Freund v. McDonough

114 F.4th 1371
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 20, 2024
Docket23-1387
StatusPublished
Cited by5 cases

This text of 114 F.4th 1371 (Freund v. McDonough) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freund v. McDonough, 114 F.4th 1371 (Fed. Cir. 2024).

Opinion

Case: 23-1387 Document: 50 Page: 1 Filed: 08/20/2024

United States Court of Appeals for the Federal Circuit ______________________

MARK FREUND, MARY S. MATHEWSON, Claimants-Appellants

v.

DENIS MCDONOUGH, SECRETARY OF VETERANS AFFAIRS, Respondent-Appellee ______________________

2023-1387 ______________________

Appeal from the United States Court of Appeals for Veterans Claims in No. 21-4168, Judge Amanda L. Mere- dith, Judge Michael P. Allen, Judge Scott Laurer. ______________________

Decided: August 20, 2024 ______________________

JONAS WANG, Orrick, Herrington & Sutcliffe LLP, Washington, DC, argued for claimants-appellants. Also represented by MELANIE L. BOSTWICK; KENNETH DOJAQUEZ, JOHN D. NILES, Carpenter Chartered, Topeka, KS.

EVAN WISSER, Commercial Litigation Branch, Civil Di- vision, United States Department of Justice, Washington, DC, argued for respondent-appellee. Also represented by BRIAN M. BOYNTON, ERIC P. BRUSKIN, PATRICIA M. MCCARTHY; BRIAN D. GRIFFIN, JONATHAN KRISCH, Office of Case: 23-1387 Document: 50 Page: 2 Filed: 08/20/2024

General Counsel, United States Department of Veterans Affairs, Washington, DC.

MEGHAN BROOKS, Veterans Legal Clinic, University of South Carolina School of Law, Columbia, SC, for amici cu- riae Christine Bartholomew, Sergio Campos, Maureen S. Carroll, Brooke D. Coleman, Robin Effron, David Freeman Engstrom, Myriam Gilles, Maria Glover, Andrew Ham- mond, Deborah R. Hensler, Helen Hershkoff, Alexandra Lahav, David Marcus, Michael Sant’Ambrogio, Adam Steinman, Adam Zimmerman.

PAUL ENRIQUEZ, Covington & Burling LLP, Washing- ton, DC, for amici curiae National Veterans Legal Services Program, National Organization of Veterans' Advocates. Also represented by ALICE JUWON AHN, ALEXANDER SETZEPFANDT, SARA SUNDERLAND, San Francisco, CA; MEGAN RODGERS, Palo Alto, CA. ______________________

Before DYK, HUGHES, and STOLL, Circuit Judges. DYK, Circuit Judge. Appellants Mark Freund and Mary Mathewson (collec- tively “petitioners” or “appellants”) appeal from an order of the United States Court of Appeals for Veterans Claims (“Veterans Court”) dismissing their petitions and denying class certification. 1 We conclude that the Veterans Court abused its discretion in finding that the adequacy and com- monality requirements for class certification were not met. We hold, moreover, that the case is not moot as to the class claims because it satisfies the inherently transitory claim standard. We therefore vacate the order denying

1 Both current appellants have been substituted for the original claimants. Case: 23-1387 Document: 50 Page: 3 Filed: 08/20/2024

