Larson v. McDonough ( 2021 )


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  • Case: 20-1647    Document: 62     Page: 1   Filed: 08/26/2021
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    GARY R. LARSON, JR.,
    Claimant-Appellant
    v.
    DENIS MCDONOUGH, SECRETARY OF
    VETERANS AFFAIRS,
    Respondent-Appellee
    ______________________
    2020-1647
    ______________________
    Appeal from the United States Court of Appeals for
    Veterans Claims in No. 17-744, Judge Amanda L. Mere-
    dith.
    ______________________
    Decided: August 26, 2021
    ______________________
    CHRIS ATTIG, Attig Steel, PLLC, Little Rock, AR, ar-
    gued for claimant-appellant.
    ROBERT R. KIEPURA, Commercial Litigation Branch,
    Civil Division, United States Department of Justice, Wash-
    ington, DC, argued for respondent-appellee. Also repre-
    sented by BRIAN M. BOYNTON, MARTIN F. HOCKEY, JR.,
    ELIZABETH MARIE HOSFORD, ERIC JOHN SINGLEY;
    JONATHAN KRISCH, Y. KEN LEE, Office of General Counsel,
    United States Department of Veterans Affairs,
    Case: 20-1647    Document: 62     Page: 2   Filed: 08/26/2021
    2                                    LARSON   v. MCDONOUGH
    Washington, DC.
    CHERYL ZAK LARDIERI, Perkins Coie LLP, Washington,
    DC, for amici curiae National Veterans Services Program,
    National Organization of Veterans’ Advocates, Inc. Also
    represented by ALEXANDER O. CANIZARES, BETSELOT
    ZELEKE; JOHN D. NILES, Carpenter Chartered, Topeka, KS;
    BARTON F. STICHMAN, National Veterans Legal Services
    Program, Washington, DC.
    ______________________
    Before NEWMAN, REYNA, and HUGHES, Circuit Judges.
    HUGHES, Circuit Judge.
    Gary R. Larson, Jr. appeals the decision of the Veter-
    ans Court holding that it lacked jurisdiction to review a
    Board determination of what constitutes a disability under
    
    38 U.S.C. § 1110
    . Because this court has previously held
    that the Veterans Court has jurisdiction to review a Board
    determination that a claimed condition did not constitute a
    disability for purposes of § 1110, we reverse the Veterans
    Court’s jurisdictional finding and remand.
    I
    The relevant facts of this appeal are undisputed.
    Mr. Larson served on active duty for training in the United
    States Navy Reserves in 1988 and on active duty in the
    Navy from 1989 to 1993. He gained a substantial amount
    of weight before, during, and after his active service. In
    2009, Mr. Larson filed a claim for service connection for
    multiple conditions, including the two conditions at issue
    in this appeal, obesity and dysmetabolic syndrome (DMS).
    The VA denied the claims in 2010 and the Board affirmed
    that denial in 2016, holding that neither DMS nor obesity
    was a disability because neither condition is ratable under
    the VA Schedule of Rating Disabilities (rating schedule).
    Mr. Larson appealed to the Veterans Court.
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    LARSON   v. MCDONOUGH                                          3
    As relevant here, the Veterans Court affirmed the
    Board’s denial of service connection for DMS and obesity,
    holding that it lacked jurisdiction to review a Board deter-
    mination of what constitutes a disability under § 1110. Re-
    lying on this court’s decisions in Wanner v. Principi,
    
    370 F.3d 1124
     (Fed. Cir. 2004) and Wingard v. McDonald,
    
    779 F.3d 1354
     (Fed. Cir. 2015), and the Veterans Court’s
    decision in Marcelino v. Shulkin, 
    29 Vet. App. 155
     (2018),
    the Veterans Court reasoned that such inquiry amounted
    to a review of the ratings schedule, which is prohibited by
    
