Arthur Hairston, Sr. v. Department of Veterans Affairs ( 2021 )

UNPUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
No. 19-1276
ARTHUR LEE HAIRSTON, SR.
Plaintiff – Appellant,
v.
DVA, Regional VA Office Martinsburg; CLAIMS INTAKE CENTER, Philadelphia
Pension Center
Defendants – Appellees.
Appeal from the United States District Court for the Northern District of West Virginia, at
Martinsburg. Gina M. Groh, Chief District Judge. (3:19-cv-00016-GMG)
Argued: December 8, 2020 Decided: January 21, 2021
Before DIAZ, THACKER, and HARRIS, Circuit Judges.
Affirmed by unpublished opinion. Judge Harris wrote the opinion, in which Judge Diaz
and Judge Thacker joined.
ARGUED: Gabriele Wohl, BOWLES RICE, LLP, Charleston, West Virginia, for
Appellant. McKaye Lea Neumeister, UNITED STATES DEPARTMENT OF JUSTICE,
Washington, D.C., for Appellees. ON BRIEF: Jeffrey Bossert Clark, Acting Assistant
Attorney General, Charles W. Scarborough, Civil Division, UNITED STATES
DEPARTMENT OF JUSTICE, Washington, D.C.; William J. Powell, United States
Attorney, OFFICE OF THE UNITED STATES ATTORNEY, Martinsburg, West
Virginia, for Appellees.
Unpublished opinions are not binding precedent in this circuit.
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PAMELA HARRIS, Circuit Judge:
Arthur Lee Hairston, Sr. filed a pro se complaint before the district court, alleging
discrimination in connection with his request for veterans’ benefits from the Department
of Veterans Affairs (“VA”). According to Hairston, VA representatives twice
discriminated against him by improperly failing to instruct him on how to apply for
benefits. The district court dismissed Hairston’s complaint, treating it as a claim under
Title VII and finding that Hairston had failed to exhaust his administrative remedies.
We agree with Hairston – as does the government – that the district court erred in
construing Hairston’s complaint as raising a Title VII claim and holding it to Title VII’s
exhaustion requirements. We nevertheless affirm the district court’s dismissal on a
different ground: Hairston seeks a determination of his eligibility for veterans’ benefits,
and the Veterans’ Judicial Review Act divests the district court of jurisdiction to grant that
relief.
I.
On February 7, 2019, Hairston filed a pro se civil complaint in the Northern District
of West Virginia. In his complaint, Hairston alleged that he was discriminated against
twice while trying to apply for veterans’ benefits, when VA employees failed to provide
him, in a timely manner, with accurate information about the application process. The
caption of the complaint characterized his suit as a “Civil Suit 28 U.S.C. 1331,” referring
to the statute that generally gives the district courts jurisdiction over questions of federal
law. J.A. 4. But the caption also included the label “Title VII Discrimination.” Id.
3
According to Hairston’s complaint, he first contacted the VA about applying for
benefits on August 15, 2018. He was instructed to submit a statement in support of his
claim, which he did the same day. But both in this initial contact in August 2018 and again
in a subsequent call in October 2018, Hairston alleges, VA representatives discriminated
against him by failing to inform him that he needed to submit an application and supporting
documents along with his statement. 1 It was not until December 31, 2018, that Hairston
finally was told to submit an application. As a result of this delay, Hairston claims, his
benefits did not start until August 2019. Accordingly, Hairston’s complaint seeks relief in
the form of the benefits to which he would have been entitled from August 2018 to August
2019, had he been properly instructed on how to file an application when he first contacted
the VA.
Along with his complaint, Hairston filed a motion for leave to proceed in forma
pauperis, and the district court referred both to a magistrate judge. The magistrate judge
construed the complaint as an attempt to raise a Title VII claim, relying on Hairston’s
reference to Title VII in the complaint’s caption. It followed, the magistrate judge found,
that the district court lacked jurisdiction over the claim, because the complaint did not
indicate that Hairston had “exhausted his remedies through the Equal Employment
Opportunity Commission.” J.A. 14. In the alternative, the magistrate judge concluded,
1
The VA is statutorily required to furnish individuals seeking to apply for benefits
with “all instructions and forms necessary to apply,” 38 U.S.C. § 5102(a), including “the
appropriate application form,” 38 C.F.R. § 3.150(a). It must also notify claimants with
incomplete applications “of the information necessary to complete the application.” 38
U.S.C. § 5102(b); see also 38 C.F.R. § 3.159(b)(2).
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Hairston had failed to state a claim under Title VII, given that he had not described any
employment relationship between the parties.
