Military-Veterans Advocacy v. Secretary of Veterans Affairs

63 F.4th 935
Court of Appeals for the Federal Circuit·Decided March 22, 2023·No. 20-1537·Published

Opinion

United States Court of Appeals for the Federal Circuit

MILITARY-VETERANS ADVOCACY INC., Petitioner

v.

SECRETARY OF VETERANS AFFAIRS, Respondent

2020-1537

Petition for review pursuant to 38 U.S.C. Section 502.

Decided: March 22, 2023

JEFFREY T. QUILICI, Orrick, Herrington & Sutcliffe LLP, Austin, TX, argued for petitioner. Also represented by MELANIE L. BOSTWICK, Washington, DC; MELANIE HALLUMS, Wheeling, WV; JOHN B. WELLS, Law Office of John B. Wells, Slidell, LA.

MEEN GEU OH, Commercial Litigation Branch, Civil Division , United States Department of Justice, Washington, DC, argued for respondent. Also represented by BRIAN M. BOYNTON, ERIC P. BRUSKIN, MARTIN F. HOCKEY, JR.; BRIAN D. GRIFFIN, BRANDON A. JONAS, Office of General Counsel, United States Department of Veterans Affairs, Washington , DC.

2 MILITARY-VETERANS ADVOCACY v.

SECRETARY OF VETERANS AFFAIRS

Before NEWMAN, PROST, and CUNNINGHAM, Circuit Judges.

NEWMAN, Circuit Judge.

Military-Veterans Advocacy Inc. (“MVA”) brings this petition pursuant to 38 U.S.C. § 502 and asks the court to review and revise certain instructions and practices of the Secretary of Veterans Affairs (“VA”), as set forth in the Veterans Affairs Adjudication Procedures Manual (the “M21-1 Manual”). This Manual provides guidance and instructions to the administrators of veterans’ benefits and claims, by interpreting and coordinating the application of statutes , regulations, policies, and judicial decisions. Thus the M21-1 Manual “limits VA staff discretion, and, as a practical matter, impacts veteran benefits eligibility for an entire class of veterans.” Nat’l Org. of Veterans’ Advocates v. Sec’y of Veterans Affs., 981 F.3d 1360, 1374 (Fed. Cir. 2020) (en banc) (“NOVA”).

BACKGROUND Section 502 Judicial Review Direct judicial review of certain VA actions and practices is authorized as follows:

38 U.S.C. § 502. Judicial review of rules and regulations.— An action of the Secretary to which section 552(a)(1) or 553 of title 5 (or both) refers is subject to judicial review. Such review shall be in accordance with chapter 7 of title 5 and may be sought only in the United States Court of Appeals for the Federal Circuit.

Section 502 establishes Federal Circuit jurisdiction for direct review of VA actions concerning “substantive rules of general applicability, statements of general policy and interpretations of general applicability” that must be published in the Federal Register, as provided by the

MILITARY-VETERANS ADVOCACY v. 3 SECRETARY OF VETERANS AFFAIRS

Administrative Procedure Act (“APA”) at 5 U.S.C. § 552(a)(1)(D). LeFevre v. Sec’y of Veterans Affs., 66 F.3d 1191, 1196 (Fed. Cir. 1995). These administrative rules, policies, and interpretations are the substance of the M21-1 Manual.

Section 553(e) provides “the right to petition for the issuance , amendment, or repeal of a rule.” 5 U.S.C. § 553(e). Judicial review is available when the right to petition for rulemaking is denied, as well as when the petition is denied on its merits. Preminger v. Sec’y of Veterans Affs., 632 F.3d 1345, 1351–53 (Fed. Cir. 2011). However, the Secretary errs in stating that the court does not thereby have jurisdiction to review the result when the agency grants a request for rulemaking but does not provide the relief sought by the requester. See Sec’y Br. 39; Preminger, 632 F.3d at 1352 (“Indeed, when Congress reported out § 502 it apparently contemplated that § 502 would provide for review of the Secretary’s decision not to issue a rule as well as the decision to issue a rule.”) (citing H.R. REP. NO. 100-963 (1988), reprinted in 1988 U.S.C.C.A.N. 5782, 5786).

