Patrick M. Overton v. Robert L. Wilkie

CourtUnited States Court of Appeals for Veterans Claims
DecidedSeptember 19, 2018
Docket17-0125
StatusPublished

This text of Patrick M. Overton v. Robert L. Wilkie (Patrick M. Overton v. Robert L. Wilkie) is published on Counsel Stack Legal Research, covering United States Court of Appeals for Veterans Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patrick M. Overton v. Robert L. Wilkie, (Cal. 2018).

Opinion

UNITED STATES COURT OF APPEALS FOR VETERANS CLAIMS

No. 17-0125

PATRICK M. OVERTON, APPELLANT,

V.

ROBERT L. WILKIE, SECRETARY OF VETERANS AFFAIRS, APPELLEE.

On Appeal from the Board of Veterans' Appeals

(Argued June 20, 2018 Decided September 19, 2018)

Jerome T. Wolf, of Kansas City, Missouri, for the appellant.

Jeremy Yung-Ping Wong, with whom James M. Byrne, General Counsel; Mary Ann Flynn, Chief Counsel; and Sarah H. Fusina, Acting Deputy Chief Counsel, all of Washington, D.C., were on the brief for the appellee.

Before DAVIS, Chief Judge, and PIETSCH and ALLEN, Judges.

ALLEN, Judge: In Gray v. McDonald, 1 this Court held that VA's interpretation of 38 C.F.R. § 3.307(a)(6)(iii) designating Da Nang Harbor as an offshore waterway, while designating other bays and harbors as inland waterways, was arbitrary and capricious.2 The Court remanded the matter for VA to reevaluate its waterway definitions in light of the purpose of the regulation— to provide compensation based on the probability of herbicide exposure.3 In February 2016, VA modified its definition of "inland waterways" in its Adjudications Procedures Manual (M21-1),4 opting not to adopt a formal regulation in title 38 of the Code of Federal Regulations and, thereby, obviating the requirement for notice-and-comment under the Administrative Procedure Act (APA).5 The new M21-1 provision excluded all Vietnamese bays and harbors from the definition

1 27 Vet. App. 313 (2015). 2 Id. at 326-27. 3 Id. 4 VA ADJUDICATIONS PROCEDURES MANUAL (M21-1), pt. IV, sbpt. ii, ch. 1, sec. H.2.a (Feb. 2018). The provision was last updated in March 2018. 5 See 5 U.S.C. §§ 552(a)(1)(D), 553; see also DAV v. Sec'y of Veterans Affairs, 859 F.3d 1072, 1077 (Fed. Cir. 2017) ("There is no notice-and-comment rulemaking for [M21-1] revisions as required by § 553."). of "inland waterways."6 In June 2017, the Federal Circuit decided DAV v. Secretary of Veterans Affairs, in which it held that the M21-1 is an internal manual used to guide VA adjudicators and does not establish substantive rules.7 The Federal Circuit specifically noted that the Board is not bound by the M21-1.8 Before us today is U.S. Navy veteran Patrick M. Overton who served on active duty from March 1967 to February 1968, including service aboard the U.S.S. Providence while it operated and anchored in Da Nang Harbor from October to December 1967. He appeals a November 1, 2016, Board of Veterans' Appeals decision that denied service connection for type II diabetes mellitus with retinopathy and ischemic heart disease, both including as due to herbicide exposure.9 The Board concluded that the appellant had not demonstrated actual exposure to herbicides and also that he was not entitled to the presumption of exposure.10 The Board relied on the modified M21-1 provision to deny the appellant's claims concerning presumptive herbicide exposure.11 Yet, the Board did not discuss why it relied on the M21-1. The appeal is timely, and the Court has jurisdiction to review the Board's November 2016 decision.12 This matter was referred to a panel of the Court primarily to address the Board's reliance on VA's new M21-1 provision. The Court will also address the basis for its reasoning in Gray. As we explain below, the Court holds that when relying on any M21-1 provision, the Board must independently review the matter the M21-1 addresses. If after such review, the Board chooses to rely on the M21-1 as a factor in its analysis or as the rule of decision, it must provide adequate reasons or bases for doing so. The Board may not simply rely on the nonbinding M21-1 position without analysis. Because the Board did not engage in the appropriate analysis here, the Court will set aside the November 1, 2016, Board decision and remand the matter for readjudication consistent with this decision. Given this disposition, the Court declines to opine on the content of

6 M21-1, pt. IV, sbpt. ii, ch. 1, sec. H.2.a. 7 859 F.3d at 1077-78. 8 Id. at 1077; see also Gray v. Sec'y of Veterans Affairs, 875 F.3d 1102, 1108 (Fed. Cir. 2017) (affirming the Federal Circuit's position in DAV that the Board is not bound by M21-1 provisions). 9 Record (R.) at 2-19. 10 R. at 8-19. 11 R. at 14 ("The new guidance is that all harbors and bays are considered offshore, while all rivers and deltas are considered inland."). 12 38 U.S.C. §§ 7252(a) and 7266(a).

2 the revised M21-1 provision on which the Board relied. And, finally, the Court will also remand the decision concerning direct exposure because the Board's analysis may be affected by the actions it takes on remand concerning presumptive exposure.

I. FACTS AND PROCEDURAL HISTORY This matter stems from the appellant's timely Substantive Appeal of a May 2013 VA regional office denial of his claims for benefits for type II diabetes, diabetic retinopathy secondary to diabetes, and ischemic heart disease.13 In January 2016, the appellant's private physician, Chris Martin, M.D., opined that the appellant's diabetes may have been caused by exposure to herbicides.14 The appellant submitted a statement to VA explaining that he had experienced headaches while he was aboard the U.S.S. Providence, he reported odd smells, and observed that his headaches lessened in intensity when the ship departed Da Nang Harbor.15 In March 2016, another private physician, Michael Sokol, M.D., opined that it is at least as likely as not that the appellant was exposed to Agent Orange, which accounts for his development of type 2 diabetes.16 He noted that the appellant did not have any genetic predisposition to diabetes, which makes it more likely that his exposure to Agent Orange "is the likely precipitant" to that condition.17 Dr. Martin's and Dr. Sokol's opinions are the only etiological medical evidence of record. In November 2016, the Board issued the decision on appeal denying the appellant's claims. The Board reviewed the appellant's lay statements that he had been exposed to herbicides while aboard the U.S.S. Providence to provide support for combat troops. The Board generally explained that because "inland waterways" are not defined in VA regulations, it would look to the M21-1 for interpretive guidance, which stated that "the following locations are considered to be offshore waters of the Republic of Vietnam: Da Nang Harbor, Nha Trang Harbor, Qui Nhon Bay Harbor, Cam Rahn Bay Harbor, Vung Tau Bay Harbor, and Ganh Rai Bay."18 Moreover, the Board cited

13 R. at 1428 (initial claim for benefits), 1642 (May 2013 VA rating decision), 1380-81 (Notice of Disagreement), and 1334 (Aug. 2014 Substantive Appeal). 14 R. at 391. 15 R. at 274-75. 16 R. at 418-19. 17 R. at 629. 18 R. at 10.

3 our decision in Gray v. McDonald and stated that, as a result of the Court's decision in that matter, VA had updated its policy to treat all bays and harbors in the same way concerning the inland— versus—offshore classification and the M21-1 now provided that "all harbors and bays are considered offshore, while all rivers and deltas are considered inland."19 After providing this general explanation, the Board addressed the appellant's claim specifically both on a direct and presumptive exposure basis.

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Patrick M. Overton v. Robert L. Wilkie, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patrick-m-overton-v-robert-l-wilkie-cavc-2018.