Kennedy, Acting General Counsel; Mary Ann Flynn, Assistant General Counsel; and Penny C. Kahn, Senior Appellate Attorney, all of Washington, D.C., were on the brief for the appellee.
John B. Wells, of Slidell, Louisiana, was on the brief for Blue Water Navy Vietnam Veterans Association and for Military-Veterans Advocacy, Inc., as amici curiae.
Before HAGEL, DAVIS, and SCHOELEN, Judges.
SCHOELEN, Judge:
I. BACKGROUND
Mr. Gray served on active duty in the U.S. Navy from September 1971 to February 1975. R. at 547. He served aboard the U.S.S. Roark from March 1972 through September 1974. Id. The deck logs reflect that the U.S.S. Roark anchored in Da Nang Harbor multiple times in 1972. R. at 611-17. The deck logs also reflect that the ship operated “off the Cua Viet River mouth” and engaged the enemy in the vicinity of the Cua Viet River. R. at 617.
In June 2007, Mr. Gray applied for disability compensation for several conditions including “diabetes—type 2,” bilateral neuropathy of the lower limbs, and “heart attack/heart damage.” R. at 942. VA outpatient records reflect diagnoses for all three conditions. R. at 678, 763. Recognizing that Mr. Gray‘s diabetes claim may be affected by the then-pending action in Haas v. Peake, 525 F.3d 1168 (Fed.Cir. 2008), cert. denied, 555 U.S. 1149, 129 S.Ct. 1002, 173 L.Ed.2d 315 (2009), the regional office (RO) deferred that claim until Haas was resolved.2 R. at 780-82. A May 2008 rating decision denied Mr. Gray‘s neuropathy and heart disability claims. R. at 618-27. That same month, the U.S. Court of Appeals for the Federal Circuit (Federal Circuit) issued a decision in Haas.3
In August 2008, Mr. Gray submitted an additional claim for “sexual dysfunction due to Type 2 diabetes.” R. at 609. In October 2008, the appellant submitted a Notice of Disagreement as to the May 2008 rating decision. R. at 596-97. A February 2009 rating decision denied service connection for diabetes and for erectile dysfunction (ED). R. at 410-17. The RO noted that presumptive service connection for diabetes based on herbicide exposure was not warranted because the evidence did not show that Mr. Gray served “on the ground” in Vietnam. R. at 416.
Mr. Gray perfected his appeal of the neuropathy and heart disease claims in July 2009 and the diabetes and ED claims in September 2009. R. at 336-37, 377-78. In January 2010, Mr. Gray sought to reopen a claim for ischemic heart disease and submitted supporting documents including Internet articles discussing VA‘s effort to compile a list of “Blue Water Navy ships,” an excerpt from “Veterans and Agent Orange: Update 2008,” and a
in the instant case, the [v]eteran‘s service was conducted on a ship that frequently anchored in a harbor within the territorial borders of Vietnam. The evidence of record clearly shows that Da Nang Harbor is well sheltered and surrounded on three sides by the shoreline of Vietnam. The harbor is nearly totally surrounded by land and . . . the entire harbor is located within the territorial boundaries of Vietnam. As such, given the location of the harbor as being surrounded by the land on three sides, and the evidence that the harbor is within the territory of Vietnam, and resolving all doubt in the [v]eteran‘s favor, the Board finds that Da Nang Harbor is an inland waterway for purposes of the regulation.
R. at 320. The Board granted presumptive service connection for the veteran in that case stating that there was “credible evidence that the [v]eteran set foot on land in Vietnam during the Vietnam Era, and he now has diabetes mellitus.” Id. (emphasis added).
In a June 2010 diabetes compensation and pension (C & P) examination, the examiner noted Mr. Gray‘s service on the U.S.S. Roark and his statement “that he was never on land.” R. at 264. The examiner found that Mr. Gray‘s ED and peripheral neuropathy were “as likely as not” secondary to his diabetes. R. at 267. An August 2010 Supplemental Statement of the Case (SSOC) denied the claims for diabetes, ED, peripheral neuropathy, and heart attack and heart damage. R. at 257-63.
