Akard v. McDonough ( 2021 )


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  • Case: 21-1383    Document: 33     Page: 1   Filed: 12/13/2021
    NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    JEFFREY E. AKARD,
    Claimant-Appellant
    v.
    DENIS MCDONOUGH, SECRETARY OF
    VETERANS AFFAIRS,
    Respondent-Appellee
    ______________________
    2021-1383
    ______________________
    Appeal from the United States Court of Appeals for
    Veterans Claims in No. 19-6262, Judge Michael P. Allen.
    ______________________
    Decided: December 13, 2021
    ______________________
    JEFFREY E. AKARD, New Castle, IN, pro se.
    MARIANA TERESA ACEVEDO, Commercial Litigation
    Branch, Civil Division, United States Department of Jus-
    tice, Washington, DC, for respondent-appellee. Also repre-
    sented by BRIAN M. BOYNTON, MARTIN F. HOCKEY, JR.,
    LOREN MISHA PREHEIM; AMANDA BLACKMON, Y. KEN LEE,
    Office of General Counsel, United States Department of
    Veterans Affairs, Washington, DC.
    ______________________
    Case: 21-1383    Document: 33      Page: 2    Filed: 12/13/2021
    2                                      AKARD   v. MCDONOUGH
    Before PROST, TARANTO, and CHEN, Circuit Judges.
    PER CURIAM.
    In 2013 and 2015, Jeffrey E. Akard, a veteran of the
    U.S. Army, requested that the Department of Veterans Af-
    fairs (VA) pay to his father the disability benefits being
    withheld from Mr. Akard during his incarceration. The rel-
    evant VA regional office (RO) denied his request for want
    of evidence that Mr. Akard’s father was a dependent parent
    eligible for such “apportionment.” Mr. Akard appealed to
    the Board of Veterans’ Appeals, and the Board dismissed
    the appeal on the ground that he (unlike his father, who
    did not appeal) lacked a personal stake in the RO’s appor-
    tionment ruling and so lacked standing to appeal the ruling
    to the Board. The Court of Appeals for Veterans Claims
    (Veterans Court) affirmed the Board’s decision. Akard v.
    Wilkie, No. 19-6262, 
    2020 WL 5200711
     (Vet. App. Aug. 27,
    2020); Supplemental Appendix (SAppx.) 1–3. Mr. Akard
    appeals. We affirm.
    I
    In 1999, VA awarded Mr. Akard disability compensa-
    tion based on what it found were service-connected low-
    back and right-shoulder conditions, for which VA assigned
    him a combined disability rating of 30%. Mr. Akard was
    later incarcerated after being convicted of several felonies.
    In April 2009, VA learned of Mr. Akard’s incarceration and
    proposed reducing his benefit payments from 30% to 10%,
    as authorized by statute, 
    38 U.S.C. § 5313
    , and by regula-
    tion, see 
    38 C.F.R. § 3.665
    (a) (providing that compensation
    payable to veterans incarcerated for more than 60 days is
    limited according to 
    38 C.F.R. § 3.665
    (d)); 
    id.
     § 3.665(d)
    (limiting the compensation payable to an incarcerated vet-
    eran with an evaluation of at least 20% to the rate under
    
    38 U.S.C. § 1114
    (a), equal to a 10% rating). VA imple-
    mented the reduction in June 2009, and Mr. Akard does
    not contest the reduction.
    Case: 21-1383     Document: 33      Page: 3     Filed: 12/13/2021
    AKARD   v. MCDONOUGH                                          3
    In both 2013 and 2015, Mr. Akard requested that his
    withheld benefits—the difference between the 30%
    awarded and the 10% paid during incarceration—be paid
    to his father, who, Mr. Akard explained, became disabled
    in August 2009. SAppx. 8–9. The VA’s “apportionment”
    regulation allows for some or all of the compensation not
    paid to an incarcerated veteran to be “apportioned” to a “de-
    pendent parent[]” on the basis of individual need. See 
    38 C.F.R. § 3.665
    (e)(1). The RO “accepted an apportionment
    claim from [Mr. Akard] on behalf of his father.” SAppx 5.
    In April 2017, the RO, seeking to determine eligibility,
    asked that Mr. Akard’s father complete a dependency form,
    VA Form 21P-509, see SAppx. 7, and there is no dispute
    here about the adequacy of notice to Mr. Akard’s father of
    that request. Mr. Akard’s father did not respond, and the
    RO denied Mr. Akard’s apportionment request in May
    2017, finding insufficient evidence of his father’s eligibility.
    
