McCadney v. United States

CourtUnited States Court of Federal Claims
DecidedFebruary 25, 2025
Docket24-152
StatusPublished

This text of McCadney v. United States (McCadney v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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McCadney v. United States, (uscfc 2025).

Opinion

In the United States Court of Federal Claims MYLES MCCADNEY,

Plaintiff,

v. No. 24-152 (Filed: February 25, 2025) THE UNITED STATES,

Defendant.

Jason Ellis Perry, Law Office of Jason Perry, LLC, Wellington, FL, for Plaintiff.

Elinor Joung Kim, Civil Division, United States Department of Justice, Washington, DC, for Defendant.

OPINION AND ORDER

LERNER, Judge.

Plaintiff Myles McCadney, a disabled veteran, was separated from the Army after the Integrated Disability Evaluation System (“IDES”) determined a condition affecting his feet made him unfit for continued service. Plaintiff challenges the Army Board for Correction of Military Records’ (“ABCMR” or “Board”) finding that two other conditions affecting his feet were fitting for military service. Mr. McCadney asserts that the Army and Board made factual errors and ignored important evidence. He also alleges that the Army’s evaluation violated the IDES process in systemic ways. Before this Court are the parties’ Cross-Motions for Judgment on the Administrative Record. Def.’s Mot. for J. on the Admin. R. (hereinafter “Def.’s Mot.”), ECF No. 12; Pl.’s Cross-Mot. for J. on the Admin. R. and Resp. (hereinafter “Pl.’s Mot.”), ECF No. 15. Military fitness determinations are reserved to the military branches, and thus this Court may not re-weigh the evidence. Yet on this record, key elements of the ABCMR’s decision are unsupported by substantial evidence and are arbitrary and capricious. Further, while Plaintiff largely fails to establish systemic violations, certain aspects of how the Army administered the IDES process appear contrary to regulation and arbitrary on this record. Accordingly, for the reasons below, Defendant’s Motion is GRANTED IN PART and DENIED IN PART. Plaintiff’s Motion is GRANTED IN PART and DENIED IN PART. The Court REMANDS the case to the Board for proceedings consistent with this Opinion. I. Factual Background A. The IDES and Army Disability Retirement Process This Opinion references the applicable regulations in force at the time of Plaintiff’s separation from the Army in October 2018. A military service member may receive medical disability retirement pay and other benefits if the member “is unfit to perform the duties of the member’s office, grade, rank, or rating because of a physical disability” and that disability is rated “at least 30 percent under the standard schedule . . . in use by the Department of Veterans Affairs at the time of the determination.” 10 U.S.C. § 1201(a)-(b)(3)(B). See also Thomassee v. United States, 158 Fed. Cl. 233, 234 (2022). The IDES is a joint medical evaluation process used to determine whether a soldier should receive disability retirement. Kaster v. United States, 158 Fed. Cl. 86, 90 n.2 (2022). The process combines disability examinations performed by the Department of Defense (“DoD”) and the Department of Veterans Affairs (“VA”). Id. The DoD then must “apply the VA’s disability rating determinations for all conditions the [Army] determines to be unfitting.” Id. See generally DoD Manual (hereinafter “DoDM”) 1332.18, Vol. 2, Encl. 3 § 1 (Aug. 5, 2014). Referral to the IDES often begins with updates to the service member’s “PULHES” factors. Army Reg. 40-501 § 7–1 (June 14, 2017) (hereafter “Army Reg. 40-501”). The Army assigns numerical indicators to six letters corresponding to a body system: P – physical capacity; U – upper extremities; L – lower extremities; H – hearing and ears; E – eyes; and S – psychiatric. Id. § 7-3(b)-(c). A score of 3 or 4 indicates conditions requiring “significant” or “drastic[]” duty limitations, respectively. Id. § 7-3(d)(3)-(4). If a soldier is assigned a score of 3 or 4 in any of these six categories, a physician reviews whether the soldier appears to meet medical retention standards. Army Reg. 635-40 § 4–1(e) (Jan. 19, 2017) (hereafter “Army Reg. 635-40”). If a service member’s condition “appears not to meet medical retention standards,” they are referred to the IDES process. Id. § 4–1(e)(1). 1. VA Examination and Proposed Ratings

In the IDES, the service member receives “a single set of disability medical examinations” and “disability ratings provided by [the] VA for use by both departments.” Army Reg. 635-40 § 4-1(d)(2)(a)-(b). See also Lyon v. United States, 168 Fed. Cl. 530, 530 n.4 (2023) (“[T]he VA performs the medical exam and decides the rating.”) (alteration in original); DoDM 1332.18, Vol. 2 Encl. 2 § 1. The ratings include a disability percentage. See 38 C.F.R. § 4.1. They also include a numerical code corresponding to the VA Schedule for Rating Disabilities (“VASRD”), a list of diseases and injuries. See id. The VA and the Army use the VA exam and rating for different purposes. The Army considers them “in conjunction with the servicemembers’ medical records . . . to make a determination of servicemembers’ fitness for continued military service.” Fuentes v. United States, 157 Fed. Cl. 433, 438 (2021) (citation omitted). The VA uses them to compensate for future injuries and loss of civilian employment. See 38 C.F.R. § 4.1. 2. The Army Uses VA Exams and Ratings in Fitness Determinations.

As the VA produces its ratings, the Army determines whether the soldier’s claimed conditions are unfitting. “A Soldier will be considered unfit when the preponderance of evidence establishes that the Soldier, due to disability, is unable to reasonably perform the duties

2 of their office, grade, rank, or rating.” Army Reg. 635-40 § 5–1. This is a functional determination that must consider “whether the Soldier can perform the common military tasks required for the Soldier’s” duties and be deployed. Army Reg. 635-40 § 5-4 (c), (e), (g). After referral to the IDES, an Army Medical Evaluation Board (“MEB”) evaluates the soldier. Army Reg. 635-40 § 4–7(a). The MEB makes “a preliminary determination of the [soldier’s] medical status and duty limitations.” Thomassee, 158 Fed. Cl. at 235. The MEB prepares a Narrative Summary or “NARSUM.” Army Reg. 635-40, § 4–12(a). The MEB uses the VA exams as evidence, along with other records. An MEB must review the VA exam, “may seek clarification or correction from the VA,” and “will resolve any inconsistencies regarding diagnosis, onset, severity, and impact on duty.” Id. § 4–12(c)-(d). The service member may appeal the MEB’s findings and seek review by a physician. Id. § 4–13, 4–14. If the MEB preliminarily determines that the soldier cannot perform their duties, it refers the case to a Physical Evaluation Board (“PEB”). Army Reg. 635-40 § 4–19. The PEB determines whether members are unfit. Keltner v. United States, 165 Fed. Cl. 484, 491 (2023). An informal PEB first assesses the MEB’s results and the service member’s case file to make initial findings. Army Reg. 635-40 § 4–22(a)(1). If a soldier is either determined to be unfit or seeks to challenge a finding that they are fit, they may request a formal PEB. Id. § 4–23(a)-(c). The formal PEB is designed to satisfy a soldier’s statutory right to a “full and fair hearing” before being separated for physical disability. See 10 U.S.C. § 1214; Army Reg. 635-40 § 4–23. The PEB must “consider all relevant evidence in assessing Service member fitness, including the circumstances of referral.” Department of Defense Instruction (“DoDI”) 1332.18, Encl. 3, App’x 2, § 3 (August 5, 2014). The PEB must use the VA exams and ratings, but they are “not determinative” of fitness. Ward v. United States, 133 Fed. Cl. 418, 431 (2017) (internal quotations omitted).

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