Regarding Mr. Gray‘s ischemic heart disease claim, in April 2011, the RO issued a formal finding of a lack of information for corroborating exposure to Agent Orange, noting that a March 2011 response from the Joint Services Records Research Center did not reflect that the ship transited inland waters or docked or that personnel set foot in Vietnam. R. at 202-03. In May 2011, the RO denied disability compensation for the heart attack and heart damage claim, also claimed as ischemic heart disease, for purposes of entitlement to retroactive benefits as a result of exposure to herbicides. R. at 193-201.
In January 2012, Mr. Gray, through counsel, submitted additional argument asserting that although the Federal Circuit upheld VA‘s interpretation of
In the November 2013 decision on appeal, the Board rejected Mr. Gray‘s argument that Da Nang Harbor is an inland waterway of Vietnam because it contradicted “VA‘s official position on this matter.” Id. For support, the Board cited a December 2008 VA Compensation & Pension Service Bulletin (December 2008 C & P Bulletin) that “specifically stated that Da Nang Harbor and all other harbors along the Vietnam coastline” were considered blue water and not brown water.4 R. at
The Board also rejected Mr. Gray‘s argument that denying him the presumption of herbicide exposure when the November 2009 Board decision had granted it to a different veteran violated the Equal Protection Clause. R. at 18-19. The Board emphasized that under
II. THE PARTIES’ ARGUMENTS
Mr. Gray argues that the Board made three errors. First, he asserts, the Board‘s finding that anchoring in Da Nang Harbor does not constitute service on the inland waters of the Republic of Vietnam is arbitrary and capricious. Appellant‘s Brief (Br.) at 12-13. Mr. Gray asserts that there is no legal authority or rationale supporting VA‘s bare policy statement that Da Nang Harbor is “blue water.” Id. at 13-14. Mr. Gray notes that the only justification for classifying Da Nang Harbor as blue water is an opinion that “Da Nang Harbor is easy to enter due to being open to the sea.” Id.; Appendix at 47.
Mr. Gray urges the Court to adopt an alternative definition for “inland waters” espoused in the United Nations Convention on the Territorial Sea and the Contiguous Zone (Convention), Apr. 29, 1958, 15 U.S.T. 1606, T.I.A.S. No. 5639 (entered into force for the United States June 10, 1964) and applied by the U.S. Supreme Court in United States v. Louisiana, 394 U.S. 11, 22-23, 89 S.Ct. 773, 22 L.Ed.2d 44 (1969) (applying the treaty definition to a Submerged Lands Act issue). He asserts that under this alternative definition, Da Nang Harbor would be classified as an inland waterway, and he would be entitled to the presumption of herbicide exposure. Appellant‘s Br. at 16.
Alternatively, Mr. Gray argues that the Board committed a second error by violating the Equal Protection Clause of the Fifth Amendment of the U.S. Constitution because a November 2009 Board decision had applied the presumption to a similarly situated veteran. Id. at 18-19. He asserts that the Board improperly rejected his argument “out of hand” and ignored the Board‘s policy to “‘strive for consistency.‘” Id. at 19. Finally, Mr. Gray contends that, should the Court uphold VA‘s classification of Da Nang Harbor as blue water, remand is still appropriate because the Board provided inadequate reasons or bases for its decision. Id. at 23-24.