    38 U.S.C. § 7252
    (b). This appeal followed.
    II
    This court may review a Veterans Court decision “with
    respect to the validity of a decision of the Court on a rule of
    law or of any statute or regulation . . . or any interpretation
    thereof . . . that was relied on by the Court in making the
    decision.” 
    38 U.S.C. § 7292
    (a). In reviewing a Veterans
    Court decision, this court must decide “all relevant ques-
    tions of law, including interpreting constitutional and stat-
    utory provisions,” and set aside any interpretation thereof
    “other than a determination as to a factual matter” relied
    on by the Veterans Court that we find to be “(A) arbitrary,
    capricious, an abuse of discretion, or otherwise not in ac-
    cordance with law; (B) contrary to constitutional right,
    power, privilege, or immunity; (C) in excess of statutory ju-
    risdiction, authority, or limitations, or in violation of a stat-
    utory right; or (D) without observance of procedure
    required by law.” § 7292(d)(1). We review the Veterans
    Court’s legal determinations de novo. Kyhn v. Shinseki,
    
    716 F.3d 572
    , 575 (Fed. Cir. 2013).
    Mr. Larson argues on appeal that the Veterans Court
    legally erred when it held that the prohibition against re-
    view of the rating schedule deprived it of jurisdiction to re-
    view the Board’s determination that DMS and obesity were
    not disabilities for § 1110 purposes. Specifically, Mr. Lar-
    son asserts that in Saunders v. Wilkie, 
    886 F.3d 1356
     (Fed.
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    4                                      LARSON   v. MCDONOUGH
    Cir. 2018), this court considered the legal standard govern-
    ing what constitutes a disability under § 1110 and held
    that the Veterans Court has jurisdiction to review a Board
    determination of the same. Appellant’s Br. 38–39. The gov-
    ernment argues in response that this court held in Wanner
    that review of the meaning of “disability” under § 1110 is
    equivalent to a direct challenge to the rating schedule and
    that Congress intended to include the type of challenge pre-
    sented here in the prohibition against judicial review ex-
    pressed in 
    38 U.S.C. § 7252
    (b). The government further
    argues that Saunders is distinguishable from Mr. Larson’s
    appeal.
    III
    A
    We begin with the relevant statutory provisions.
    
    38 U.S.C. § 1110
     sets forth the basic entitlement for veter-
    ans’ disability benefits:
    For disability resulting from personal injury suf-
    fered or disease contracted in line of duty, or for ag-
    gravation of a preexisting injury suffered or disease
    contracted in line of duty, in the active military, na-
    val, or air service, during a period of war, the
    United States will pay to any veteran thus disabled
    and who was discharged or released under condi-
    tions other than dishonorable from the period of
    service in which said injury or disease was in-
    curred, or preexisting injury or disease was aggra-
    vated, compensation as provided in this
    subchapter.
    
    38 U.S.C. § 1110
     (1998).
    
    38 U.S.C. § 7252
     establishes the exclusive jurisdiction
    of the Veterans Court to review decisions of the Board.
    However, the Veterans Court “may not review the schedule
    of ratings for disabilities adopted under § 1155 of this title
    or any action of the Secretary in adopting or revising that
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    LARSON   v. MCDONOUGH                                       5
    schedule.” § 7252(b). The legislative history of the Veter-
    ans’ Judicial Review Act, which created the Veterans
    Court, adds further context to this jurisdictional limitation.
    Senate Report 100-418 explains that, under the restriction,
    a “court would not be permitted to direct or otherwise order
    that any part of a disability rating schedule issued or
    adopted by the Administrator be modified.” S. Rep. 100-418
    at 53 (1988). House Report 100-963 similarly notes that the
    prohibition was prompted by “apprehension . . . that the
    VA schedule for rating disabilities . . . would be destroyed
    by piecemeal review of individual rating classifications.”
    H.R. Rep. 100-963 at 28 (1988). Thus, “[t]he language in
    the legislative history is not limited to the percentages of
    the disability ratings, . . . but matches the statutes in
    broadly precluding judicial review of the contents of the
    disability rating schedule in toto.” Wanner, 
    370 F.3d at 1130
    .
    The question before us is therefore narrow: Does a
    Board decision concerning what constitutes a disability un-
    der § 1110 necessarily implicate the content of the rating
    schedule and thus trigger § 7252(b)’s restriction on the Vet-
    erans Court’s jurisdiction?
    B
    We next turn to our precedent interpreting § 1110 and
    the prohibition against judicial review of the rating sched-
    ule.
    The government argues that this court held in Wanner
    that a challenge to a Board determination of what consti-
    tutes a disability under § 1110 is “‘indistinguishable’ from
    ‘direct review of the content of the rating schedule.’” Appel-
    lee’s Br. 19 (quoting Wanner, 
    370 F.3d at 1131
    ). We disa-
    gree. In Wanner, the veteran “sought a compensable rating
    because of an increase in the severity of his Tinnitus.”
    
