Liesegang v. Secretary of Veterans Affairs

65 F. App'x 717
Court of Appeals for the Federal Circuit·Decided May 15, 2003·No. No. 01-7109·Published·Cited by 4 cases

Opinions

ORDER

The Secretary of Veteran Affairs (the “Secretary”) petitions for panel rehearing of this court’s decision in Liesegang v. Sec’y of Veterans Affairs, 312 F.3d 1368 (Fed.Cir.2002). Robert B. Liesegang, Sr., Roberto Sotelo, and Paul L. Fletcher (collectively, the “Veterans”) respond.

Liesegang involved a challenge to the effective date of a regulation issued by the Department of Veterans Affairs (the “agency”) establishing a presumption of service connection for Vietnam veterans who developed Type-2 diabetes. Id. at 1370. Based on Congress’s unambiguous intent, we determined that the agency erred in adopting a July 9, 2001, effective date. Id. at 1372-76. Under the controlling statute, the effective date for this regulation is the date of the rule’s issuance, which is May 8, 2001. Id. at 1376 (citing 38 U.S.C. § 116(c)(2) (2000)). The Secretary acquiesces in our holding regarding the effective date of the regulation.

The Secretary’s petition for rehearing questions the relief that we granted. The Veterans initially requested that we vacate all adjudications made pursuant to the challenged regulation. Id. at 1378. For prudential reasons, we declined to grant the Veterans’ requested relief and, instead, adopted the narrower remedy suggested by the Secretary to use “publication of additional regulations and guidelines, and appropriate outreach to convey the neces[718] sary information to the veteran community.” Id. Because “[t]he agency does not specify the content of any such regulations and guidelines, ... we refrain[ed] from telling the agency what such regulations or guidelines should say.” Id. On the subject of the suggested information outreach, we ordered that

veterans with pending or finally adjudicated claims under the diabetes regulation be notified in writing, in clear and unambiguous terms, that the true effective date of the regulation is May 8, 2001. In addition, each such veteran must be further informed of the consequences to him or her, in terms of the effect on his or her claim for compensation, of the correct effective date. If such information is not conveyed in writing to each such veteran, there can be no assurance that veterans will be able to enjoy their entitlement to the correct effective date.

Id. at 1378-79.

The Secretary now questions the injunctive relief we ordered to accommodate his suggestion that information outreach was appropriate under these circumstances. He argues that the ordered relief is overly broad, needs to be limited, and must be clarified. Specifically, the Secretary seeks our imprimatur for the following remedial actions he plans to take in this case. First, the agency will provide a nonindividualized, general notice of our ruling in Liesegang to all veterans who received benefits under the diabetes regulation and whose claim was received between May 8, 2001, and July 9, 2002. This notice will inform the Veterans that the effective date of the diabetes regulation is May 8, 2001, rather than July 9, 2001, and will notify them in general terms of the effect this change will have on their benefit awards. The Secretary states that the agency is capable of sending this notice within 45 days of the date of an order issued in response to the Secretary’s Petition for Panel Rehearing. Second, the agency will automatically revise the effective dates of all awards made under the diabetes regulation to reflect the correct effective date of May 8, 2001, without requiring that the affected veterans submit a request for corrective action. The Secretary, however, asserts that the automatic revision of effective dates involves “tens of thousands” of claims, and that it “will take longer than 45 days” to complete the automatic revision process. Once the automatic change is completed, the agency will send individualized notices to each affected veteran, along with an explanation of the actions taken, the reasons for such changes, the means for obtaining additional information, and the avenues for challenging the agency’s actions. Finally, the agency will issue payments to each veteran who is entitled to retroactive benefits as a result of the agency’s automatic effective date correction. The Secretary thus requests that we modify our ruling to authorize those proposed remedial actions.

The Veterans agree with the Secretary’s proposed modifications, except in two major respects. First, the Veterans argue that the agency should send notices to claimants with pending claims under the diabetes regulation by a date certain, to empower claimants to obtain a correction in case the adjudicator set the wrong effective date and to facilitate the preparation and presentation of their pending claims. Second, the Veterans expressed concerns that, without a date certain in the near future for completing the automatic corrections to the diabetes claims’ effective date and the sending of personalized notices, agency delays may result in a permanent loss of benefits for eligible claimants who die before the agency takes corrective actions in their individual cases.

[719] As to the first ground raised by the Veterans, we decline to interfere with pending claims that have not yet been fully adjudicated. As we have explained, “[w]ith regard to claims by veterans under the diabetes regulation that have not reached final adjudication, we have no reason to doubt that the agency will apply the correct effective date of May 8, 2001.” Liesegang, 312 F.3d at 1378.

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