The Secretary argues that the Court should affirm the Board decision because Mr. Gray‘s arguments for reversal were considered and rejected by the Federal Circuit in Haas v. Peake. Secretary‘s Br. at 10. The Secretary asserts that in Haas, the Federal Circuit deferred to VA‘s inter-
As to Mr. Gray‘s remaining arguments, the Secretary argues that his Equal Protection argument must fail. First, under the rational basis test, he asserts that the Federal Circuit in Haas has already found that VA has a rational basis for its interpretation of
In the interest of narrowing the issues, the Court takes note of the following concessions made at oral argument. First, Mr. Gray concedes that the U.S.S. Roark‘s mooring to the U.S.S. Samuel Gompers while it was docked to a pier in Da Nang Harbor is irrelevant: he bases his argument solely on his ship‘s presence within the harbor itself. Oral Argument (Arg.) at 02:45 (Feb. 25, 2015). Second, Mr. Gray concedes that he never physically set foot on land in the Republic of Vietnam. Id. Finally, with the exception of hypertension, Mr. Gray‘s claimed disabilities are on the list of diseases entitled to presumptive service connection as a result of herbicide exposure. Therefore, as both parties agreed at oral argument, if the Court were to find that Da Nang Harbor is an inland waterway, Mr. Gray would prevail on his claims for disability compensation. Oral Arg. at 49:25.
III. ANALYSIS
A. Overarching Legal Framework: Haas v. Peake
Under
In reviewing “an agency‘s construction of the statute which it administers,” a court must apply the doctrine set forth in Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), and determine
Here the Court is not working with a blank canvas: the Federal Circuit engaged in a thorough and extensive application of the Chevron doctrine in Haas v. Peake, supra. Reviewing the language and legislative history of
In Haas v. Peake, VA argued that it reasonably interpreted its regulation to limit the presumption of exposure to veterans who served on or visited the Vietnamese landmass or its inland waterways and excluded veterans—such as Mr. Haas—who served exclusively offshore in ocean-going ships.6 Id. at 1182-83. In Haas, VA noted that it drew this line because “Agent Orange was sprayed only on land, and therefore, the best proxy for exposure is whether a veteran was present within the land borders of the Republic of Vietnam.” Id. at 1192. The Federal Circuit found this explanation reasonable and concluded that absent evidence that VA‘s line was irrational, it would not impose a different line. Id. at 1192-93.
Essentially, Haas v. Peake laid the foundation for the blue-versus-brown-water distinction. The Federal Circuit recognized that “[t]he entire predicate for the Agent Orange Act and its regulations was exposure to herbicides in general and Agent Orange in particular.” Id. at 1185. Thus, VA‘s interpretation of
Yet, contrary to the Secretary‘s brief, Haas v. Peake—which dealt with a veteran who only served miles off shore—did not decide the specific question before the Court. As noted above, Haas v. Peake made it clear that VA may draw a line between blue and brown water while leaving the specific line drawing to VA discretion. As the parties agreed at oral argument, this case asks the Court to examine how VA exercised that discretion and, more specifically, whether VA‘s definition of inland waterways—which does not include Da Nang Harbor—is entitled to deference: a question not addressed by Haas v. Peake.
B. Whether VA‘s interpretation is entitled to deference
An agency‘s interpretation of its own regulations is entitled to substantial deference by the Court. See United States v. Cleveland Indians Baseball Co., 532 U.S. 200 (2001); Auer v. Robbins, 519 U.S. 452, 461-62 (1997). This high degree of deference applies even when that interpretation is first advanced during litigation. Reizenstein v. Shinseki, 583 F.3d 1331, 1335 (Fed.Cir. 2009) (citing Cathedral Candle Co. v. U.S. Int‘l Trade Comm‘n, 400 F.3d 1352, 1364 (Fed.Cir. 2005)). Where, as here, the plain language is ambiguous, the Court must consider the reasonableness of the Secretary‘s regulatory interpretation. Mason v. Shinseki, 26 Vet.App. 1, 6 (2012). “[C]ourts should defer to an agency‘s interpretation of its own ambiguous regulation so long as that interpretation is not inconsistent with the language of the regulation or otherwise plainly erroneous and represents the agency‘s considered view on the matter.” Mulder v. Gibson, 27 Vet.App. 10, 16 (2014) (citing Smith v. Nicholson, 451 F.3d 1344, 1349 (Fed.Cir. 2006) (citing Auer v. Robbins, 519 U.S. at 461-62)). In determining whether VA‘s interpretation of its regulation is “reasonable,” the Court will consider, among other things, the “timing and consistency of the agency‘s interpretation,” Batterton v. Francis, 432 U.S. 416, 425-26 n. 9 (1977); the “thoroughness evident in its consideration, [and] the validity of its reasoning,” Skidmore v. Swift & Co., 323 U.S. 134, 140 (1944) (“[R]ulings, interpretations, and opinions . . . while not controlling upon the courts by reason of their authority, do constitute a body of experience and informed judgment . . . properly resort[ed][to] for guidance. The weight of such a judgment . . . will depend upon the thoroughness evident in its consideration, the validity of its reasoning, its consistency with earlier and later pronouncements, and all those factors which give it power to persuade.“).
