Kernea v. Shinseki ( 2013 )


Menu:
  •   United States Court of Appeals
    for the Federal Circuit
    ______________________
    FLORA L. KERNEA,
    Claimant-Appellant,
    v.
    ERIC K. SHINSEKI, Secretary of Veterans Affairs,
    Respondent-Appellee.
    ______________________
    2012-7142
    ______________________
    Appeal from the United States Court of Appeals for
    Veterans Claims in No. 10-2658, Chief Judge Bruce E.
    Kasold.
    ______________________
    Decided: August 1, 2013
    ______________________
    WILLIAM S. FOSTER, JR., BAKER BOTTS, LLP, of Wash-
    ington, DC, argued for claimant-appellant.
    ALLISON KIDD-MILLER, Senior Trial Counsel, Com-
    mercial Litigation Branch, Civil Division, United States
    Department of Justice, of Washington, DC, argued for
    respondent-appellee. With her on the brief were STUART
    F. DELERY, Principal Deputy Assistant Attorney General,
    JEANNE E. DAVIDSON, Director, and MARTIN F. HOCKEY,
    JR., Assistant Director. Of counsel on the brief were
    DAVID J. BARRANS, Deputy Assistant General Counsel and
    2                                 FLORA KERNEA   v. SHINSEKI
    MARTIE ADELMAN, Attorney, United States Department of
    Veterans Affairs, of Washington, DC.
    ______________________
    Before NEWMAN, DYK, and PROST, Circuit Judges.
    PROST, Circuit Judge.
    Flora L. Kernea appeals from a decision of the U.S.
    Court of Appeals for Veterans Claims (“Veterans Court”),
    which affirmed a decision of the Board of Veterans’ Ap-
    peals (“Board”) denying Ms. Kernea’s claim for enhanced
    dependency and indemnity compensation under 38 U.S.C.
    § 1311(a)(2). We affirm.
    I. BACKGROUND
    Ms. Kernea is the widow of Donald E. Kernea, a vet-
    eran of World War II who was honorably discharged from
    the Navy in April 1945 after being diagnosed with diabe-
    tes mellitus. At the time of his discharge, the Department
    of Veterans Affairs (“VA”) found Mr. Kernea’s diabetes to
    be service-connected and awarded him monthly payments
    based on a disability rating of 40%.
    Beginning in 1950, and continuing for the next couple
    of decades, Mr. Kernea was hospitalized at various times
    as he suffered complications and declining health as a
    result of his diabetes. On multiple occasions, Mr. Kernea
    requested increases in his disability rating and payments,
    but his requests were denied. In April 1961, the Tennes-
    see VA Regional Office again denied a request to increase
    Mr. Kernea’s disability rating. In June 1961, however,
    the Director of the Compensation and Pension Service
    found “clear and unmistakable error” in the Regional
    Office’s decision and increased Mr. Kernea’s disability
    rating to 60%, effective March 14, 1961. Ultimately, Mr.
    Kernea’s disability rating was increased to 100%, effective
    December 13, 1965.
    FLORA KERNEA   v. SHINSEKI                               3
    Mr. Kernea died on February 23, 1969 as a result of
    complications from his service-connected diabetes. Ms.
    Kernea, who had been married to Mr. Kernea since 1953,
    applied for dependency and indemnity compensation
    (“DIC benefits”) under 38 U.S.C. § 1310, which provides
    DIC benefits to survivors of a veteran who died from a
    service-connected or compensable disability. Ms. Kernea’s
    request was granted in April 1969.
    In June 2003, Ms. Kernea filed a claim under 38
    U.S.C. § 1311(a)(2), which provides that a veteran’s
    surviving spouse may qualify for increased DIC benefits if
    the veteran received “or was entitled to receive . . . com-
    pensation for a service-connected disability that was rated
    totally disabling for a continuous period of at least eight
    years immediately preceding death.” 
    Id. (emphasis add- ed).
    When Mr. Kernea died in 1969, he had been rated
    totally disabled for less than four years. Nevertheless,
    Ms. Kernea’s claim stated: “I request the VA grant me the
    additional $204.00[1] Eight year rule. The above veteran
    was 100% for over 8 years and I was married to him for
    over 8 years.” J.A. 351. The VA denied Ms. Kernea’s
    claim on July 3, 2003.