    370 F.3d at 1126
    . The VA maintained the non-compensable
    or zero percent rating for his tinnitus because the relevant
    Diagnostic Code, DC 6260, required that, to receive a
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    6                                      LARSON   v. MCDONOUGH
    compensable rating, the tinnitus be a symptom of “head in-
    jury, concussion, or acoustic trauma.” 
    Id.
     The Veterans
    Court addressed the merits of the veteran’s claim and con-
    cluded that the trauma requirement of DC 6260 was inva-
    lid because it conflicted with § 1110. This court reversed,
    holding that the Veterans Court lacked jurisdiction to re-
    view the content of the rating schedule. Id. at 1129–30. The
    government argues that Wanner therefore stands for the
    proposition that the Veterans Court is without jurisdiction
    to review “what should be considered a disability,” includ-
    ing for § 1110 purposes. Appellee’s Br. 7. But Wanner un-
    ambiguously involved a direct challenge to the content of
    the rating schedule: the Veterans Court had invalidated
    the trauma requirement of DC 6260. See also Wingard,
    779 F.3d at 1356 (holding that the Veterans Court did not
    have jurisdiction over a challenge to the contents of the rat-
    ing schedule adopted by the Secretary). To the extent that
    Wanner involved a challenge to the meaning of “disability,”
    it did so in the narrow context of how a ratable disability
    was defined by a specific Diagnostic Code. Section 1110
    was only implicated in Wanner because the Veterans Court
    had invalidated a provision of the rating schedule as incon-
    sistent with § 1110. See 
    370 F.3d at
    1127–28.
    The government further contends that even if our hold-
    ing in Wanner is confined to its context, we should none-
    theless extend that holding now because, based on the
    statutory scheme, “review of what constitutes a § 1110 dis-
    ability is no different from review of what is entitled to a
    § 1155 disability rating—which directly implicates the con-
    tent of the rating schedule.” Appellee’s Br. 19. Again, we
    disagree. We can find no statutory requirement—and the
    government points to none—that if the VA (or the Board or
    the Veterans Court) determines that a condition not listed
    on the rating schedule constitutes a disability under
    § 1110, it must modify the rating schedule. And there are
    potential ancillary benefits to which a veteran with an un-
    ratable service-connected disability would be entitled that
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    LARSON   v. MCDONOUGH                                        7
    are unrelated to any compensation contemplated by the
    rating schedule, including priority access to VA health
    care, 
    38 U.S.C. § 1710
    (a)(1)(A), and preference in federal
    hiring, 
    5 U.S.C. §§ 3309
    , 2108. See Amicus Br. 22 (listing
    ancillary benefits). Thus, reviewing a determination by the
    Board that a claimed condition does not constitute a disa-
    bility under § 1110, by itself, leaves the rating schedule un-
    disturbed.
    In Saunders, we specifically held that the Veterans
    Court can review what constitutes a disability. There, the
    Veterans Court affirmed a Board decision holding that a
    veteran’s knee pain, “absent a specific diagnosis or other-
    wise identified disease or injury, cannot constitute a disa-
    bility under 
    38 U.S.C. § 1110
    .” Saunders, 886 F.3d at 1358.
    This court reversed, holding that the Veterans Court had
    applied the wrong legal standard in determining that, for
    an ailment to constitute a disability under § 1110, it must
    be accompanied by a “diagnosis or identifiable condition.”