    Id.
    Mr. Akard filed a notice of disagreement, which the RO
    accepted for filing. Id. at 5. Whether by that filing or a
    separate appeal, Mr. Akard appealed the denial of appor-
    tionment to the Board. 1 Mr. Akard’s father did not appeal.
    Indeed, in his brief in the Veterans Court, the Secretary
    stated that the RO failed to give Mr. Akard’s father the re-
    quired notice of the May 2017 denial at the time, providing
    that notice only in a June 2020 letter that informed Mr.
    1   Congress made various changes in appeal proce-
    dures in the Veterans Appeals Improvement and Moderni-
    zation Act of 2017 (“AMA”), Pub. L. No. 115-55, 
    131 Stat. 1105
    . The parties have not specified whether Mr. Akard’s
    appeal to the Board proceeded under the pre-AMA or post-
    AMA version of 
    38 U.S.C. § 7105
    , one difference being that
    a formal appeal followed the notice of disagreement under
    the older version whereas no such separate formal appeal
    is required under the current version.
    Case: 21-1383     Document: 33     Page: 4    Filed: 12/13/2021
    4                                       AKARD   v. MCDONOUGH
    Akard’s father of his still-live right to appeal. Sec’y Br. at
    7, Akard, 
    2020 WL 5200711
     (19-6262).
    The Board dismissed Mr. Akard’s appeal in June 2019,
    citing 
    38 U.S.C. § 7108
    ’s directive that “[a]n application for
    review on appeal shall not be entertained unless it is in
    conformity with this chapter [
    38 U.S.C. §§ 7101
    –7113].” 
    38 U.S.C. § 7108
    ; see SAppx. 4–5 (citing statute). The Board
    reasoned that Mr. Akard did not have “standing” to appeal
    the denial of apportionment to his father. Id. at 5. To have
    standing to appeal a denial of apportionment, the Board
    said, an appellant must have a “‘personal stake in the out-
    come of the controversy.’” Id. (citing Redding v. West, 
    13 Vet. App. 512
    , 514 (2000) (citing Baker v. Carr, 
    369 U.S. 186
    , 204 (1962))). Here, the Board concluded, Mr. Akard
    did not show such a stake. The Board explained that an
    apportionment award “is an entity which is legally sepa-
    rate from [the veteran’s] benefits”; incarcerated veterans
    typically lack a “personal stake” in the benefits that have
    been properly withdrawn from them (as is undisputed
    here); and it is only such duly withdrawn benefits that are
    at issue in a request for apportionment to a dependent. 
    Id.
    (citing Belton v. Principi, 
    17 Vet. App. 209
    , 211–12 (2003)
    and Ferenc v. Nicholson, 
    20 Vet. App. 58
    , 64 (2006)). The
    Board also found that there was no indication that Mr.
    Akard was his father’s legal guardian, that Mr. Akard’s fa-
    ther was his dependent, or that Mr. Akard was adversely
    affected by the denial of apportionment. 
    Id.
     For those rea-
    sons, the Board dismissed Mr. Akard’s appeal. 
    Id.
    Mr. Akard appealed to the Veterans Court. The Veter-
    ans Court affirmed the Board’s dismissal of the appeal on
    August 27, 2020, agreeing with the Board that Mr. Akard
    “lacked a ‘personal stake’ in the decision to deny apportion-
    ment of benefits to his father.” Akard, 
    2020 WL 5200711
    ,
    at *1–2. While observing that Article III itself does not ap-
    ply to administrative bodies such as the Board, 
    id.
     at *1
    n.14, the Veterans Court ruled that the Board had properly
    identified the “key concept” defining why Mr. Akard had no
    Case: 21-1383     Document: 33      Page: 5   Filed: 12/13/2021
    AKARD   v. MCDONOUGH                                        5
    right to appeal from the RO to the Board here: that he
    lacked a “personal stake” in whether his father received, as
    an apportionment, any part of the disability benefits that
    had been properly withdrawn from Mr. Akard. 
    Id.
     The
    Veterans Court determined that Belton and Ferenc, cited
    by the Board, were dispositive in determining that Mr.
    Akard could not appeal the VA’s apportionment denial to
    the Board. Id. at *2. Rather, only Mr. Akard’s father could
    contest the VA’s denial of apportionment. Id. 2
    Mr. Akard timely appealed to this court.
    II
    This court’s jurisdiction to review decisions of the Vet-
    erans Court, defined by 
    38 U.S.C. § 7292
    , is limited. We
    have jurisdiction to decide an appeal insofar as it presents
    a challenge to a Veterans Court’s decision regarding a rule
