Stephen Marozsan v. The United States of America and the Veterans' Administration, Defendants

852 F.2d 1469, 1988 U.S. App. LEXIS 10702, 1988 WL 79781
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 25, 1988
Docket86-1954
StatusPublished
Cited by65 cases

This text of 852 F.2d 1469 (Stephen Marozsan v. The United States of America and the Veterans' Administration, Defendants) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stephen Marozsan v. The United States of America and the Veterans' Administration, Defendants, 852 F.2d 1469, 1988 U.S. App. LEXIS 10702, 1988 WL 79781 (7th Cir. 1988).

Opinions

FLAUM, Circuit Judge,

with whom BAUER, Chief Judge, and CUMMINGS, HARLINGTON WOOD, Jr., CUDAHY, POSNER, and KANNE, Circuit Judges, join.

Stephen Marozsan filed a complaint in the district court alleging in part that the Veterans’ Administration violated his constitutional right to due process of law. The district court ruled that 38 U.S.C. § 211(a) “bars a court from hearing and reviewing an action challenging a decision of the V.A., even when a plaintiff alleges that the decision violates his constitutional rights.” Marozsan v. United States, 635 F.Supp. 578, 580 (N.D.Ill.1986). Because Marozsan challenges the constitutionality of the procedures used by the Administrator, and because we do not read § 211(a) to preclude a federal court from hearing this challenge, we reverse and remand for further proceedings consistent with this opinion.

I.

Marozsan injured his back in 1949 while on active duty in the Navy. He filed his first claim for veterans’ benefits in 1953. This and subsequent claims1 were [1471]*1471denied until 1981, when the Board of Veterans’ Appeals rated Marozsan 20% disabled. The Board refused Marozsan’s petitions to increase this rating. In August of 1984, Marozsan filed an action in federal court alleging, among other things, that the V.A. employed an arbitrary quota system in processing claims that denied him due process of law. In his complaint, Marozsan requested that the district court issue a “directive to the Agency” enjoining “capricious and arbitrary” decisions. He also' asserted that he

does not seek judicial review of the decision rendered in his own particular V.A. claim action, erroneous as it may be, but is questioning the constitutionality of the V.A. procedures which make it impossible for veterans to obtain a fair and impartial hearing.

The district court dismissed all of the defendants except the United States and the V.A.,2 converted the defendants’ motion to dismiss into a motion for summary judgment, and entered summary judgment in their favor. The court found that § 211(a) was an unequivocal bar to judicial review of Marozsan’s due process claims, and rejected on the merits his equal protection challenge to the statute itself.3

II.

The district court interpreted Mar-ozsan’s claim as a challenge to his benefit level and therefore a claim essentially seeking money from the Treasury. But this is an inappropriate characterization of the complaint. Although it is not a model pleading, a reading of Marozsan’s complaint clearly reveals that it establishes a claim for more than benefits. He alleges serious constitutional violations, including a claim that the V.A. employs a quota system 4 which arbitrarily limits the number of benefits claims granted. This procedure, he asserts, unconstitutionally deprived him of his property interest in his veterans’ benefits.5 It is evident that Marozsan would like to obtain increased benefits from the Administrator; were he not a disabled veteran seeking benefits the [1472]*1472events giving rise to this action would not have occurred, and Marozsan would not have standing to challenge the V.A.’s procedures. But the V.A.’s decision to grant or deny him higher benefits under the veterans’ benefits statutes and regulations is not our concern. Marozsan properly asks us to review the methods — not the decision — of the Administrator. He claims that a federal executive agency has acted outside its constitutional authority by violating his right to due process. Marozsan’s action therefore is not essentially a suit to recover veterans’ benefits; “it is a suit to enforce lawful conduct on the part of the [administrator].” Starnes v. Schweiker, 715 F.2d 134, 141 (4th Cir.1983) (holding that § 1395ff of the Social Security Act did not bar claims that the Secretary’s reimbursement ceilings violated the Constitution). When the issue is “not whether the Administrator’s decision granting or denying benefits in a particular case was right or wrong, but rather whether the Administrator had acted consistently with his grant of authority or had exceeded his authority and acted in violation of veterans’ rights guaranteed by the fifth amendment,” § 211(a) does not apply. Arnolds v. Veterans’ Administration, 507 F.Supp. 128, 130-31 (N.D.Ill.1981).

The district court, having labeled Maroz-san’s challenge a claim for benefits despite its constitutional allegations, ruled that a federal court could not exercise review. This holding, if correct, would imply that Congress has chosen not to grant Marozsan a judicial remedy against V.A. procedures that violate the Constitution. As,a result, Marozsan would have no judicial forum, and indeed — since the V.A. disclaims authority to consider constitutional claims 6 — no forum at all in which to raise his due process claim.7 See Bartlett v. Bowen, 816 F.2d 695, 703 (D.C.Cir.1987). Yet if § 211(a) deprives us of jurisdiction, that statute would implicate profound and long-debated questions about the power of Congress, consistent with Article III, to preclude all judicial review of executive agency action. We must construe statutes to avoid such difficult constitutional questions whenever possible. Edward J. DeBar tolo Corp. v. Florida Gulf Coast Bldg, and Constr. Trades Council, — U.S. -, 108 S.Ct. 1392, 1397, 99 L.Ed.2d 645, (1988); Johnson v. Robison, 415 U.S. 361, 366-67, 94 S.Ct. 1160, 1165, 39 L.Ed.2d 389 (1974). The logical extension of the Supreme Court’s reasoning in Johnson and Traynor v. Turnage, — U.S. -, 108 S.Ct. 1372, 99 L.Ed.2d 618 (1988) and the structure of our constitutional form of government dictate that we not read § 211(a) to preclude all judicial review of a veteran’s serious constitutional claims. To preserve its constitutionality, we must instead construe § 211(a) to allow substantial constitutional challenges8 to the veterans’ benefits statutes and regulations, as well as to the procedures established by the V.A. to administer them.

III.

When the district court ruled on Maroz-san’s claim, it did not have the benefit of two decisions of this court which narrowly construed § 211(a). Because the statute is facially ambiguous, it is possible to interpret it as barring review of all decisions of [1473]*1473the Administrator (a broad interpretation), or only those decisions of law or fact under V.A. benefits laws (a narrower construction).9 In Winslow v. Walters, 815 F.2d 1114, 1117 (7th Cir.1987) a veteran filed an action challenging the constitutionality of the V.A.’s procedures, claiming that the agency did not provide him with a hearing before changing his disability rating. We held in Winslow that § 211(a) does not bar review of claims that the procedures of the V.A. violate the due process clause. In Mathes v. Hornbarger, 821 F.2d 439, 440 (7th Cir.1987) we reiterated the holding of Winslow that “federal courts are not divested of jurisdiction over suits challenging the constitutionality of the VA’s procedures under the Due Process Clause of the Fifth Amendment.”10 The narrow interpretation of § 211(a) that we adopted in Winslow and Mathes

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852 F.2d 1469, 1988 U.S. App. LEXIS 10702, 1988 WL 79781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephen-marozsan-v-the-united-states-of-america-and-the-veterans-ca7-1988.