Sabo v. United States

102 Fed. Cl. 619, 2011 U.S. Claims LEXIS 2391, 2011 WL 6778497
CourtUnited States Court of Federal Claims
DecidedDecember 22, 2011
DocketNo. 08-899 C
StatusPublished
Cited by29 cases

This text of 102 Fed. Cl. 619 (Sabo 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.

Bluebook
Sabo v. United States, 102 Fed. Cl. 619, 2011 U.S. Claims LEXIS 2391, 2011 WL 6778497 (uscfc 2011).

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

This matter is before the Court on the parties’ Joint Motion for Final Approval of Class Action Settlement Agreement (“Mot. for Final Approval”) (docket entry 132, Dec. 1, 2011). In this motion, the parties request that the Court approve the proposed settlement agreement between the United States and the class of plaintiffs in Sabo, et al. v. United States, No. 08-899 C.

I. Background

Plaintiff class consists of men and women who served in the wars in Afghanistan and Iraq and who now suffer from Post Traumatic Stress Disorder (“PTSD”) as a result of active combat. Compl. 1 (docket entry 1, Dee. 17, 2008); Am. Compl. ¶ 136 (docket entry 25, Sept. 2, 2009). Plaintiffs were subsequently separated from the military based, at least in part, on a finding of unfitness to serve due to PTSD. Am. Compl. ¶ 136. Plaintiffs filed a complaint against defendant seeking the disability retirement pay and benefits they claim they were owed upon separation. Compl. ¶ 1; Am. Compl. ¶ 1. Specifically, plaintiffs allege that the United States Department of the Army, the United States Department of the Navy, and the United States Department of the Air Force (“the Service Branches”) failed to comply [622]*622with applicable statutes and regulations when they separated plaintiffs from the military and assigned them disability ratings of less than 50% for PTSD. Am. Compl. ¶¶ 2-3.

A. Statutory Requirements for Disability Ratings

The disability rating assigned to each service member upon his or her separation is significant because it triggers certain post-service benefits. If a service member’s disability rating is at least 30%, he or she can be medically retired. 10 U.S.C. § 1201(a)—(b). As a result of medical retirement, a service member will receive retirement pay that is based on the service member’s disability rating multiplied by his or her retirement base pay or 2.5% of the member’s years of service multiplied by his or her retirement base pay. Id. § 1401. Alternatively, if a service member’s disability rating is less than 30%, he or she can be medically separated and will receive a one-time lump-sum severance payment. Id. § 1203(a)-(b); see also id. § 1212.

The various Service Branches have or had regulations effectuating certain provisions in Title 10 of the United States Code, see, e.g., 10 U.S.C. §§ 1201(b)(3)(B), 1203(b)(4)(A), that required the Service Branches to apply the Veterans Affairs Schedule for Rating Disabilities (“VASRD”) when assessing disability ratings. Army Regulation 635-40 para. 3-5(a) (2006); Air Force Instruction 36-3212 para. 1.7 (2006); Navy Instruction 1850.4E § 3801(b) (2002); Department of Defense Instruction (“DODI”) 1332.39 para. 4.2 (1996) (rescinded 2008).

On January 28, 2008, Congress passed the National Defense Authorization Act for Fiscal Year 2008 (“NDAA”), which provided that, “[i]n making a determination of disability of a member of the armed forces for purposes of this chapter, the Secretary concerned ... shall, to the extent feasible, utilize the schedule for rating disabilities in use by [DVA].”1 National Defense Authorization Act for Fiscal Year 2008, Pub.L. No. 110— 181, § 1642, 122 Stat. 3, 465 (2008) (codified at 10 U.S.C. § 1216a(a)(l)). This reaffirmed the Service Branches’ obligation to follow the VASRD when assessing disability ratings.

On October 14, 2008, the Department of Defense issued a policy memorandum that replaced its prior regulation regarding disability ratings and effectively adopted the PTSD-related provision of the VASRD. U.S. Dep’t of Def., Policy Memorandum on Implementing Disability-Related Provisions of the National Defense Authorization Act of ZOOS (Pub L. 110-181) attachment at 19 (2008) (“DoD Memorandum”).2 According to plaintiffs, since the issuance of this regulation, the VASRD as it relates to PTSD has been appropriately applied. Pis.’ Mot. for Summ. J. 17 (docket entry 90, Jan. 28, 2011) (“Since issuance of the October 14, 2008 Policy Memorandum, DoD and the Service Branches, when making eligibility determinations involving service members found unfit in whole or in part due to PTSD, have complied with the requirements of VASRD 4.129 and assigned affected service members with a disability rating of at least 50%.”).

As a result of these statutes and regulations, the Service Branches were required to follow the VASRD when assessing disability [623]*623ratings for PTSD for the period after December 17, 20023 and prior to October 14, 2008— the span of time when class members asserted that they were allegedly assigned incorrect disability ratings for PTSD.

By statute, the Secretary of DVA is required to issue regulations that make up the VASRD. See 38 U.S.C. § 1155 (“The Secretary shall adopt and apply a schedule of ratings of reductions in earning capacity from specific injuries or combination of injuries.”). The relevant regulation promulgated as a result of this statutory requirement mandates that,

[wjhen a mental disorder that develops in service as a result of a highly stressful event is severe enough to bring about the veteran’s release from active military service, the rating agency shall assign an evaluation of not less than 50 percent and schedule an examination within the six month period following the veteran’s discharge to determine whether a change in evaluation is warranted.

38 C.F.R. § 4.129 (emphasis added). Plaintiffs claim that the Service Branches did not comply with this regulation, as they were required to do by the statutes and regulations cited above. Specifically, plaintiffs contend that the Service Branches failed to assign plaintiffs disability ratings of at least 50% when the appropriate Physical Evaluation Board found them unfit for duty due, at least in part, to PTSD. See Am. Compl. ¶¶ 39-43. Accordingly, plaintiffs claim that they are entitled to additional benefits and compensation.

B. The Class of Plaintiffs and Their Proposed Relief

On September 21, 2009, in accordance with Rule 23(c)(1) of the Rules of the Court of Federal Claims (“RCFC”), the Court granted plaintiffs’ motion to proceed as a class action, certified the class of putative plaintiffs, set forth the claims to be decided in the case, and appointed class counsel. Sept. 21, 2009

Order 1-2 (docket entry 33). The certified class of putative plaintiffs consisted of

[a]ll individuals who (a) served on active duty in the U.S.

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Cite This Page — Counsel Stack

Bluebook (online)
102 Fed. Cl. 619, 2011 U.S. Claims LEXIS 2391, 2011 WL 6778497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sabo-v-united-states-uscfc-2011.