Reeves v. McDonald , 603 F. App'x 956 ( 2015 )


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  •        NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    MARY REEVES,
    Claimant-Appellant
    v.
    ROBERT A. MCDONALD,
    SECRETARY OF VETERANS AFFAIRS,
    Respondent-Appellee
    ______________________
    2014-7032
    ______________________
    Appeal from the United States Court of Appeals for
    Veterans Claims in No. 08-1951, Judge Alan G. Lance Sr.
    ______________________
    Decided: February 25, 2015
    ______________________
    KENNETH M. CARPENTER, Law Offices of Carpenter
    Chartered, Topeka, Kansas, for claimant-appellant.
    ELIZABETH MARIE HOSFORD, Commercial Litigation
    Branch, Civil Division, United States Department of
    Justice, Washington, DC, for respondent-appellee. Also
    represented by STUART F. DELERY, ROBERT E. KIRSCHMAN,
    JR., MARTIN F. HOCKEY, JR.; Y. KEN LEE, RACHAEL BRANT,
    Office of General Counsel, United States Department of
    Veterans Affairs, Washington, DC.
    2                                      REEVES   v. MCDONALD
    ______________________
    Before PROST, Chief Judge, BRYSON, and WALLACH, Cir-
    cuit Judges.
    PER CURIAM.
    This is an appeal from a decision of the Court of Ap-
    peals for Veterans Claims (“the Veterans Court”), denying
    the claimant-appellant’s application for legal fees and
    expenses under the Equal Access to Justice Act (“EAJA”),
    
    28 U.S.C. § 2412
    (d). We reject the appellant’s only claim
    over which we have jurisdiction, and we therefore affirm
    the decision of the Veterans Court.
    I
    In 1981, Corby Reeves filed a claim for service-
    connected disability benefits for bilateral sensorineural
    hearing loss. In 1983, the Board of Veterans’ Appeals
    denied his claim. Mr. Reeves filed an application to
    reopen his claim in 2002 based on new and material
    evidence. The Board subsequently granted his applica-
    tion and awarded him service-connected disability bene-
    fits, with an effective date of June 13, 2002.
    In December 2006, Mr. Reeves filed a motion for revi-
    sion of the 1983 Board decision, claiming that he was
    entitled to an earlier effective date for his award of bene-
    fits. He argued that the 1983 decision contained clear
    and unmistakable error (“CUE”) because the Board had
    failed to apply the combat presumption contained in 
    38 U.S.C. § 1154
    (b). 1 The Board rejected that argument,
    1 Section 1154(b) provides, in pertinent part, that
    for a combat veteran “the Secretary shall accept as suffi-
    cient proof of service-connection of any disease or injury
    alleged to have been incurred in or aggravated by such
    service satisfactory lay or other evidence of service incur-
    REEVES   v. MCDONALD                                       3
    relying in part on its interpretation of the scope of section
    1154(b). The Veterans Court affirmed the Board’s deci-
    sion. On appeal, we reversed the Veterans Court and
    remanded for further proceedings. Reeves v. Shinseki, 
    682 F.3d 988
     (Fed. Cir. 2012).
    Following that appeal, Mary Reeves (Mr. Reeves’ wid-
    ow, who was substituted as the claimant after Mr. Reeves’
    death in February 2011) filed an application for legal fees
    and expenses under EAJA. She argued that she was
    entitled to an award of fees and expenses because she
    prevailed on the merits of her claim, and the govern-
    ment’s position in the litigation was not “substantially
    justified.” See 
    28 U.S.C. § 2412
    (d)(1)(A). The Veterans
    Court held that the government’s position in the case was
    substantially justified and therefore denied Mrs. Reeves’
    application.
    Mrs. Reeves appeals to this court.
    II
    This court has only limited jurisdiction to review deci-
    sions of the Veterans Court. The applicable jurisdictional
    statute, 
    38 U.S.C. § 7292
    , authorizes us to decide “all
    relevant questions of law, including interpreting constitu-
    tional and statutory provisions,” but provides that, except
    to the extent that an appeal presents a constitutional
    issue, we may not review “(A) a challenge to a factual
    rence or aggravation of such injury or disease, if con-
    sistent with the circumstances, conditions, or hardships of
    such service, notwithstanding the fact that there is no
    official record of such incurrence or aggravation in such
    service, and, to that end, shall resolve every reasonable
    doubt in favor of the veteran. Service-connection of such
    injury or disease may be rebutted by clear and convincing
    evidence to the contrary.”
    4                                       REEVES   v. MCDONALD
    determination, or (B) a challenge to a law or regulation as
    applied to the facts of a particular case.” 
    Id.
     § 7292(d)(2).
    In light of the limits on our reviewing authority, we
    generally do not have jurisdiction to review the Veterans
    Court’s determination in an EAJA case that the govern-
    ment’s litigation position was substantially justified. See
    Stillwell v. Brown, 
    46 F.3d 1111
    , 1113 (Fed. Cir. 1995)
    (“‘[T]o determine whether the overall position of the
    United States is substantially justified, trial courts are
    instructed to look at the entirety of the government’s
    conduct and make a judgment call whether the govern-
    ment’s overall position had a reasonable basis in both law
    and fact.’ This ‘quintessentially discretionary’ inquiry
    necessarily involves the determination of facts and the
    application of the substantially justified standard of the
    EAJA to those facts. . . . [S]uch a challenge is specifically
    excluded from our jurisdictional grant.”), quoting Chiu v.
    United States, 
    948 F.2d 711
    , 715 (Fed. Cir. 1991).
    In light of the factual nature of the “substantially jus-
    tified” finding, the government has sought dismissal of
    Mrs. Reeves’ appeal for lack of jurisdiction. She counters
    by pointing to this court’s opinion in Halpern v. Principi,
    