Hairston timely objected to the magistrate judge’s report and recommendation,
asserting that the district court had federal question jurisdiction under 28 U.S.C. § 1331and that his reference to Title VII was an “inadvertent mistake.” J.A. 18. On March 6,
2019, the district court adopted the report and recommendation. Notwithstanding
Hairston’s clarification regarding Title VII, the district court, like the magistrate judge,
treated the complaint as raising a Title VII claim. And because Hairston had not indicated
that he had exhausted his administrative remedies, the district court held, it had no subject-
matter jurisdiction over that Title VII claim. 2 Echoing the magistrate, the district court also
held, in the alternative, that Hairston had failed to allege any of the elements of a Title VII
claim, including an employment relationship. Accordingly, the district court sua sponte
dismissed Hairston’s complaint, and denied as moot his motion to proceed in forma
pauperis.
Hairston timely appealed the district court’s order. In his informal pro se brief, he
again clarified that he was not raising a Title VII claim and that he had listed that statute
only “in error” in the caption of his complaint. Appellant’s Informal Br. 2.
2
After the district court issued its decision, the Supreme Court held in Fort Bend
County v. Davis, 139 S. Ct. 1843 (2019), that Title VII’s exhaustion requirement is a non-
jurisdictional claims-processing rule, which may be forfeited if it is not timely raised by a
defendant. Id. at 1849–52. Even assuming, in other words, that Hairston was raising a
Title VII claim, any failure to allege exhaustion would not deprive the district court of
jurisdiction under the Supreme Court’s most recent guidance. Because we decide this case
on different grounds, we need not address this issue further.
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II.
A.
On appeal, both Hairston and the government contend that the district court erred in
construing Hairston’s complaint as one brought under Title VII and thus subject to Title
VII’s exhaustion requirements. We review a district court’s dismissal for lack of subject
matter jurisdiction de novo, Campbell v. McCarthy, 952 F.3d 193, 202 (4th Cir. 2020), and
we agree with the parties.
It is well-established that pro se complaints are to be construed liberally, interpreted
to “raise the strongest arguments that they suggest.” Martin v. Duffy, 977 F.3d 294, 298
(4th Cir. 2020) (internal quotation marks omitted); see Erickson v. Pardus, 551 U.S. 89,
94 (2007) (per curiam). Read generously, what Hairston’s complaint alleges is that VA
employees discriminated against him when they failed to timely and properly advise him
on the process for seeking benefits. But both the magistrate judge and the district court
treated the complaint as arising under Title VII, which addresses discrimination only in
employment – while also recognizing, in their alternative holdings, that Hairston in fact had
not alleged any employment discrimination or even an employment relationship. And they
did so despite the fact that this construction subjected Hairston’s claim to an exhaustion
requirement that his complaint did not address, effectively guaranteeing a quick dismissal.
That does not qualify as a “liberal” construction of a pro se complaint.
The magistrate judge treated Hairston’s complaint as a Title VII claim because the
complaint’s caption lists “Title VII Discrimination” along with “Civil Suit 28 U.S.C.
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§ 1331.” J.A. 4. But that elevates form over substance, and we have cautioned against
doing precisely that in construing pro se complaints. See Caldwell v. U.S. Dep’t of Educ.,
816 F. App’x 841, 842 (4th Cir. 2020) (per curiam) (“[I]t is the substance of [pro se]
pleadings, rather than their labels, that is determinative.”); see also Means v. Alabama, 209
F.3d 1241, 1242 (11th Cir. 2000) (per curiam) (“[F]ederal courts must look beyond the
labels of motions filed by pro se inmates to interpret them under whatever statute would
provide relief.”).
And even if there had been any doubt when the magistrate judge initially reviewed
the complaint, it should have been resolved by Hairston’s objections to the report and
recommendation, clarifying that his reference to Title VII had been an “inadvertent
mistake.” J.A. 18. A district court is required to conduct a de novo review “of those
portions of the [magistrate judge’s] report . . . to which objection is made.” Diamond v.
Colonial Life & Accident Ins. Co., 416 F.3d 310, 315 (4th Cir. 2005) (emphasis omitted)
(quoting 28 U.S.C. § 636(b)(1)). Hairston’s objection was sufficiently specific to “alert
the district court” of his argument that the magistrate judge had erred in reading his
complaint as alleging a Title VII violation. See Martin v. Duffy, 858 F.3d 239, 245 (4th
Cir. 2017) (internal quotation marks omitted). Nevertheless, the district court, without
discussion, simply carried forward the magistrate judge’s reliance on a stray label in
Hairston’s pro se complaint, since disavowed by Hairston.
Liberally and properly construed, Hairston’s complaint was not brought under Title
VII, which means that Hairston was not required to allege administrative exhaustion or the
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elements of a Title VII claim. The district court thus erred in dismissing Hairston’s
complaint on those grounds.
B.
The government argues on appeal that we should affirm the district court’s dismissal
for a different reason: Federal district court review of benefits determinations by the VA
is precluded by the Veterans’ Judicial Review Act (“VJRA”), Pub. L. No. 100-687, 102
Stat. 4105 (1988). Because Hairston’s complaint effectively seeks review of the VA’s
failure to provide benefits for the one-year period during which his application allegedly
was delayed, the government contends, the district court lacked jurisdiction over his claim.