1. The Secretary‘s Policy
In the wake of Haas v. Peake, VA exercised its discretion to specifically delineate the scope of qualifying service “within the land borders of Vietnam.” VA applies the presumption of herbicide exposure to service members that (1) set foot (however briefly) on land in Vietnam; (2) served on inland waterways; and (3) served on a ship with decklogs that reference “anchoring or entering the ‘mouth’ of” the Cua Viet River, Saigon River, Mekong River Delta, Ganh Rai Bay, and the Rung Sat Special Zone. M21-1MR, pt. IV, subpt. ii., ch. 1, sect. H; Training Letter 10-06. VA defines inland waterways as “rivers, estuaries, canals, and delta areas inside the country, but not . . . open deep-water coastal ports and harbors
As Haas v. Peake observed, the presumption did not apply to Mr. Haas‘s service miles offshore because spray flight paths did not cross the open ocean. 525 F.3d at 1192 (quoting 73 Fed.Reg. 20,566, 20,568 (Apr. 16, 2008)). Haas concluded that VA‘s distinction between inland and offshore waters based on spraying was reasonably related to the primary predicate of both
2. VA‘s interpretation is inconsistent with the regulation.
As the Board clearly stated in the decision on appeal, VA‘s policy designates Da Nang Harbor as blue water and, therefore, anchoring in the harbor is insufficient to establish entitlement to the presumption. R. at 16-17. The Secretary contends that, as in Haas v. Peake, VA‘s interpretation is entitled to deference because it reasonably interprets the regulation and has been consistently expressed in VA documents since at least 2008. However, unlike Haas, the rationale underlying the designation of Da Nang Harbor here is inconsistent with the identified purpose of the statute and regulation: providing compensation to veterans based on the likelihood of exposure to herbicides. Haas, 525 F.3d at 1183, 1185.
Although the Secretary asserts that the exclusion of Da Nang Harbor from inland waterway designation was explained in statements in the Federal Register, these documents do not reveal any insights specifically pertaining to the likelihood of exposure in Da Nang Harbor. Oral Arg. at 58:00. They all reiterate VA‘s basic premise that herbicides were sprayed on land and not in the open waters “off the shore of Vietnam.” Monetary Allowance Under
3. VA‘s interpretation is irrational.
The Court is mindful of the challenges VA faces in defining the scope of the presumption with regard to waterways that open to the ocean. However, although the presumption is purportedly applied where there is evidence of spraying, the documents the Secretary relies upon are devoid of any indication that VA made a fact-based assessment of the probability of exposure in Da Nang Harbor from aerial spraying. Instead Training Letter 10-06, the M21-1MR, and the December C & P Bulletin reflect that VA based its designation of Da Nang Harbor on geographical characteristics—depth and ease of entry—and not on spraying. After a review of VA‘s line-drawing related to waterways that open to the ocean, the Court is unpersuaded that VA‘s definition of inland waterways reflects the Agency‘s fair and considered judgment.