    Id. at 1368. Instead, this court held that the legal definition
    governing the term “disability” as used in § 1110 was “the
    functional impairment of earning capacity, not the under-
    lying cause of said disability.” Id. at 1363. Whether the Vet-
    erans Court had jurisdiction to review that Board
    determination in light of § 7252(b) was not raised in that
    appeal. See id. Nonetheless, Saunders articulated a defini-
    tion of “disability” for § 1110 purposes that is distinct from
    and not coextensive with disabilities listed on the rating
    schedule.
    IV
    Having established that this court’s holdings in Wan-
    ner and Wingard are distinct from and not in conflict with
    Saunders, the question before us becomes whether
    Mr. Larson’s appeal is a challenge to the content of the rat-
    ing schedule, as in Wanner and Wingard, or whether he
    seeks review of the Board’s determination of what consti-
    tutes a disability for § 1110 purposes only, as in Saunders.
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    8                                     LARSON   v. MCDONOUGH
    Although knee pain, DMS, and obesity can relate to ratable
    disabilities, they do not appear as independent disabilities
    on the rating schedule. Mr. Larson, like the veteran in
    Saunders and distinct from the veterans in Wanner and
    Wingard, seeks only to establish service connection for his
    conditions under § 1110 and is not asking the Veterans
    Court to invalidate or revise any portion of the rating
    schedule. Accordingly, we conclude that Mr. Larson’s case
    is analogous to Saunders.
    Because Saunders controls the outcome of this appeal,
    we hold that the Veterans Court legally erred when it de-
    termined that it lacked jurisdiction to review the Board’s
    denial of Mr. Larson’s claim for service connection for DMS
    and obesity. Section 7252(b)’s restriction of the Veterans
    Court’s jurisdiction is not implicated where, as here, a vet-
    eran seeks only to establish that her conditions are service-
    connected disabilities for § 1110 purposes. Mr. Larson does
    not ask the Veterans Court to invalidate or modify a por-
    tion of the rating schedule, nor does he ask the Veterans
    Court to order the VA to assign him a rating for a condition
    inconsistent with the rating schedule. Cf. Wingard,
    779 F.3d at 1356–57 (explaining that the Veterans Court
    lacked jurisdiction over a challenge to a regulation creating
    a “zero-percent” disability rating). Thus, the Veterans
    Court is not prohibited from reviewing Mr. Larson’s appeal
    of the Board’s determination that DMS and obesity were
    not disabilities under § 1110. 1
    1   We need not discuss at this juncture whether DMS
    or obesity are properly considered disabilities for § 1110
    purposes under Saunders, nor whether Mr. Larson’s DMS
    and obesity—should they be deemed disabilities—are con-
    nected to his service. These determinations must be made
    by the VA in the first instance.
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    LARSON   v. MCDONOUGH                                      9
    V
    We have considered the parties’ remaining arguments
    and find them unpersuasive. Because we agree with
    Mr. Larson that 
    38 U.S.C. § 7252
    (b) does not bar the Vet-
    erans Court from reviewing a Board determination of what
    constitutes a disability for purposes of 
    38 U.S.C. § 1110
    , we
    reverse that portion of the Veterans Court’s decision and
    remand for further proceedings consistent with this opin-
    ion.
    REVERSED AND REMANDED
    

Document Info

Docket Number: 20-1647

Filed Date: 8/26/2021

Precedential Status: Precedential

Modified Date: 8/26/2021