Carissa Thompson v. Pete Hegseth

Court of Appeals for the Fourth Circuit·Decided July 31, 2026·No. 24-2050·Unpublished

Opinion

USCA4 Appeal: 24-2050 Doc: 73 Filed: 07/31/2026 Pg: 1 of 47

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 24-2050

CARISSA L. THOMPSON,

Plaintiff – Appellant,

v.

THE HONORABLE PETE HEGSETH, in his official capacity as Secretary of Defense; KENDALL FRANK, III; PHYSICAL DISABILITY BOARD OF REVIEW,

Defendants – Appellees.

-----------------------------

MILITARY-VETERANS ADVOCACY INC.,

Amicus Supporting Appellant.

Appeal from the United States District Court for the District of Maryland, at Greenbelt. Deborah K. Chasanow, Senior District Judge. (8:23-cv-02458-DKC)

Argued: January 28, 2026 Decided: July 31, 2026

Before QUATTLEBAUM, RUSHING, and BENJAMIN, Circuit Judges.

Affirmed by unpublished opinion. Judge Rushing wrote the majority opinion, in which Judge Quattlebaum joined. Judge Benjamin wrote a dissenting opinion. USCA4 Appeal: 24-2050 Doc: 73 Filed: 07/31/2026 Pg: 2 of 47

ARGUED: Brian A. Kulp, DECHERT, LLP, Philadelphia, Pennsylvania, for Appellant. Rebecca Ann Koch, OFFICE OF THE UNITED STATES ATTORNEY, Baltimore, Maryland, for Appellees. ON BRIEF: Steven A. Engel, Washington, D.C., Christopher J. Merken, Philadelphia, Pennsylvania, Michael A. Losco, Biaunca S. Morris, DECHERT LLP, New York, New York; Rochelle Bobroff, NATIONAL VETERANS LEGAL SERVICES PROGRAM, Arlington, Virginia, for Appellant. Erek L. Barron, United States Attorney, OFFICE OF THE UNITED STATES ATTORNEY, Baltimore, Maryland, for Appellees. John B. Wells, MILITARY-VETERANS ADVOCACY INC., Slidell, Louisiana; Melanie L. Bostwick, Anne W. Savin, Washington, D.C., Melanie R. Hallums, ORRICK, HERRINGTON & SUTCLIFFE LLP, New York, New York, for Amicus Curiae.

Unpublished opinions are not binding precedent in this circuit.

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RUSHING, Circuit Judge:

United States Air Force veteran Carissa Thompson brought this lawsuit under the

Administrative Procedure Act against the Secretary of Defense, the Secretary of the Air

Force, and the Physical Disability Board of Review (PDBR). The PDBR, which no longer

exists, was a temporary entity created to review disability determinations for former

members of the armed forces who were separated from the forces due to a medical

condition during a certain time frame. After its review, the PDBR recommended no change

to Thompson’s disability rating, and she challenged that decision in this lawsuit. The

district court granted Defendants’ motion for summary judgment and denied Thompson’s

cross-motion for summary judgment, finding that Thompson had failed to demonstrate that

the decision not to modify her disability rating was unlawful. We affirm.

I.

A servicemember’s disability rating is relevant for determining the benefits she will

receive after leaving the armed forces. “A member of a regular component of the armed

forces entitled to basic pay,” 10 U.S.C. § 1201(c)(1), who is found “by the Secretary” of

the relevant military department to be “unfit to perform the duties of the member’s office,

grade, rank, or rating because of physical disability incurred while entitled to basic pay,”

may be “retire[d],” id. § 1201(a), or “separated,” depending on the degree of the member’s

disability, id. § 1203(a). A servicemember with fewer than 20 years of service may qualify

for retirement, with retirement pay and benefits, if the Secretary determines that the

servicemember’s “disability is at least 30 percent under the standard schedule of rating

disabilities in use by the Department of Veterans Affairs at the time of the determination.”

3 USCA4 Appeal: 24-2050 Doc: 73 Filed: 07/31/2026 Pg: 4 of 47

Id. § 1201(b)(3). But if the servicemember’s disability is determined to be less than 30

percent, she “may be separated from [her] armed force, with severance pay.” Id. § 1203(a).

The Air Force implements this statutory scheme through its Disability Evaluation

System. See Air Force Instruction (AFI) 36-3212 ¶ 1.1 (2006). Under that system,

attending physicians at medical treatment facilities conduct exams, “[p]repare the

documents required to identify medical defects or conditions that may disqualify the

member for continued active duty,” and then “[r]efer the case” to an Air Force Medical

Evaluation Board (MEB). Id. ¶ 2.2.1. Medical officers on the MEB then evaluate the

documentation, recommend the disposition of the case, and refer disability cases to an Air

Force Physical Evaluation Board (PEB). Id. ¶¶ 2.1, 2.2.2, 2.3.1. A PEB “is a fact-finding

body that investigates the nature, origin, degree of impairment, and probable permanence

of the physical . . . condition of any member whose case it evaluates.” Id. ¶ 3.1. If the PEB

“finds a member unfit, it recommends appropriate disposition based on the degree of

impairment caused by the disabling condition, the date incurred, and the member’s line of

duty status.” Id. The PEB assigns disability percentage ratings using the Department of

Veterans Affairs Schedule for Rating Disabilities (VASRD) and Department of Defense

Instruction 1332.39. Id. ¶ 3.18.

In 2008, as part of the Dignified Treatment of Wounded Warriors Act, Congress

created the PDBR “to review the disability determinations of covered individuals by

[PEBs].” 10 U.S.C. § 1554a(a)(1). Covered individuals are “members and former

members of the armed forces who, during the period beginning on September 11, 2001,

and ending on December 31, 2009 . . . are separated from the armed forces due to unfitness

4 USCA4 Appeal: 24-2050 Doc: 73 Filed: 07/31/2026 Pg: 5 of 47

for duty due to a medical condition with a disability rating of 20 percent disabled or less”

and “are found to be not eligible for retirement.” Id. § 1554a(b). Based on its review, the

PDBR could recommend to the Secretary “issuance of a new disability rating,”

“modification of the disability rating previously assigned,” “recharacterization of the

separation . . . to retirement,” or no change. Id. § 1554a(d). The Secretary could then

“correct the military records . . . in accordance with a recommendation made by the

[PDBR].” Id. § 1554a(e)(1). Action taken by the Secretary based on the PDBR’s

recommendation not to correct is final. Id. § 1554a(e)(3). The PDBR ceased operating in

October 2024. 1 See Memorandum, Office of the Under Secretary of Defense, Sunset of

Physical Disability Board of Review (July 9, 2024).

II.

Thompson entered the United States Air Force in November 2002. While she was

on authorized leave in July 2003, Thompson sustained an injury to her back when an all-

terrain vehicle she was riding overturned and landed on her. She was diagnosed with an

L1 vertebra burst fracture, placed in a back brace, and prescribed narcotics for pain. She

returned to military duty and received further treatment.

Around July 26, 2004, Thompson underwent an MEB examination. In February

2005, the MEB referred Thompson’s case to the PEB. The PEB determined that Thompson

was unfit for duty under diagnostic code 5235 (vertebral fracture or dislocation), assigned

1 Any requests for PDBR review by an Air Force veteran after that date must be referred to the Secretary of the Air Force for referral to the Air Force Board for Correction of Military Records.

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