    In the ensuing years, Ms. Kernea pursued her claim
    on appeal, first to the Board, then to the Veterans Court,
    and later on remand from the Veterans Court to the
    Board. In those proceedings, Ms. Kernea advanced two
    separate theories to support her claim that Mr. Kernea
    was “entitled to receive” a 100% disability rating for at
    least the last eight years of his life, as required by
    § 1311(a)(2). First, she claimed clear and unmistakable
    1    Congress has amended § 1311(a)(2) through the
    years to adjust the amount of increased DIC benefits.
    When Ms. Kernea filed her claim in 2003, the statutory
    amount was $204 per month. The current version of the
    statute provides for an increase of $246 per month.
    4                                 FLORA KERNEA   v. SHINSEKI
    error (“CUE”) in the VA’s disability rating decisions made
    during Mr. Kernea’s lifetime. Second, she sought to
    substantiate her claim based on a “hypothetical entitle-
    ment” theory—i.e., by demonstrating, on a hypothetical
    basis and without regard to claim dispositions during his
    lifetime, that Mr. Kernea was totally disabled for at least
    the last eight years of his life.
    On July 15, 2010, the Board affirmed the VA’s denial
    of Ms. Kernea’s claim. Regarding her CUE claim, the
    Board found that Ms. Kernea had “not identified a specific
    error, or even a specific rating decision, that she believes
    contains CUE.” J.A. 117. Nor had she “provided any
    reasons explaining why the result of an unidentified final
    rating decision would have been manifestly different but
    for the alleged error.” 
    Id. Concluding that Ms.
    Kernea’s
    only argument in support of her CUE claim consisted of
    “bare statements that the Veteran should have been rated
    as 100 percent disabled at an earlier date,” the Board
    denied her CUE claim without prejudice. J.A. 118.
    As for Ms. Kernea’s hypothetical entitlement claim,
    the Board found that it was barred by 38 C.F.R.
    § 3.10(f)(3), a regulation promulgated by the VA in 2005
    that interpreted the phrase “entitled to receive” in
    § 1311(a)(2) as prohibiting hypothetical entitlement
    claims. In reaching this conclusion, the Board considered
    whether the application of § 3.10(f)(3) to Ms. Kernea’s
    June 2003 claim was unlawfully retroactive. The Board
    analyzed this question using the retroactivity analysis set
    forth in Princess Cruises, Inc. v. United States, 
    397 F.3d 1358
    (Fed. Cir. 2005). In Princess Cruises, we relied on
    the Supreme Court’s opinion in Landgraf v. USI Film
    Products, 
    511 U.S. 244
    (1994), to identify three factors for
    determining whether applying an agency’s newly-issued
    regulation or ruling to conduct predating its issuance
    “would have retroactive effect,” and therefore be presump-
    tively improper. See 
    id. at 1362, 1364.
    The three factors
    are: (1) “the nature and extent of the change of the law”;
    FLORA KERNEA   v. SHINSEKI                                 5
    (2) “the degree of connection between the operation of the
    new rule and a relevant past event”; and (3) “familiar
    considerations of fair notice, reasonable reliance, and
    settled expectations.” Princess 
    Cruises, 397 F.3d at 1364
    (internal quotation marks omitted).         Applying these
    factors to this case, the Board determined that: (1) the
    change in the law effected by § 3.10(f)(3) was not substan-
    tial because the regulation’s interpretation of “entitled to
    receive” was consistent with, and merely clarified, the
    VA’s interpretation of that phrase; (2) there was no indi-
    cation that Ms. Kernea relied on the prior interpretation
    of § 1311(a)(2) to her detriment, or that she would have
    acted differently had the law not been changed; and
    (3) Ms. Kernea had fair notice of the change in law, could
    not have had “settled expectations” of the law, and could
    not have relied on the theory of hypothetical entitlement
    when she filed her claim because it had been the VA’s
    “consistent policy to not allow this approach.” J.A. 124-
    25.     The Board therefore concluded that applying
    § 3.10(f)(3) to Ms. Kernea’s claim did not have “an unlaw-
    ful retroactive effect.” J.A. 125.