The APA requires the reviewing court to “decide all relevant questions of law, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action” to the extent necessary to reach a decision. 5 U.S.C. § 706. Section 502 of Title 38 provides further oversight of agency actions with respect to veterans’ concerns. See 38 U.S.C. § 502. Legislation and Rules Relating to the Presumption of Exposure to Agent Orange MVA asks the court to review certain presumptions and procedures concerning Vietnam era exposure to the Agent Orange defoliant. MVA’s petition is directed to VA practices described in the M21-1 Manual (1) at Section IV (ii)(1)(H)(4)(a) and Section IV (ii)(1)(H)(4)(b) (the “Thailand Rules”), (2) at Section IV (ii)(1)(H)(1) (the “Blue Water 4 MILITARY-VETERANS ADVOCACY v.

SECRETARY OF VETERANS AFFAIRS

Navy Rule”), and (3) at Section IV (ii)(2)(C)(3)(e) (the “Airspace Rule”). These rules are founded on legislation that arose as veterans of the Vietnam era developed illnesses, such as non-Hodgkin’s lymphoma and other cancers, that came to be understood as related to exposure to Agent Orange .

Early legislative action concerning Agent Orange exposure is seen in the Veterans Health Programs Extension and Improvements Act of 1979, Pub. L. No. 96-151, § 307; 93 Stat. 1092, 1097–98 (1979), in which Congress required the VA to conduct a study of long-term health effects on Vietnam veterans who were exposed to dioxins that were components of Agent Orange. After study by the Centers for Disease Control (“CDC”) in 1982, see H.R. REP. NO. 98- 592 at 5 (1984), reprinted in 1984 U.S.C.C.A.N. 4449, 4451–52, Congress enacted the Veterans’ Dioxin and Radiation Exposure Compensation Standards Act, Pub. L. No. 98-542, 98 Stat. 2725 (1984) (the “Dioxin Act”). The Dioxin Act directed the VA to establish guidelines for diseases shown by “sound scientific or medical evidence” to be associated with herbicides, including Agent Orange, containing dioxins. Id. §§ 5(a)(1)(A), 5(b)(2)(B), 98 Stat. at 2727–29.

The Dioxin Act also instructed the VA to presume that a veteran experienced toxic herbicide exposure “if the information in the veteran’s service records and other records of the Department of Defense is not inconsistent with the claim that the veteran was present where and when the claimed exposure occurred.” Id. § 5(b)(3)(B). In 1986, the VA promulgated 38 C.F.R. § 3.311a, a regulation presuming exposure to herbicides containing dioxins for veterans who “served in the Republic of Vietnam.” 38 C.F.R. § 3.311a(b) (1986). This presumption applied to service in mainland Vietnam, as well as “service in the waters offshore and service in other locations, if the conditions of service involved duty or visitation in the Republic of Vietnam.” Id. § 3.311a(a)(1).

MILITARY-VETERANS ADVOCACY v. 5 SECRETARY OF VETERANS AFFAIRS

In 1990, the CDC reported the results of a comprehensive study, showing a statistically significant relation between service in Vietnam and illnesses such as non- Hodgkin’s lymphoma and other cancers. See The Association of Selected Cancers with Service in the U.S. Military in Vietnam: Final Study, I. Non-Hodgkin’s Lymphoma, 150 ARCHIVES INTERNAL MED. 2473 (1990); see also Claims Based on Service in Vietnam, 55 Fed. Reg. 43123, 43124 (Oct. 26, 1990) (38 C.F.R. pts. 3, 4).

There followed the Agent Orange Act of 1991, Pub. L.

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