First, the Secretary asserts that each designation was based on where Agent Orange was sprayed but fails to identify any specific indicia, criteria, or evidence that VA relies on to classify bodies of water. The December 2008 C & P Bulletin declares that “Da Nang harbor and all other harbors along the Vietnam Coastline” are blue water, but in contradiction to the policy advanced by the Secretary, VA designates both Quy Nhon Bay and Ganh Rai Bay as inland waterways. The only “parameters” the Secretary offered were that open deep-water harbors are not inland because they are offshore. Oral Arg. at 44:45. Thus, Quy Nhon was an inland waterway because it was “perhaps more narrow or more shallow” than Da Nang. The Court notes that the Secretary stated that “perhaps” Quy Nhon Bay was brown water because it was more narrow or more shallow than Da Nang Harbor without identifying any specific evidence or document for support, further suggesting that VA‘s policy is like a ship without an anchor: aimless and adrift from the regulation. Oral Arg. at 45:00. The Secretary did not provide any evidence or documentation related to spraying or other avenues of herbicide contamination that distinguished Quy Nhon or Ganh Rai from Da Nang. Reviewing maps of each of these bodies of water,9 the Court cannot discern any rhyme or reason in VA‘s determination that Quy Nhon Bay and Ganh Rai Bay are brown water but Vung Tau Harbor—which appears to be inside Ganh Rai Bay—Da Nang Harbor, and Cam Ranh Bay are blue water.10
Unlike in Haas v. Peake, the seemingly arbitrary and inconsistent results here are not a tolerable by-product of line-drawing. Haas deferred to VA‘s line-drawing as a proxy for exposure and acknowledged that line-drawing necessarily led to over- and under-inclusiveness, which alone did not render the line unreasonable. However, here, the arbitrary outcomes are not the result of a clear consistent rule anchored to the regulation. The inconsistent application of the presumption to waterways that open to the ocean flows from VA‘s improper reliance on factors unrelated to the regulation—like ease of entry—to draw the line. The Court appreciates that VA faces a difficult task. However, VA is not free to label bodies of water by flipping a coin, yet the outcomes here appear just as arbitrary.
Recognizing “[t]hat [a] generous degree of deference is due to an agency interpretation of its own regulations even when that interpretation is offered in the very litigation in which the argument in favor of deference is made,” Cathedral Candle Co., 400 F.3d at 1364 (citing Auer, 519 U.S. at 461-62), and in light of Haas v. Peake, the Court here considered the Agency‘s interpretation carefully. Howev-
C. Remedy
Mr. Gray argues that the Court should adopt the definition of inland waterways espoused in the U.N. Convention on the Territorial Sea and the Contiguous Zone. Appellant‘s Br. at 18. He asserts that under the Convention, Da Nang Harbor is an inland waterway within the borders of the Republic of Vietnam, and therefore, reversal would be the appropriate remedy. Id. He argues that the Court and VA are bound by the Convention definition because the U.S. Supreme Court adopted that definition in Louisiana, supra, and thus, the definition applies to all uses of the term “inland waterways” in U.S. law. Appellant‘s Br. at 15-16; Oral Arg. at 05:20. The Court disagrees.
Contrary to Mr. Gray‘s argument, the Supreme Court adopted the Convention definition for a specific purpose—not as the definition for “inland waterways” in all applications of the term in U.S. law. Louisiana, 394 U.S. at 34. Louisiana recognized that, four years earlier, United States v. California, 381 U.S. 139 (1965), adopted the convention definition “for purposes of the Submerged Lands Act.” In California, the Supreme Court interpreted “inland waterways” as it was used in the Submerged Lands Act. Id. at 164-66. The Supreme Court determined that Congress specifically left the definition of “inland waterways” in the Submerged Lands Act to the courts to define and that the Convention offered the “best and most workable” definition available. Id. at 165. The Supreme Court accordingly adopted that definition “for the purposes of the Submerged Lands Act.” Id. The Supreme Court gave no indication in either California or Louisiana that it intended for the Convention to apply every time the term “inland waterways” was used in U.S. law. Moreover, as the Federal Circuit noted in Haas, there is no indication in the language of
There is no indication that in using the term “inland waterways” VA intended to adopt the Convention definition, and the Secretary expressly denied any intent to do so at oral argument. Although the Court finds VA‘s definition of inland waterways irrational and not entitled to deference, VA retains its discretionary authority to define the scope of the presumption. The Court declines to usurp the Agency‘s authority and impose its own line. Rather, the Court will vacate the Board decision on appeal as arbitrary and capricious because the decision was based on VA‘s flawed interpretation of
D. Equal Protection Argument
As stated previously, Mr. Gray argues that reversal is warranted on Equal Protection grounds. Appellant‘s Br. at 18-19. Specifically, he contends that VA violated the Equal Protection Clause of the Fifth Amendment of the U.S. Constitution because a Board decision in another veteran‘s case found that Da Nang Harbor was an inland waterway and awarded that veteran the presumption. Id.