    After concluding that § 3.10(f)(3) applied retroactively
    to bar Ms. Kernea’s reliance on a theory of hypothetical
    entitlement, the Board analyzed her claim solely on the
    basis of the disability ratings made during Mr. Kernea’s
    lifetime. Because Mr. Kernea was not assigned a 100%
    disability rating until December 13, 1965, and he died less
    than four years later on February 23, 1969, he was not
    rated 100% disabled for “at least eight years immediately
    preceding death.” § 1311(a)(2). Accordingly, the Board
    denied Ms. Kernea’s claim for increased DIC benefits.
    Ms. Kernea appealed to the Veterans Court, which af-
    firmed the Board in a single-judge decision on March 14,
    2012. The decision affirmed the Board’s conclusion that
    Ms. Kernea could not substantiate her claim for enhanced
    DIC benefits through the hypothetical entitlement theory,
    explaining that “the Board’s findings of fact are plausible
    6                                 FLORA KERNEA   v. SHINSEKI
    and not clearly erroneous, and the Board properly applied
    the Princess Cruises criteria when determining that
    § 3.10(f)(3) could be applied retroactively.” J.A. 6. The
    decision also affirmed the Board’s dismissal of Ms. Ker-
    nea’s motion for revision based on CUE, finding that “the
    only statement in the record she identifie[d] as raising
    CUE merely asserts that her husband ‘was entitled to the
    whole eight years’ of benefits, a statement that posits no
    specific assertion of error.” 
    Id. Following a motion
    for reconsideration by Ms. Kernea,
    a panel of the Veterans Court affirmed its prior decision
    and entered final judgment on May 30, 2012. See J.A. 1-
    3. Ms. Kernea appealed to this court.
    II. DISCUSSION
    A
    The first issue Ms. Kernea raises on appeal is the de-
    nial of her claim for enhanced DIC benefits based on the
    hypothetical entitlement theory. Hypothetical entitle-
    ment claims, also referred to as “new claims,” would
    permit the Board to adjudicate a claim for DIC benefits on
    a hypothetical basis, “without regard to claim filing or
    claim dispositions during the veteran’s lifetime.” Nat’l
    Org. of Veterans’ Advocates, Inc. v. Sec’y of Veterans
    Affairs, 
    314 F.3d 1373
    , 1377 (Fed. Cir. 2003) (“NOVA II”).
    In other words, the Board could make a “de novo determi-
    nation of the veteran’s disability, upon the entirety of the
    record including any new evidence presented by the
    surviving spouse.” Hix v. Gober, 
    225 F.3d 1377
    , 1380-81
    (Fed. Cir. 2000).
    The permissibility of hypothetical entitlement claims
    under § 1311(a)(2) has changed in recent years. In 2000,
    in our opinion in Hix, we held—on the basis of VA regula-
    tions that were in effect at the time—that hypothetical
    entitlement claims were allowed under § 1311(a)(2). 
    Id. However, the VA
    later interpreted the phrase “entitled to
    FLORA KERNEA   v. SHINSEKI                                7
    receive” as prohibiting hypothetical entitlement claims,
    and we affirmed that interpretation in January 2003 in
    our opinion in NOVA 
    II. 314 F.3d at 1378
    . We found that
    the VA nevertheless had not adequately revised the
    implementing regulations for § 1311(a)(2) and therefore
    required the VA to conduct further rulemaking proceed-
    ings. See 
    id. at 1381-82. As
    a result of our decision in
    NOVA II, the VA promulgated 38 C.F.R. § 3.10(f)(3),
    which again interpreted the phrase “entitled to receive” in
    § 1311(a)(2) as prohibiting hypothetical entitlement
    claims. See Dependency and Indemnity Compensation:
    Surviving Spouse’s Rate; Payments Based on Veteran’s
    Entitlement to Compensation for Service-Connected
    Disability Rated Totally Disabling for Specified Periods
    Prior to Death, 70 Fed. Reg. 72,211 (Dec. 2, 2005). The
    new regulation was effective December 2, 2005, and it
    applied to new claims for enhanced DIC benefits as well
    as claims pending before the VA on that date. 
