Soto v. United States

Procedural entryThis page is a short order in Soto v. United States. Read the opinion of the Court — 92 F.4th 1094
Court of Appeals for the Federal Circuit·Decided February 12, 2024·No. 22-2011·Published

Opinion

United States Court of Appeals for the Federal Circuit

SIMON A. SOTO, ON BEHALF OF HIMSELF AND ALL OTHER INDIVIDUALS SIMILARLY SITU-

ATED,

Plaintiff-Appellee

v.

UNITED STATES, Defendant-Appellant

2022-2011

Appeal from the United States District Court for the Southern District of Texas in No. 1:17-cv-00051, Judge Rolando Olvera, Jr.

Decided: February 12, 2024

JOHNNET SIMONE JONES, Sidley Austin LLP, Washington , DC, argued for plaintiff-appellee. Also represented by ANKUR SHINGAL, EMILY MILY WEXLER, Chicago, IL; RO- CHELLE BOBROFF, RENEE A. BURBANK, BARTON FRANK STICHMAN, I, National Veterans Legal Services Program , Arlington, VA.

JENNIFER UTRECHT, Appellate Staff, Civil Division, United States Department of Justice, Washington, DC, 2 SOTO v. US

argued for defendant-appellant. Also represented by BRIAN M. BOYNTON, CHARLES W. SCARBOROUGH.

Before REYNA, HUGHES, and STARK, Circuit Judges.

Opinion for the court filed by Circuit Judge HUGHES. Dissenting opinion filed by Circuit Judge REYNA.

The government appeals a decision from the United States District Court for the Southern District of Texas holding that the six-year statute of limitations in the Barring Act, 31 U.S.C. § 3702, does not apply to claims for unpaid combat-related special compensation governed by 10 U.S.C. § 1413a. Because we conclude that the district court erred by holding that the Barring Act did not apply to the settlement of those claims, we reverse the district court’s grant of summary judgment and remand for further proceedings consistent with this opinion.

I

A

Under 38 U.S.C. §§ 5304–05, retired veterans generally may not receive both their retired pay and VA disability compensation and must waive a portion of their military retired pay to receive disability pay. However, retired veterans who establish that their disability is attributable to a combat-related event may receive additional compensation (combat-related special compensation, or CRSC) up to the amount of waived retired pay. 10 U.S.C. § 1413a (the CRSC statute).

Before January 1, 2008, CRSC was only available to veterans who had completed at least twenty years of military service. See National Defense Authorization Act for Fiscal Year 2008, Pub. L. No. 110-181, div. A, tit. VI, § 641, 122 Stat. 3, 156. But effective January 1, 2008, Congress expanded eligibility to retirees with fewer than twenty

SOTO v. US 3

years of military service if they were medically retired under 10 U.S.C. §§ 1201–22. 10 U.S.C. § 1413a(b)(3)(B).

The CRSC statute directs the Secretary of Defense to “prescribe procedures and criteria under which a disabled uniformed services retiree may apply” for CRSC. Id. § 1413a(d). As part of these procedures, a service member must elect to receive CRSC, and the appropriate military department will determine whether the service member is eligible (which, generally, requires being in retired status and having a combat-related disability rated at least 10%). Department of Defense Financial Management Regulation , DoD 7000.14-R, vol. 7B, ch. 63, at 63-7. CRSC can be granted retroactively, and agency regulations state that retired service members “may submit an application for CRSC at any time” and CRSC will be paid “for any month after May 2003 for which all conditions of eligibility were met, subject to any legal limitations.” Id. at 63-6 (emphasis added).

Section 3702 of title 31, known as the Barring Act, provides a mechanism for settling 1 military-related claims against the government that are not covered in other statutory provisions. In particular, the Secretary of Defense has authority to settle all “claims involving uniformed service members’ pay, allowances, travel, transportation, payments for unused accrued leave, retired pay, and survivor

1 “Settling” a claim “means to administratively determine the validity of that claim.” See Adams v. Hinchman, 154 F.3d 420, 422 (D.C. Cir. 1998) (quoting U.S. General Accounting Office, Principles of Federal Appropriations Law 11-6 (1982) and citing Illinois Sur. Co. v. United States ex rel. Peeler, 240 U.S. 214, 219 (1916) (“The word ‘settlement,’ in connection with public transactions and accounts , has been used from the beginning to describe administrative determination of the amount due.”)).

4 SOTO v. US

benefits.” 31 U.S.C. § 3702(a)(1)(A) (emphasis added). As relevant here, the Barring Act contains a six-year statute of limitations. 31 U.S.C. § 3702(b)(1) (providing that all claims falling within the scope of the statute “must be received by the official responsible . . . within 6 years after the claim accrues”). The Secretary of Defense can waive the statute of limitations for claims not in excess of $25,000 as long as a waiver is requested. 31 U.S.C. § 3702(e)(1), (3); see also Procedures for Settling Personnel and General Claims and Processing Advanced Decision Requests, DoD Instruction 1340.21, enclosure 6, ¶ 6.4 (outlining procedure permitting a claimant to apply for a waiver of the statutory time limit where a claim was untimely).

B

With that background in mind, we turn to the facts of this case. Simon A. Soto is a retired member of the United States Marine Corps with a combat-related disability rated at least 10%. He was medically retired from active duty in April 2006 with less than twenty years of military service. Although he was eligible for CRSC as of June 2009 (when he received his disability rating), he did not apply until June 2016. At that time, the Navy informed Mr. Soto that his claim was limited under the Barring Act, and as a result , he received six years of retroactive CRSC payments, dating back to roughly July 2010. Mr. Soto did not request a waiver of the statutory time limit under § 3702(e)(1).

Mr. Soto filed a class action lawsuit 2 in the Southern District of Texas under 28 U.S.C. § 1346(a)(2) (the Little Tucker Act) on behalf of himself and others similarly

2 The other plaintiffs in this class are similarly situated : they have all received six years of retroactive CRSC payments but were eligible for CRSC for more than six years before they applied. None of the class members applied for a waiver of the statutory time limit.

SOTO v. US 5

situated, arguing that the Barring Act does not apply to settling claims for CRSC. Mr. Soto claimed that, based on Congress’s expansion of CRSC to veterans with less than twenty years of military service, he was entitled to compensation dating back to the effective date of the amended statute , or January 1, 2008, rather than July 2010, six years prior to his application for CRSC.

The government moved for judgment on the pleadings, which the district court denied. In denying the motion, the district court held that the Barring Act did not apply to the settlement of CRSC claims because the CRSC statute was a “specific” statute that superseded the terms of the Barring Act. See Morton v. Mancari, 417 U.S. 535, 550–51 (1974) (“Where there is no clear intention otherwise, a specific statute will not be controlled or nullified by a general one, regardless of the priority of enactment.”); Hernandez v. Dep’t of Air Force, 498 F.3d 1328, 1332 (Fed. Cir. 2007) (holding that the Barring Act’s “general background provisions restricting recovery against the government” were “inapplicable” because of the more specific period of recovery in the Uniformed Services Employment and Reemployment Rights Act). The district court also applied the pro- veteran canon of statutory interpretation to hold that the Barring Act did not apply. See Brown v. Gardner, 513 U.S. 115, 117–18 (1994) (“[I]nterpretive doubt is to be resolved in the veteran’s favor.”). The district court later granted summary judgment in favor of the class for the same reasons .

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