    of law, including a decision about the interpretation or va-
    lidity of any statute or regulation. 
    Id.
     § 7292(a), (d)(1). We
    do not have jurisdiction to review a challenge to a factual
    determination or a challenge to the application of a law or
    regulation to the facts of a particular case, except to the
    extent that an appeal presents a constitutional issue,
    which this appeal does not. See 
    38 U.S.C. § 7292
    (d)(2).
    We liberally construe Mr. Akard’s appeal to this court
    as suggesting a legal error in the Veterans Court’s conclu-
    sion that, with exceptions not found applicable here, a vet-
    eran has no sufficient stake in securing apportionment to
    another (of disability benefits properly withdrawn from the
    veteran) to permit the veteran to appeal an RO
    2   The papers before us do not indicate whether Mr.
    Akard’s father has pursued an appeal to the Board after
    receiving the June 2020 notice of the May 2017 RO appor-
    tionment denial.
    Case: 21-1383    Document: 33      Page: 6    Filed: 12/13/2021
    6                                      AKARD   v. MCDONOUGH
    apportionment denial to the Board. We see no legal error
    in that ruling.
    The regulation governing reduction of benefits when a
    veteran is incarcerated, and providing for apportionment
    in such circumstances, refers to “the rights of the person’s
    dependents to an apportionment while the person is incar-
    cerated” and to the VA’s duty to “notify the person’s depend-
    ents of their right to an apportionment.” 
    38 C.F.R. § 3.665
    (a) (emphasis added). The regulatory language, on
    its face and sensibly understood, supports the Veterans
    Court’s recognition, in this case and in the earlier cases
    deemed dispositive here, that the apportionment right be-
    longs to the potential recipient, not to the veteran. See
    Ferenc v. Nicholson, 
    20 Vet. App. 58
    , 63–64 (2006); Belton
    v. Principi, 
    17 Vet. App. 209
    , 211–12 (2003); see also
    Batcher v. Wilkie, 
    975 F.3d 1333
    , 1338 (Fed. Cir. 2020)
    (quoting Belton, 17 Vet. App. at 211) (“‘[W]hen veterans’
    dependents file on their own behalf for an apportionment,
    they seek to exercise their right to an apportionment.’”).
    Ferenc and Belton are different from this case in one
    respect: they involved appeals to the Veterans Court, rather
    than (as here) an appeal to the Board. The Veterans Court
    has adopted standing requirements of Article III of the U.S.
    Constitution, see Hyatt v. Shinseki, 
    566 F.3d 1364
    , 1367
    (Fed. Cir. 2009), and a “personal stake” is generally an Ar-
    ticle III requirement, see Military-Veterans Advocacy v.
    Sec’y of Veterans Affairs, 
    7 F.4th 1110
    , 1121 (Fed. Cir.
    2021). In contrast, as the Veterans Court stated in the pre-
    sent case, “Article III standing requirements don’t apply to
    administrative bodies such as the Board.” Akard, 
    2020 WL 5200711
    , at *1 n.14.
    Mr. Akard has not shown, however, that the just-noted
    distinction makes a difference to the non-appealability de-
    termination in this case. Article III is not the only source
    of limitation on appeal rights. As a statutory matter, an
    appeal to the Board must be initiated by the “claimant”—
    Case: 21-1383     Document: 33      Page: 7     Filed: 12/13/2021
    AKARD   v. MCDONOUGH                                          7
    or “the claimant’s legal guardian, or such accredited repre-
    sentative, attorney, or authorized agent as may be selected
    by the claimant or legal guardian.” 
    38 U.S.C. § 7105
    (b)(2)
    (same in pre- and post-AMA versions). The ordinary mean-
    ing of “claimant” under that statutory provision does not
    encompass any person who files a claim but, rather, refers
    to the person who would receive the benefit if granted; oth-
    erwise, the specific statutory list of non-claimants who may
    appeal would make little if any sense. 3 Under that reading,
    3    We have seen nothing in VA regulations adopting
    a contrary interpretation. Before VA adopted regulations
    in 2019 to implement the AMA, the regulation on “[w]ho
    can file an appeal” to the Board was similar to the statute,
    limiting the right to “a claimant personally, or . . . his or
    her representative if a proper Power of Attorney or decla-
    ration of representation, as applicable, is on record or ac-
    companies” the filing. 
    38 C.F.R. § 20.301
    (a) (pre-AMA