    Id. at 72,212. We
    sustained the VA’s promulgation of
    § 3.10(f)(3) in National Organization of Veterans’ Advo-
    cates, Inc. v. Secretary of Veterans Affairs, 
    476 F.3d 872
    ,
    877 (Fed. Cir. 2007).
    This case requires us to determine whether the
    amended regulation, 38 C.F.R. § 3.10(f)(3), can be applied
    retroactively to bar claims such as Ms. Kernea’s that had
    already been filed before the amended regulation took
    effect. This is the first time we have addressed whether
    § 3.10(f)(3) should be given retroactive effect to a
    § 1311(a)(2) claim filed before the rule became effective.
    However, we have previously addressed this issue with
    respect to 38 U.S.C. § 1318, a statute that, like
    § 1311(a)(2), provides for certain DIC benefits if a veteran
    received or was “entitled to receive” compensation for a
    service-connected disability that was rated totally disa-
    bling for a certain amount of time immediately preceding
    death. See Tarver v. Shinseki, 
    557 F.3d 1371
    (Fed. Cir.
    2009); Rodriguez v. Peake, 
    511 F.3d 1147
    (Fed. Cir. 2008).
    8                                 FLORA KERNEA   v. SHINSEKI
    In Rodriguez and Tarver, we addressed a rule, codified at
    38 C.F.R. § 3.22, that the VA promulgated in 2000 in
    response to decisions of the Veterans Court interpreting
    the phrase “entitled to receive” in § 1318 as permitting
    hypothetical entitlement claims. The VA’s new rule had
    the effect of reinterpreting § 1318 to prohibit hypothetical
    entitlement claims. See Tarver, 1373-74. In Rodriguez
    and Tarver, we applied the three-part test outlined in
    Princess Cruises to determine that § 3.22 could be applied
    retroactively to bar § 1318 claims based on a hypothetical
    entitlement theory. See 
    Rodriguez, 511 F.3d at 1156
    (finding that all three Princess Cruises factors weighed in
    favor of retroactive application of § 3.22, as amended in
    2000, to claims for DIC benefits filed by survivors before
    the amendment took effect); 
    Tarver, 557 F.3d at 1374-77
    (finding that retroactive application of § 3.22 was permis-
    sible in a case “distinguishable from Rodriguez only in
    that [the claimant] filed her DIC claim after”—not be-
    fore—the Veterans Court’s decision interpreting § 1318 as
    permitting hypothetical entitlement claims).
    As in Rodriguez and Tarver, we will use the three-
    part test from Princess Cruises to determine whether
    § 3.10(f)(3) should be given retroactive effect to bar Ms.
    Kernea’s      hypothetical  entitlement     claim    under
    § 1311(a)(2).
    1
    The first Princess Cruises factor is “the nature and ex-
    tent of the change in the law.” Princess 
    Cruises, 397 F.3d at 1364
    (internal quotation marks omitted). Ms. Kernea
    contends that at the time she filed her claim in 2003, the
    VA’s long-standing regulations, as we interpreted them
    in our 2000 opinion in Hix v. Gober, permitted hypothet-
    ical entitlement claims under § 1311(a)(2). See 
    Hix, 225 F.3d at 1380-81
    (holding that 38 C.F.R. § 20.1106, as then
    worded, was “dispositive of the interpretation of 38 U.S.C.
    § 1311,” and “require[d] de novo determination of the
    FLORA KERNEA   v. SHINSEKI                                 9
    veteran’s disability, upon the entirety of the record includ-
    ing any new evidence presented by the surviving spouse”);
    see also Nat’l Org. of Veterans’ Advocates, Inc. v. Sec’y of
    Veterans Affairs, 
    260 F.3d 1365
    , 1370 (Fed. Cir. 2001)
    (recognizing Hix’s holding that hypothetical entitlement
    claims were permitted under § 1311(a)(2)). Ms. Kernea
    argues that because § 3.10(f)(3), promulgated two years
    after she filed her claim, would prohibit her claim, the
    change in the law “has been significant; indeed, it has
    been total.” Appellant’s Br. 22.