    384 F.3d 1297
     (Fed. Cir. 2004). In that case, we held that
    “where adoption of a particular legal standard dictates
    the outcome of a case based on undisputed facts, we may
    address that issue as a question of law.” 
    Id. at 1306
    ,
    citing Brandenburg v. Principi, 
    371 F.3d 1362
    , 1363 (Fed.
    Cir. 2004); Bailey v. Principi, 
    351 F.3d 1381
    , 1384 (Fed.
    Cir. 2003).
    There is some ambiguity in Mrs. Reeves’ briefing
    about what she considers to be the Veterans Court’s legal
    error that gives this court jurisdiction. Her principal
    contention is that this court has jurisdiction over her
    present appeal because the Board and the Veterans Court
    in the earlier stage of this case erred in concluding that
    section 1154(b) was not relevant to the issue of nexus
    REEVES   v. MCDONALD                                      5
    between Mr. Reeves’ service and his disability. That
    conclusion constituted legal error, Mrs. Reeves argues,
    since we held in our previous decision that the section
    1154(b) presumption was relevant to the issue of nexus. 2
    That legal error, she argues, gives this court jurisdiction
    in this case.
    That argument is incorrect. In order for this court to
    have jurisdiction to review the Veterans Court’s decision
    denying her EAJA application, that decision itself must
    be based on an assertedly erroneous legal ruling. It is not
    enough that the previous decision of the Veterans Court
    on the merits of Mr. Reeves’ CUE claim was based on a
    legal error. That legal issue was resolved in the prior
    appeal. The question before us now is whether the gov-
    ernment’s position in that case was substantially justi-
    fied. A claim that there was legal error in the prior
    proceeding does not by itself establish that there was
    legal error in the Veterans Court’s finding that the gov-
    ernment’s position in that case was substantially justi-
    fied.
    Nonetheless, Mrs. Reeves appears also to be making a
    second, and related jurisdictional argument. She con-
    tends that “the lower court relied on the wrong legal
    standard when it evaluated whether the government’s
    position was substantially justified.” That is, she appears
    to be alleging that when the Board made a legal error by
    misinterpreting the applicability of section 1154(b), it
    2    In order to establish eligibility for service-
    connected disability benefits, a veteran must show “(1) the
    existence of a present disability; (2) in-service incurrence
    or aggravation of a disease or injury; and (3) a causal
    relationship [or nexus] between the present disability and
    the disease or injury incurred or aggravated during
    service.” Shedden v. Principi, 
    381 F.3d 1163
    , 1167 (Fed.
    Cir. 2004).
    6                                       REEVES   v. MCDONALD
    made a per se unreasonable determination, which as a
    matter of law could not be “substantially justified.” That
    argument presents a legal question over which we have
    jurisdiction.
    On the merits, however, that issue is one on which
    Mrs. Reeves cannot prevail. There is no support in the
    law for her suggestion that if the government’s position is
    based on a legal error, its position is per se unreasonable
    and cannot be “substantially justified.” In fact, the law is
    squarely to the contrary. “The term ‘substantially justi-
    fied’ means that the government’s position was ‘justified
    in substance or in the main,’ and had a ‘reasonable basis
    both in law and fact.’” Patrick v. Shinseki, 
    668 F.3d 1325
    ,
    1330 (Fed. Cir. 2011) (emphasis added), quoting Pierce v.
    Underwood, 
    487 U.S. 552
    , 565 (1988). The mere fact that
    the government’s position was found to be incorrect as a
    matter of law is insufficient by itself to support a finding
    of insubstantial justification. Id. at 1330 (“The govern-
    ment can establish that its position was substantially
    justified if it demonstrates that it adopted a reasonable,
    albeit incorrect, interpretation of a particular statute or
    regulation.”) (emphasis added). Mrs. Reeves has present-
    ed no argument suggesting a reason to overturn this well-
    settled proposition.
    To the extent that Mrs. Reeves seeks to characterize
    the Veterans Court’s decision as having focused on the
    wrong evidence in determining that the government’s
    position was substantially justified, we do not have juris-
    diction to review that decision. See Smith v. Principi, 
    343 F.3d 1358
    , 1361 (Fed. Cir. 2003) (“[O]ne of Mr. Smith’s
    primary contentions is that the Veterans Court improper-
    ly relitigated the merits of his case to conclude that the
    Secretary’s position was substantially justified. That
    argument appears to dispute either the Veterans Court’s
    fact findings or its application of law to fact, and therefore
    cannot be considered in this appeal.”).
    REEVES   v. MCDONALD                                     7
    Accordingly, on the single legal issue presented as to
    which we have jurisdiction, we uphold the legal standard
    applied by the Veterans Court in determining whether
    the government’s position was substantially justified.
    Because our jurisdiction is limited to questions of law, we
    do not address Mrs. Reeves’ other challenges to the Veter-
    ans Court’s decision, which fall outside our jurisdiction.
    AFFIRMED