    regulation). The post-AMA regulations moved that provi-
    sion to 
    38 C.F.R. § 19.50
    (a) (post-AMA regulation), without
    material change. See VA Claims and Appeals Moderniza-
    tion, 
    84 Fed. Reg. 138
    , 177 (Jan. 18, 2019) (Final Rule).
    Certain definitional regulations are consistent with ty-
    ing the claim to the filer’s own entitlement. A pre-AMA
    definitional regulation in Part 20, concerning the Board,
    defined “claimant” as “a person who has filed a claim,” 
    38 C.F.R. § 20.3
    (g), and “claim” as an “application . . . for enti-
    tlement to . . . benefits,” 
    38 C.F.R. § 20.3
    (f) (pre-AMA reg-
    ulation), while a definitional regulation in Part 3,
    concerning Adjudication generally, said: “Claim―Applica-
    tion means a formal or informal communication in writing
    requesting a determination of entitlement or evidencing a
    belief in entitlement, to a benefit,” 
    38 C.F.R. § 3.1
    (p). The
    post-AMA regulations conformed the Part 20 definition to
    the Part 3 definition. 
    38 C.F.R. § 20.3
    (g) (post-AMA ver-
    sion) (claimant is one who files “claim” as defined); 
    id.
    § 20.3(f) (post-AMA version) (claim is request for
    Case: 21-1383      Document: 33      Page: 8     Filed: 12/13/2021
    8                                         AKARD   v. MCDONOUGH
    the statute limits an appeal of an apportionment denial to
    the person who would receive the apportionment and the
    short list of statutorily authorized stand-ins for that per-
    son—so that the veteran cannot initiate an appeal to the
    Board from a denial of an apportionment claim unless the
    veteran qualifies as one of the few people (such as a legal
    guardian) allowed to do so on behalf of the potential appor-
    tionment recipient. See Redding, 13 Vet. App. at 514–15
    (discussing 
    38 U.S.C. § 7105
    (b)(2)), relied on in Belton, 17
    Vet. App. at 211–12.
    It is on that legal conclusion that we think the Veterans
    Court’s ruling in this case, affirming the Board’s ruling,
    should be understood to rest. The Board expressly relied
    on the failure of Mr. Akard to meet the appeal require-
    ments of 
    38 U.S.C. §§ 7101
    –13. SAppx. 4–5. To support its
    determination, the Board found that there was no indica-
    tion that Mr. Akard was his father’s legal guardian. Id. at
    5. The Veterans Court affirmed the Board’s decision. Alt-
    hough the Veterans Court used “personal stake” language,
    we read that language, in the context of the Veterans
    Court’s specific recognition that Article III is not applicable
    to the Board, simply as part of its adoption of the essential
    premise, established in the cited Ferenc and Belton, about
    who has the apportionment right—namely, the potential
    recipient, not the veteran. Once that premise is estab-
    lished, the statutory limitations on who may appeal to the
    Board barred Mr. Akard’s appeal.
    determination of “entitlement[] to a specific benefit”); see
    VA Claims and Appeals Modernization, 
    83 Fed. Reg. 39,818
    , 39,831 (Aug. 10, 2018) (Proposed Rule) (“VA pro-
    poses minor edits to § 20.3 Definitions, to remove terms
    that are no longer used in part 20, or are defined elsewhere
    in the part. VA also proposes to adopt the definition of
    ‘claim’ used in part 3 of this title.”); Final Rule, 84 Fed. Reg.
    at 179.
    Case: 21-1383    Document: 33       Page: 9    Filed: 12/13/2021
    AKARD   v. MCDONOUGH                                        9
    We do not understand Mr. Akard to contend that he
    was the legal guardian of his father or that he played any
    of the other roles identified in the statute as permitting
    non-claimant appeals to the Board. He has not presented
    to us a question about such matters that would come within
    our jurisdiction, from which fact-specific questions are ex-
    cluded (where, as here, no constitutional issue is raised).
    We have also considered Mr. Akard’s references to 
    38 C.F.R. § 3.451
     and 
    38 C.F.R. § 3.665
    (e)(1), but we do not see
    in those references any issue that is within our jurisdiction
    and affects the resolution of the decisive issue of appeala-
    bility to the Board.
    III
    For the foregoing reasons, the decision of the Veterans
    Court is affirmed.
    The parties shall bear their own costs.
    AFFIRMED
    

Document Info

Docket Number: 21-1383

Filed Date: 12/13/2021

Precedential Status: Non-Precedential

Modified Date: 12/14/2021