    We disagree with Ms. Kernea’s characterization of the
    state of the law when she filed her claim in 2003. At that
    time, the VA had already taken steps to overturn the
    result in Hix. More specifically, the VA amended a regu-
    lation—38 C.F.R. § 20.1106—that we relied on in reach-
    ing our conclusion in Hix. At the time of our decision in
    Hix, § 20.1106 provided that “[e]xcept with respect to
    benefits under the provisions of 38 U.S.C. 1318 . . . ,
    issues involved in a survivor’s claim for death benefits
    will be decided without regard to any prior disposition of
    those issues during the veteran’s lifetime.” 38 C.F.R.
    § 20.1106. We reasoned in Hix that because the regula-
    tion specifically excluded § 1318 but failed to mention
    § 1311, the regulation permitted hypothetical entitlement
    claims under § 1311 but not under § 1318. 
    Hix, 225 F.3d at 1380.2
    By the time Ms. Kernea filed her claim in 2003,
    however, the VA had amended § 20.1106 to explicitly
    refer to § 1311 and thereby bring the interpretation of
    2   The implementing regulation for § 1318 was con-
    sistent with this interpretation, with the VA having
    amended § 3.22 earlier in 2000 to prohibit hypothetical
    entitlement claims under § 1318. See DIC Benefits for
    Survivors of Certain Veterans Rated Totally Disabled at
    Time of Death, 65 Fed. Reg. 3388 (Jan. 21, 2000). The VA
    had not yet revised the implementing regulation for
    § 1311.
    10                                FLORA KERNEA   v. SHINSEKI
    § 1311(a)(2) in line with that of § 1318.3 Indeed, in our
    opinion in NOVA II in early 2003, we analyzed the VA’s
    amendment to § 20.1106 and held that the VA “could
    properly construe the ‘entitled to receive’ language of
    §§ 1311(a)(2) and 1318 in the same way.” NOVA 
    II, 341 F.3d at 1378
    . We further held that the VA “could proper-
    ly construe the language of the two sections to bar the
    filing of new claims” (i.e., hypothetical claims) and that
    the VA had “adequately explained that decision.” 
    Id. Thus, by the
    time Ms. Kernea filed her claim later in
    2003, we had already affirmed the VA’s decision to rein-
    terpret § 1311(a)(2) as prohibiting hypothetical entitle-
    ment claims.
    We recognize that the VA still had more work to do af-
    ter our NOVA II opinion. More specifically, in NOVA II,
    we faulted the VA for failing to amend the implementing
    regulations for § 1311(a)(2) to make them consistent with
    38 C.F.R. § 3.22, the regulation implementing § 1318. See
    
    id. at 1377, 1381.
    We remanded for further rulemaking
    proceedings so that the VA could harmonize the imple-
    menting regulations for §§ 1311(a)(2) and 1318. 
    Id. at 1381. This
    is what led the VA to promulgate § 3.10(f)(3),
    which included “a definition of the phrase ‘entitled to
    receive’ that . . . parallel[ed] the definition set forth in
    § 3.22(b).” 70 Fed. Reg. 72,211, 72,212 (Dec. 2, 2005).
    3  As amended, § 20.1106 provided that “[e]xcept
    with respect to benefits under the provisions of 38 U.S.C.
    1311(a)(2) [and] 1318, . . . issues involved in a survivor’s
    claim for death benefits will be decided without regard to
    any prior disposition of those issues during the veteran’s
    lifetime.” Board of Veterans’ Appeals Rules of Practice:
    Claim for Death Benefits by Survivor, 67 Fed. Reg.
    16,309, 16,317 (Apr. 5, 2002) (to be codified at 38 C.F.R.
    § 20.1106) (emphasis added to indicate revision in text).
    FLORA KERNEA   v. SHINSEKI                              11
    Despite our remand in NOVA II for further rulemak-
    ing proceedings, it was apparent at the time that hypo-
    thetical entitlement claims would no longer be allowed
    under § 1311(a)(2). In fact, in NOVA II, we instructed the
    VA to “continue to process claims for survivor benefits
    that would be rejected because they are based on the
    filing of new claims after the veteran’s death, since we
    have found that the Department’s interpretation of the
    statute as barring such claims to be permissible and
    reasonable, and assume that that view will be reflected in
    a new regulation under § 1311(a)(2).” NOVA 
    II, 341 F.3d at 1381
    . Therefore, the first Princess Cruises factor
    weighs in favor of retroactive application of § 3.10(f)(3).