The Due Process Clause of the Fifth Amendment provides that “[n]o person shall . . . be deprived of life, liberty, or property, without due process of law.” U.S. CONST. Amend. V. The Federal Circuit has held that Due Process protections apply to disability compensation proceedings before the Board. Cushman v. Shinseki, 576 F.3d 1290 (Fed.Cir.2009). Although the Fifth Amendment, which applies to the Federal Government, “does not contain an equal protection clause as does the Fourteenth Amendment[,] which applies only to the states,” “discrimination may be so unjustifiable as to be violative of due process” under the Fifth Amendment. Bolling v. Sharpe, 347 U.S. 497, 499 (1954); see Bowers v. Shinseki, 26 Vet.App. 201, 208 n. 11 (2013); Robinson v. Brown, 9 Vet.App. 398, 401 (1996). “[A] party challenging a law on equal protection grounds ‘may make out a prima facie case of purposeful discrimination by showing that the totality of the relevant facts gives rise to an inference of discriminatory purpose.‘” Reeves v. West, 11 Vet.App. 255, 259 (1998) (quoting Batson v. Kentucky, 476 U.S. 79, 93-94 (1986)). The Equal Protection Clause “commands that no State shall ‘deny to any person within its jurisdiction the equal protection of the laws,’ which is essentially a direction that all persons similarly situated should be treated alike.” Cleburne v. Cleburne Living Ctr., Inc., 473 U.S. 432, 439 (1985).
To demonstrate that he was similarly situated to the other veteran, Mr. Gray submits a November 2009 Board decision in another veteran‘s case. Appellant‘s Br. at 19-20; R. at 3. A review of that Board decision reflects that in November 2009 the Board found that Da Nang Harbor was an inland waterway for purposes of the regulation (R. at 320), yet the Board concluded that the presumption applied because “there is credible evidence that the [v]eteran set foot on land in Vietnam during the Vietnam Era.” (R. at 320 (emphasis added)). The specific facts before the November 2009 Board decision are not before the Court; and thus, the Court finds that the Board‘s indication that the veteran set foot on land ambiguous. The veteran in that case served aboard the U.S.S. Oklahoma City, which appears on the list of ships with inland waterway service because it “docked in Saigon during July 21-24, 1964.” Agent Orange: Alphabetized Ships List, U.S. Department of Veterans Affairs, http://www.publichealth.va.gov/ (Accessed Mar. 17, 2015). Thus, it is unclear from the Board decision whether the “credible evidence” the Board relied on to afford the veteran the presumption was his ship‘s anchoring in Da Nang Harbor alone or some other evidence reflecting that the veteran had qualifying inland service, such as setting foot on land or presence in other inland waterways. Therefore, the Court cannot determine whether Mr. Gray is similarly situated to the veteran referenced in the November 2009 Board deci-
IV. CONCLUSION
Upon consideration of the foregoing, the portion of the November 6, 2013, Board decision denying Mr. Gray‘s claim for hypertension is AFFIRMED, and the remaining claims for diabetes, neuropathy of the left and right lower extremities, ischemic heart disease, and erectile dysfunction are VACATED and REMANDED for further proceedings consistent with this decision.
