Bedgood v. Cleland

521 F. Supp. 80, 31 Fed. R. Serv. 2d 125, 1981 U.S. Dist. LEXIS 10762
District Court, D. Minnesota·Decided February 12, 1981·No. Civ. No. 4-80-596·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION AND ORDER

DIANA E. MURPHY, District Judge.

Plaintiff Levi Z. Bedgood brings this action on behalf of himself and others similarly situated against defendant Max Cleland in his capacity as the administrator of the Veterans Administration [V.A.], alleging that the system the V.A. uses to determine entitlement to veterans’ pension benefits does not provide due process of law. Jurisdiction is claimed under 28 U.S.C. §§ 1361 and 1331(a). Plaintiff has filed motions seeking class certification and a preliminary injunction enjoining the V.A. from reducing, terminating, or suspending pension benefits to plaintiff or the class he seeks to represent without first providing adequate notice and an opportunity to be heard,

b BACKGROUND

Based on the record before the court at this stage of the proceedings, the facts relevant to this motion do not appear to be in dispute.

A. Plaintiff Bedgood

Plaintiff is a sixty-two year old individual who has received a veteran’s disability pension since April 9, 1969. This pension is his sole source of income. Upon being informed that plaintiff had become a nursing home patient, the V.A. raised his pension benefit rate to the “aid and attendance” rate of $520.25 per month, effective June 22, 1979. This rate was later raised to $594.66, effective June 1, 1980.

When the V.A. was subsequently informed that plaintiff had left the nursing home, it asked him to furnish information from his doctor to allow it to evaluate his entitlement to payment at the “aid and attendance” rate. Plaintiff was also examined by a V.A. doctor. The V.A. rating board then determined on August 5, 1980, that plaintiff was not entitled to payment at the “aid and attendance” rate, but was entitled to payment at the “housebound” rate.

On August 19, 1980, two weeks after the rating board’s decision, plaintiff was sent a form notifying him that his award of pension benefits had been “amended.” Attached was another form indicating that he was to be paid at the “housebound” rate and that he did not appear to be in need of regular aid and attendance. The back of the form contained information about the right to present new evidence, appeal the decision, or appear at a personal hearing. The notice did not state the amount plaintiff’s benefits would be when amended, when the amendment was to be effective, or that if a hearing were requested, the effective date of the amendment would be delayed.

On September 9, 1980, plaintiff was sent notice that his award had been amended to [82] $454.41, effective September 1, 1980. Plaintiff subsequently filed an appeal with the V.A.

B. V.A. Procedures

The record now before the court indicates that in Minnesota any change in V.A. benefit amounts generally does not take effect until after a hearing or appeal has been provided and a determination made if a recipient files a notice of disagreement and request for a hearing or appeal before the effective date of the change. A recipient in plaintiff’s position can secure a hearing before a change in his benefits. However, the notice provided to recipients whose benefits are changed does not notify them of the availability of this procedure, and the notice generally does not inform the recipient of the amount of the change or of the effective date of the change.

C. Plato v. Roudebush

Part of the background to the instant action is an earlier case in which a district court in Maryland certified a nationwide class “consisting of all individuals whose V.A. monthly pension benefits have been or may in the future be administratively reduced, terminated or suspended without first being afforded adequate advance notice and the opportunity for a hearing prior to the change in monthly pension benefits.” Plato v. Roudebush, 397 F.Supp. 1295, 1301 (D.Md.1975). The court declared in its judgment that the V.A. had a due process obligation to provide class members with adequate notice prior to decrease in V.A. pension benefits and to provide a full hearing thereon.1 It ordered the V.A. not to reduce, terminate, or suspend monthly pension benefits until it afforded the individual timely and adequate notice detailing the reasons for the change and its effective date and the available review procedures, and .also afforded the opportunity for a hearing at which the individual could confront and cross-examine witnesses, be represented by counsel, and receive a reasoned decision by an impartial decision maker.2

Judgment was entered in Plato v. Roudebush on July 7, 1975, and no appeal was taken by the defendant. The parties now before the court have differing views relative to the significance of Plato in relation to this action.

II. CLASS CERTIFICATION

Plaintiff seeks certification of a class composed of all recipients of veterans pension benefits in the State of Minnesota whose individual benefits have been or may in the future be reduced, terminated, or suspended without being afforded adequate notice and opportunity for a hearing prior to the change in their monthly pension benefits. This proposed class meets the requirements of Federal Rules of Civil Procedure 23(a) and 23(b)(2) and thus should be certified.

Rule 23(a) states that the prerequisites to maintenance of a class action are (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the case, (3) the claims or defenses of the representatives are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class. If the above prerequisites are met, a class action can be maintained under Rule 23(b)(2) where the party opposing the class has acted or refused to act on grounds generally applicable to the class and final injunctive or declaratory relief with respect to the class is appropriate.

Defendant argues that the proposed class is overbroad because of variation in V.A. [83] procedures and because it includes three groups that he believes were excluded from the class certified in Plato v. Roudebush. See note 1, supra. An examination of the Plato court’s judgment indicates that these groups were not excluded from the class but from part of the remedy fashioned by the court, i. e., from the declaratory and injunctive relief which necessitated a prior hearing.

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Bedgood v. Cleland, 521 F. Supp. 80, 31 Fed. R. Serv. 2d 125, 1981 U.S. Dist. LEXIS 10762 (mnd 1981).

521 F. Supp. 80 (Bedgood v. Cleland) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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