    2
    The second Princess Cruises factor is “the degree of
    connection between the operation of the new rule and a
    relevant past event.” Princess 
    Cruises, 397 F.3d at 1365
    (internal quotation marks omitted). In laying out this
    factor, we explained that “not only must a new rule effect
    a significant change in the law, but this change must also
    have a significant connection with past events.” 
    Id. at 1365-66. Thus,
    if a change in the law “meaningfully
    alter[s] the consequences of relevant past events,” it will
    weigh against retroactive application of the law. Rodri-
    
    guez, 511 F.3d at 1155
    .
    Princess Cruises provides an example of when this
    factor will weigh against retroactive application of a new
    rule. In that case, a new U.S. Customs rule required that
    cruise lines collect data concerning which passengers
    disembarked or boarded at certain ports, and the new rule
    created an evidentiary presumption to be applied when a
    cruise line could not provide the data. Princess 
    Cruises, 397 F.3d at 1360
    . We found that the new rule had a
    significant connection with past events because before the
    rule, the cruise lines understood “that they had no need to
    create such data,” and by failing to collect the newly
    12                                 FLORA KERNEA   v. SHINSEKI
    required data, the cruise lines would “forever and com-
    pletely be unable to rebut the evidentiary presumption.”
    
    Id. at 1366. In
    contrast, in Rodriguez and Tarver, we found that
    the amendment of 38 C.F.R. § 3.22 to prohibit hypothet-
    ical entitlement claims under § 1318 did not have a signif-
    icant connection with past events. See 
    Tarver, 557 F.3d at 1375-76
    ; Rodri
    guez, 511 F.3d at 1155
    . For example, in
    Tarver, we explained:
    Like the claimant in Rodriguez, Mrs. Tarver is
    “unable to point to anything she would have done
    differently had she known the effect of the 2000
    amendment when she filed her 
    claim.” 511 F.3d at 1155
    . In order to prevail on her claim for sec-
    tion 1318(b) benefits, Mrs. Tarver had to demon-
    strate that her husband had a service-connected
    disability that was rated totally disabling for the
    10 years immediately preceding his death. Mrs.
    Tarver does not seriously dispute the DVA’s as-
    sertion that there is nothing she (or her husband)
    could have done between 1997, when [the Veter-
    ans Court’s opinion permitting hypothetical enti-
    tlement claims under § 1318] was decided, and
    2000, when the Secretary amended rule 3.22, that
    would have affected her eligibility for DIC bene-
    fits. If Mrs. Tarver's husband had known of the
    impending rule change when he filed his applica-
    tion for disability benefits, he might have brought
    his claim earlier or prosecuted it more vigorously
    in the first instance. But, of course, Mrs. Tarver’s
    husband had no settled expectation of success on a
    hypothetical entitlement approach prior to the
    Veterans Court’s first pronouncement on that is-
    sue in 1997. Accordingly, Mr. Tarver’s failure to
    conform his conduct to the requirements of
    amended rule 3.22 cannot be attributed to the
    change in the law occasioned by that rule.
    FLORA KERNEA   v. SHINSEKI                                13
    
    Tarver, 557 F.3d at 1375-76
    .
    Just as in Rodriguez and Tarver, there is nothing Ms.
    Kernea could have done differently had she known the
    effect of the 2005 amendment when she filed her claim.
    The relevant conduct here took place in the 1960s—
    decades before § 1311(a)(2) was even enacted—when her
    husband filed his disability claims. In theory, Ms. Ker-
    nea’s husband might have filed his disability claim “earli-
    er or prosecuted it more vigorously in the first instance,”
    
    id. at 1375, if
    he had known that hypothetical entitlement
    claims would be disallowed. But because he filed his
    claims decades before Congress enacted § 1311(a)(2),
    before this court decided Hix, and before the VA promul-
    gated § 3.10(f)(3), his “failure to conform his conduct to
    the requirements of amended rule [3.10(f)(3)] cannot be
    attributed to the change in the law occasioned by that
    rule.” 