We agree.
Through the VJRA, Congress enacted a specialized review process for the
adjudication of veterans’ benefits claims. The Secretary of the VA, as mandated by statute,
decides “all questions of law and fact necessary to a decision by the Secretary under a law
that affects the provision of benefits by the Secretary to veterans.” 38 U.S.C. § 511(a).
Subject to some exceptions not relevant here, see id. § 511(b), such decisions by the
Secretary may only be reviewed on appeal by the Board of Veterans’ Appeals, a VA
administrative body, id. § 7104(a), and then by the United States Court of Appeals for
Veterans Claims, an Article I court with “exclusive jurisdiction to review decisions of the
Board of Veterans’ Appeals,” id. § 7252(a). Decisions by the Court of Appeals for
Veterans Claims may be appealed only to the Federal Circuit. Id. § 7292(a), (c).
Congress made clear that this specialized review process is also an exclusive one.
Beyond this narrow route, federal courts generally are barred from hearing challenges to
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benefits determinations. The Secretary’s decisions on “all questions of law and fact”
relevant to “the provision of benefits” are “final and conclusive and may not be reviewed
by any other official or by any court” beyond the statutorily prescribed appeals process.
Id. § 511(a). The upshot, as we have explained, is that federal district courts lack
jurisdiction to review VA decisions that “affect the provision of the benefits awarded by
the VA.” Butler v. United States, 702 F.3d 749, 753 (4th Cir. 2012) (citation omitted).
We need not explore the outer bounds of that limit on district court jurisdiction to
resolve this case. It is clear – and we do not understand Hairston to dispute – that at a
minimum, § 511(a) bars review of an individual benefits determination by the VA. See,
e.g., id.; Veterans for Common Sense v. Shinseki, 678 F.3d 1013, 1023 (9th Cir. 2012). 3
And although Hairston argues otherwise on appeal, that is what he seeks in his complaint.
The gist of Hairston’s complaint, read liberally and fairly understood, is that discrimination
by VA representatives delayed the completion of his application for benefits and led to an
improper determination that his benefits would not start until August 2019. And the
specific relief he seeks – in both his pro se complaint and his counseled brief on appeal –
is that he be awarded benefits for the period from August 2018 to August 2019, during
which he alleges he would have been receiving benefits but for the VA’s discriminatory
3
In Veterans for Common Sense v. Shinseki, 678 F.3d 1013, a divided panel of the
Ninth Circuit held that § 511(a) also would preclude review of whether the VA “acted
properly in handling” the benefits requests of a class of veterans, even apart from any
individual claim that benefits were wrongly denied or calculated. Id. at 1025. We need
not pass on that reading of § 511(a) in this case nor decide whether, as the government
suggests, it also would bar district court review of Hairston’s claims.
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actions. See J.A. 5 (complaint) (“[P]laintiff seeks the benefits entitled from August 2018
to present . . . .”); Appellant’s Br. 4 (“Appellant asks that he be deemed eligible for benefits
from August 2018 to August 2019.”).
Hairston’s requested relief would require the district court to determine his
eligibility for pension benefits. Because this would entail deciding questions “necessary
to a decision by the Secretary under a law that affects the provision of benefits by the
Secretary to veterans,” 38 U.S.C. § 511(a), the VJRA divests the district court of
jurisdiction to grant such relief. Similarly, Hairston’s challenge to the delay in granting his
benefits would require the district court to determine whether the VA properly set the
August 2019 start date for benefits – a decision likewise outside the district court’s
jurisdiction. See Veterans for Common Sense, 678 F.3d at 1026 (observing that VJRA
“undoubtedly would deprive [the court] of jurisdiction to consider an individual veteran’s
claim that the VA unreasonably delayed” the start of benefits); Mehrkens v. Blank, 556
F.3d 865, 870 (8th Cir. 2009) (“[T]here is no meaningful legal difference between a delay
of benefits and an outright denial of benefits. In either case, Congress has charged the
VJRA with exclusive jurisdiction.”).
Because Hairston’s discrimination claims ask the district court to recognize his
entitlement to benefits and review the VA’s determination of the appropriate start date for
those benefits, they fall within the scope of § 511(a) and cannot be heard in district court.
That does not mean that Hairston is without remedy for his alleged injuries; the VJRA
provides its own review scheme for benefits determinations, and Hairston in fact is
pursuing an appeal within that review mechanism. See Hairston v. Wilkie, No. 20-4692
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(Vet. App. docketed June 29, 2020), https://go.usa.gov/xGkFg. But the district court
lacked jurisdiction to consider Hairston’s claims, and for that reason, we affirm its
dismissal of Hairston’s complaint.
III.
For the reasons given above, we affirm the district court’s dismissal of Hairston’s
complaint for lack of subject matter jurisdiction on alternate grounds.
AFFIRMED
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