Alexandra M. Jackson v. Denis McDonough

CourtUnited States Court of Appeals for Veterans Claims
DecidedJune 25, 2024
Docket22-3528
StatusPublished

This text of Alexandra M. Jackson v. Denis McDonough (Alexandra M. Jackson v. Denis McDonough) is published on Counsel Stack Legal Research, covering United States Court of Appeals for Veterans Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexandra M. Jackson v. Denis McDonough, (Cal. 2024).

Opinion

Case: 22-3528 Page: 1 of 35 Filed: 06/25/2024

UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

No. 22-3528

ALEXANDRA M. JACKSON, APPELLANT,

V.

DENIS MCDONOUGH, SECRETARY OF VETERANS AFFAIRS, APPELLEE.

On Appeal from the Board of Veterans’ Appeals

(Argued March 7, 2024 Decided June 25, 2024)

Zachary M. Stolz, with whom Jenna E. Zellmer was on the brief, both of Providence, Rhode Island, for the appellant.

Nathan P. Kirschner, with whom Richard J. Hipolit, Deputy General Counsel for Veterans Programs; Mary Ann Flynn, Chief Counsel; and Dustin P. Elias, Deputy Chief Counsel, all of Washington, D.C., were on the brief for the appellee.

Before ALLEN, LAURER, and JAQUITH, Judges.

LAURER, Judge, filed the opinion of the Court. JAQUITH, Judge, filed a dissenting opinion.

LAURER, Judge: Appellant, Alexandra M. Jackson, is an attorney who represented United States Army and Navy veteran John A. Lovier before the Department of Veterans Affairs (VA) agency of original jurisdiction (AOJ).1 Ms. Jackson, through counsel, challenges a May 22, 2022, Board of Veterans’ Appeals (Board) decision denying her attorney fees paid from past-due benefits awarded to Mr. Lovier. VA granted Mr. Lovier an increased rating for his left hip disability in a December 2021 rating decision that addressed his September 2021 filing with VA.2 From afar, the case seems simple. The Court must decide which of two rating decisions is the “initial decision . . . with respect to the case.”3 Is the initial decision the original grant of service connection in March 2008 or the more recent December 2021 decision granting an increase in benefits? How the Court categorizes the September 2021 submission controls. And that boils down

1 Record (R.) at 3-6. 2 R. at 88-91, 396-401. 3 38 U.S.C. § 5904(c)(1). Case: 22-3528 Page: 2 of 35 Filed: 06/25/2024

to whether the September 2021 submission is a supplemental claim. If the September 2021 submission is a supplemental claim, then the March 2008 decision is the initial decision with respect to the case, and appellant likely prevails and can recover attorney fees under § 5904(c)(1). Congress overhauled the veterans benefits claims and appeal system when it passed the Veterans Appeals Improvement and Modernization Act of 2017 (AMA). 4 Part of the overhaul included amendments to the law permitting fees for services performed by an agent or attorney before VA. Before the AMA, representatives could obtain fees for work performed after a Notice of Disagreement (NOD) was filed.5 Now, under the AMA, representatives can earn fees for work performed after the AOJ makes an “initial decision . . . with respect to the case . . . .”6 Congress didn’t define the term “initial decision,” and the term “with respect to the case” predates the AMA. So the Court will analyze Congress’s overhaul and determine whether the AMA changes what’s already settled. The appeal focuses on how to interpret 38 U.S.C. § 5904(c). But to meaningfully decide the ultimate interpretive question, the Court must first answer an essential preliminary legal question. That question is: Did a new procedural review option under the AMA—the supplemental claim—displace the longstanding understanding of increased rating claims? Put another way: Under the AMA, is an increased rating claim a supplemental claim? Once we answer this question, we have ample legal guidance to answer whether the Board erred. The parties each use the well-recognized steps from Chevron v. Natural Resources Defense Council, Inc., to support their arguments.7 They choose different paths on their way and arrive at different places. Appellant’s thesis is straightforward: she argues that, under the plain language of the AMA, her client’s September 2021 submission is a supplemental claim.8 And since it’s a supplemental claim, she’s entitled to a fee because her advocacy led to the grant of additional

4 Pub. L. No. 115-55, 131 Stat. 1105 (codified as amended in scattered sections of 38 U.S.C.). 5 38 U.S.C. § 5904(c)(1) (Supp. V 2006). 6 38 U.S.C. § 5904(c)(1) (2018). 7 Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc., 467 U.S. 837 (1984). 8 Appellant’s Brief (Br.) at 9 (“When examined within the plain language, structure, and statutory history, it is clear and unambiguous that Congress defined increased rating claims as supplemental claims—not initial or original claims—thus, there is no gap for VA to fill.”).

2 Case: 22-3528 Page: 3 of 35 Filed: 06/25/2024

benefits for her client. 9 The Secretary argues that an increased rating claim is distinct from a supplemental claim—a point VA explained through its rulemaking. 10 He says that Chevron authorized VA to fill a legal gap and that his regulation—38 C.F.R. § 3.1—answers the legal question, and the Board’s denial of past due fees was proper.11 We need not explore the Chevron paths the parties walk; we see no ambiguity in the statute. As explained below, the Court affirms the Board’s decision because the plain statutory text shows that the September 2021 submission wasn’t a supplemental claim—it was a new claim. 12 Moreover, this reading of the statute is supported by the relevant caselaw and a holistic reading of the AMA.

I. PROCEDURAL HISTORY The Court reviews the procedural history first, which began when Mr. Lovier filed for service connection in April 2007 for a hip disability.13 In March 2008, VA granted him service connection for status post surgery avascular necrosis of femoral heads (bilateral hip disability), with a 0% rating.14 Appellant’s law firm began representing Mr. Lovier and filed an NOD in March 2009, challenging the noncompensable rating.15 In November 2009, VA increased Mr. Lovier’s rating to 10% for both his left and right hip, effective April 2007.16 Mr. Lovier continued to pursue a higher rating, and the Board remanded his claim in September 2013 and again in November 2017.17 Then in January 2018, appellant took over representing Mr. Lovier.18 The Board ultimately

9 Appellant’s Br. at 4. 10 Secretary’s Br. at 14-15 (“Moreover, an increased rating claim is by definition not a disagreement with a prior rating decision, and therefore, as VA explained in the Final Rule, does not seek a ‘readjudication’ of the rating previously assigned. 38 U.S.C. § 5108(a) (a supplemental claim requires VA to ‘readjudicate’ the claim) . . . .”). 11 Secretary’s Br. at 15-17. While Congress provided a definition for “supplemental claim,” see 38 U.S.C. 101(36), it did not define, 12

or even name, a non-supplemental claim. In this opinion, we will use the term “new claim” to identify a claim that does not meet the definition that Congress provided of a supplemental claim. 13 R. at 1936-53. 14 R. at 1524-28. 15 R. at 1516. The same law firm represented the veteran throughout this period, although the individual attorneys changed. See, e.g., R. at 765, 1493, 1517. 16 R. at 1471. 17 R. at 1300. 18 R. at 756-57.

3 Case: 22-3528 Page: 4 of 35 Filed: 06/25/2024

denied Mr.

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Alexandra M. Jackson v. Denis McDonough, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexandra-m-jackson-v-denis-mcdonough-cavc-2024.