    Id. at 1376. Therefore,
    like in Rodriguez and
    Tarver, we find that the second Princess Cruises factor
    weighs in favor of applying § 3.10(f)(3) retroactively.
    3
    Finally, the third Princess Cruises factor requires us
    to take into account “familiar considerations of fair notice,
    reasonable reliance, and settled expectations.” Princess
    
    Cruises, 397 F.3d at 1366
    (internal quotation marks
    omitted). Thus, where the state of the law is already
    moving against a claimant’s position at the time he or she
    files a claim, logically, the considerations relevant to the
    first factor will also be relevant to this factor.
    As we have detailed above, it was already apparent
    when Ms. Kernea filed her claim in 2003 that hypothet-
    ical entitlement claims would no longer be permitted
    under § 1311(a)(2). Specifically, by that time, we had
    already affirmed the VA’s ability to interpret § 1311(a)(2)
    as prohibiting hypothetical entitlement claims.        See
    NOVA 
    II, 314 F.3d at 1378
    . The only thing left for the VA
    14                                 FLORA KERNEA   v. SHINSEKI
    to do was to revise the implementing regulations for
    § 1311(a)(2). See 
    id. at 1381. Under
    these circumstances, Ms. Kernea must be
    deemed to have had fair notice that her hypothetical
    entitlement claim might be disallowed. In addition,
    because the VA had already amended the regulation that
    provided the basis for our opinion in Hix, “any expectation
    that the statutory interpretation set forth in [Hix] was not
    subject to change would have been objectively unreasona-
    ble.” 
    Tarver, 557 F.3d at 1376
    . Therefore, we conclude
    that the third factor weighs against Ms. Kernea’s position.
    For these reasons, we find that all three of the Prin-
    cess Cruises factors weigh in favor of applying § 3.10(f)(3)
    retroactively to prohibit Ms. Kernea’s hypothetical enti-
    tlement claim. We therefore affirm the denial of her
    claim for enhanced DIC benefits based on the hypothet-
    ical entitlement theory.
    B
    In the alternative, Ms. Kernea challenges the dismis-
    sal of her CUE claim for failure to identify a specific error
    or a rating decision that she believes contains CUE.
    According to Ms. Kernea, the record demonstrates that
    she raised a valid CUE claim. Specifically, she contends
    that “a cursory reading of the record, supplemented by the
    VA’s obligation to construe pro se pleadings sympatheti-
    cally, would demonstrate that Ms. Kernea previously
    objected to at least the VA rating decision in 1961, a
    decision in which the VA has already acknowledged
    CUE.” Appellant’s Br. 33. The government counters that
    we lack jurisdiction to review whether Ms. Kernea raised
    a valid CUE claim because it raises a factual matter that
    is outside our appellate jurisdiction.
    We agree with the government that we lack jurisdic-
    tion to consider whether Ms. Kernea raised a valid CUE
    claim. Under 38 U.S.C. § 7292(a), this court has jurisdic-
    FLORA KERNEA   v. SHINSEKI                                15
    tion to review a decision of the Veterans Court “with
    respect to the validity of a decision of the Court on a rule
    of law or of any statute or regulation . . . or any interpre-
    tation thereof . . . that was relied on by the Court in
    making the decision.” Absent a constitutional issue, this
    court “may not review (A) a challenge to a factual deter-
    mination, or (B) a challenge to a law or regulation as
    applied to the facts of a particular case.” 38 U.S.C.
    § 7292(d)(2). We have previously held that the interpre-
    tation of the contents of a claim for benefits is a factual
    issue over which we do not have jurisdiction. Ellington v.
    Peake, 
    541 F.3d 1364
    , 1371-72 (Fed. Cir. 2008). Here, Ms.
    Kernea’s appeal of her CUE claim would require us to
    review and interpret the contents of her claim. Therefore,
    under our jurisdictional statute and precedent, we lack
    jurisdiction to revisit the Veterans Court’s decision that
    Ms. Kernea failed to raise a valid CUE claim.
    III. CONCLUSION
    For the foregoing reasons, the judgment of the Veter-
    ans Court is affirmed.
    AFFIRMED
    COSTS
    Each party shall bear its own costs.