FREUND v. MCDONOUGH 3

class certification and dismissing the case, and remand for the Veterans Court to further consider its class certifica- tion ruling and, if a class is certified, to determine the ap- propriate relief. BACKGROUND This case involves veterans benefits appeals from the Department of Veterans Affairs (“VA”) Regional Offices (“RO”) to the Board of Veterans’ Appeals (“Board”) that were erroneously deactivated by the VA. This occurred be- cause a computer program automatically and improperly swept them out of the system. The VA currently operates two adjudicatory systems for benefits claims, and only the so-called legacy system is relevant to this appeal. Under the legacy system, a claim- ant may start the VA appeals process by submitting a No- tice of Disagreement. The VA must either resolve the disagreement or prepare a Statement of the Case explain- ing the VA’s position. 38 U.S.C. § 7105(d)(1) (2006). If the claimant desires review by the Board, the claimant must file a “Substantive Appeal” within 60 days of the mailing of the Statement of the Case or within a year of the mailing of the decision being appealed, whichever is later. 38 C.F.R. § 19.52(b). “Following receipt of a timely Substan- tive Appeal, the agency of original jurisdiction [the RO] will certify the case to the Board.” Id. § 19.35. The RO “may close the appeal without notice . . . for failure to respond to a Statement of the Case within the period allowed.” Id. § 19.32. To manage legacy appeals and to determine whether legacy appeals have been timely filed, the VA operates an electronic database known as the Veterans Appeals Con- trol and Locator System (“VACOLS”). When the VA re- ceives a Notice of Disagreement, the case is entered into the system. When the VA receives a timely Substantive Appeal, a VA employee notes the appeal in VACOLS. If no timely Substantive Appeal is filed, VACOLS Case: 23-1387 Document: 50 Page: 4 Filed: 08/20/2024

“automatically closes legacy appeals on the first day of the month following [the relevant deadline] if VACOLS does not reflect that a claimant has submitted a Substantive Ap- peal.” 2 J.A. 2. If the appeal is listed as closed, it is not processed by the VA. The VA does not notify the claimant that VACOLS closed their appeal. Thus, if a VA employee improperly handles a Substantive Appeal, VACOLS will close the file without notice to the claimant. The problem here is that the system erroneously closed timely appeals, at least approximately 3,000 in number, and the VA then withheld action on such appeals. That is what happened to U.S. Army veterans J. Roni Freund and Marvin Mathewson, whose successors are the named petitioners in this putative class action. Ms. Freund filed a disability claim for PTSD, which the VA RO denied. She timely filed a Substantive Appeal to the Board. But her appeal was closed by VACOLS, and the VA took no action on it for over a year. Ms. Freund died in July 2022, and her brother Mark Freund was substituted as claimant. The other named petitioner, Mr. Mathewson, filed a claim for special monthly compensation based on the need for aid and attendance. After his claim was denied by the RO, he filed a timely Substantive Appeal to the Board in December 2017, which was erroneously closed by VACOLS. Mr. Mathewson died three years after he filed his Substantive Appeal. The VA granted his surviving

2 The Secretary of Veterans Affairs notes that “VACOLS’s characterization . . . has no inherent legal sig- nificance; VACOLS cannot actually close, withdraw, or ter- minate an appeal.” Br. for Respondent at 6. For consistency with the Veterans Court’s opinion and the par- ties’ submission, we refer to VACOLS as erroneously “clos- ing” appeals. However, we do not mean to suggest that an automatic VACOLS closure will “close” an appeal as the term is used in 38 C.F.R. § 19.32. Case: 23-1387 Document: 50 Page: 5 Filed: 08/20/2024

FREUND v. MCDONOUGH 5

spouse Mary Mathewson’s request to be substituted into his appeal, but apparently took no other action on it. These inactions allegedly violated the statutory requirement that, if there is a timely-filed appeal, “[a]ppellate review shall be initiated.” 38 U.S.C. § 7105(a). In June 2021, Ms. Freund and Mrs. Mathewson filed a mandamus petition in the Veterans Court in aid of this court’s and the Veterans Court’s prospective jurisdiction. The theory was that the VA had improperly truncated the appeals process, and that this action frustrated appellate review of the proceedings. See Roche v. Evaporated Milk Ass’n, 319 U.S. 21, 26 (1943) (noting that “a function of mandamus in aid of appellate jurisdiction is to remove ob- stacles to appeal”); see also Bates v.

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Cite This Page — Counsel Stack

Bluebook (online)
114 F.4th 1371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freund-v-mcdonough-cafc-2024.